- This topic has 0 replies, 1 voice, and was last updated 4 years, 7 months ago by .
Viewing 1 post (of 1 total)
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.
Sell ITM vertical credit 5-point spread for HD for $3.03 or more.
Upon entering set an exit price at $0.66.
Setting | Stock recently took a hit and you are expecting a slow steady recovery |
Capital requirement | 5-points ( $500) |
Max loss: | 5 – 3.03 = 1.97 ($200) |
Max gain | 3.03 – 0.66 = 2.37 ($234) |
Recommended lot size | x5 |
Examples |
on November 20 enter HD +5-5xDEC215-220P for 2.02 (HD is at 222) on December 19 (one day till expiration) exit HD +5-5xDEC215-220P for 0.66 (HD is 220) on December 23 enter HD +5-5xJAN220-225P for 3.03 (HD is at 219) |
Right now – 2020-02-01 SAT – the thought is that the whole market is ready to tank, plus HD gained sinificantly in January, so it is a good time to sell ITM vertical credit call that will loose value as HD moves lower.
© 2017 DomainWebCenter.com. All Rights Reserved. | Disclaimer | Contact the Editor