Option Strategy for AKRX:
1) Buy Jan 21 $10 put ~$2.75
*2) Sell current month $10 put 1.25
*Repeat this every month until either:
1) Stock declines below 10, 2) Stock rises above trendline, 3) Short month IV declines below 90%
I estimate this should yield about 25% monthly... we'll see. Max Loss is 2.50 first month and is a no-lose after the 3rd month.
1) Buy Jan 21 $10 put ~$2.75
*2) Sell current month $10 put 1.25
*Repeat this every month until either:
1) Stock declines below 10, 2) Stock rises above trendline, 3) Short month IV declines below 90%
I estimate this should yield about 25% monthly... we'll see. Max Loss is 2.50 first month and is a no-lose after the 3rd month.
Order cancelled:
Well, that ended poorly. Didn't even last a week. The $2.30 I paid for this is now about 0.50. I was so close to doing this with the $7.5, which would have been okay. Next time, I need to anticipate at least a 50% decline...
I'll probably hold on to this til the October expiration and hope for a little rebound to lessen my loss.
I'll probably hold on to this til the October expiration and hope for a little rebound to lessen my loss.
Trade closed: stop reached