GM Weekly Options Play
Updated
Description
GM Huge supply line right at the previous ATH, 64. I was initially looking for a break and close over this line for a long entry, but this is a solid rejection for a credit spread.
Call Credit Spread
By Expiration
Max loss occurs at any strike over the long call (66)
Max gain occurs at any strike under the short call (64)
SL > 340
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/19 66C
SELL
11/19 64C
R/R & Breakevens vary on fill.
Looking to make 30% return on collateral in 1 week.
The short call is placed at previous ATH for good balance of success and profit.
The long call is placed 2 points away IAW collateral requirements, risk tolerance, and R/R.
Manage Risk
Only invest what you are willing to lose
GM Huge supply line right at the previous ATH, 64. I was initially looking for a break and close over this line for a long entry, but this is a solid rejection for a credit spread.
Call Credit Spread
By Expiration
Max loss occurs at any strike over the long call (66)
Max gain occurs at any strike under the short call (64)
SL > 340
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/19 66C
SELL
11/19 64C
R/R & Breakevens vary on fill.
Looking to make 30% return on collateral in 1 week.
The short call is placed at previous ATH for good balance of success and profit.
The long call is placed 2 points away IAW collateral requirements, risk tolerance, and R/R.
Manage Risk
Only invest what you are willing to lose
Trade active
Filled @ .6.Trade closed: stop reached
Filled @ .75, -20%Looking to reverse position at EOD.
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