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Sep 9, 2021 11:26 PM

$HYZN - Another low priced meme stock with expensive DOTM calls Long

Hyzon Motors Inc.NASDAQ

Description

On the back of our early success with yesterday’s bullish call spread on ATER up 10.53% today.. we’ve found another similar play.. a low priced meme stock getting huge volumes but not yet blown out with a RSI of only 65.. HYZN was up 23% today on 8m shares traded, whilst not huge yet it could be.. and as usual with these low priced meme stocks option dealers are forced to price calls higher than puts (opposite of most stocks) to account for melt-up risk, so to take advantage of the right sided skew we buy a bullish call spread.. we’re looking at the OCT’15 $10/15 call spread for a debit of $1.15 and potential reward of $3.85 giving us a reward/risk of 3.34..
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