Bat Jr. was talking about this stock (on the show) as well as Benji in the Tasty Trader's chat. I normally shy away from riskier stuff but with too much on the sidelines right now I will dip a toe for this Chinese start up. Collecting a little over a buck to initiate the trade and a five dollar wide embedded vertical means my break even in this stock is 24 for the next 98 days. Options prices are really jacked in this stock and I was considering collecting $10 for a buy/write out til December but decided to play it a little closer to the chest. Wish me luck, I will need it for this one.
Comment:
Today with some weakness (continued) in IQ I decided to leg out of this trade and get a little more bullish........maybe not according to plan but I don't have much working for me in the market right now. I sold the 35 long put from the ratio (for 7.20) and replaced it with 2 long put verticals out in January 19 for 1.92 each 25/20 strikes. This is kind of like a collar but I will manage the 2 short 30 puts and hope they expire worthless in Sept (with a roll to Dec a possibility) and have the confidence of insurance if things keep going down to 20 or 17 something really bad. The short puts are easier to manage naked and if I get put the stock I can sell calls as well as take profits on the puts to continue to reduce basis. If it happens it will be better if it does quickly and not grind out until the last couple of weeks. I have the initial dollar credit for opening the trade and about 3.20 from the put sale giving me 4.20 in basis reduction......I will most likely wait for the 25 level to roll the short puts and would be better to wait until I am assigned shares to close the put verticals but we shall see what the market gives me.
Comment:
Bought to close 2 September 30 strike puts for 2.55 each. Even though there is only one month left these horizontal patterns make me nervous and I have 2 free put vertical put spreads 25/20 all the way into January. I made $3 on the trade and should be happy with that. I will look to leg those as well if price drops by taking profit on the long 25 puts and will keep the short 20 puts on......provided we are in the general area and not trading at 8 or something.
Trade closed manually:
See above