JETS ETF - Protected Bearish Inclination 18 Sep expiry
There seems to be a resurgence of COVID-19 cases across the globe. Before Sep 18 I doubt there would be positive news for the travel industry, especially in the US.
As price broke the support line, technically theres a chance it will continue dropping.
Positive news on the stimulus won't help travel and I do not expect an influx of investors into the travel industry as it is one of the weakest sectors and money would probably flow first into something more solid like tech or at least the S&P 500.
Sold 80 Puts @ 0.26, Strike 12
Bought 10 Puts @ 0.73 Strike 14
BP block: 10k
Max gain - est $3222
Planned Minimum gain - est $1250
As price broke the support line, technically theres a chance it will continue dropping.
Positive news on the stimulus won't help travel and I do not expect an influx of investors into the travel industry as it is one of the weakest sectors and money would probably flow first into something more solid like tech or at least the S&P 500.
- This is a protected trade. If price goes bearish, I have a chance to hit my max gain of est. $3222 but I must close the contract before it drops too much my way otherwise I will start losing.
- If prices don't go my way (goes bulls up) or ranges I will collect est. $1250
- Would prefer this to be a 4 weeks contract, but 18 Sep (8 Weeks) had a better price for my trade structure
Sold 80 Puts @ 0.26, Strike 12
Bought 10 Puts @ 0.73 Strike 14
BP block: 10k
Max gain - est $3222
Planned Minimum gain - est $1250
Trade closed: target reached:
Target reached at +USD 1292 :)