JETS ETF Call Options With Bears Protection
JETS invests in both U.S. and non-U.S. companies involved with the airline industry, including passenger airlines, aircraft manufacturers, airports and terminal services companies.
Due to COVID-19 it's one of the weakest sectors and from my observations it seems to fall first and raise last vs the S&P 500. As countries are slowly opening and getting a grip on the virus or at least are forced to push forward to avoid further economic impact, JETS ETF could potentially move up. I am around 70% inclined to this, especially since price seems to have breakthrough a range of 15.79 - 11.28
To protect myself from bearish moves. I loaded up on call contracts at a higher strike. This means that no matter how low price goes I will always get +$875. However my profits are capped at strike 20.99 with my risk being price moving upwards beyond strike 21.45. The plan of course would be to close the trade before.
Sell Calls 31 July - Strike 21, 0.3, Qty 45
Buy Calls 31 July - Strike 18, 0.95, Qty 5
Due to COVID-19 it's one of the weakest sectors and from my observations it seems to fall first and raise last vs the S&P 500. As countries are slowly opening and getting a grip on the virus or at least are forced to push forward to avoid further economic impact, JETS ETF could potentially move up. I am around 70% inclined to this, especially since price seems to have breakthrough a range of 15.79 - 11.28
To protect myself from bearish moves. I loaded up on call contracts at a higher strike. This means that no matter how low price goes I will always get +$875. However my profits are capped at strike 20.99 with my risk being price moving upwards beyond strike 21.45. The plan of course would be to close the trade before.
Sell Calls 31 July - Strike 21, 0.3, Qty 45
Buy Calls 31 July - Strike 18, 0.95, Qty 5
Trade closed: target reached:
Love this trade, even though price didn't go up, I collected my $875 :)