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NaughtyPines
Aug 6, 2021 4:50 PM

Opening (IRA): JETS March 18th '22 16/September 17th 24 LCD* Long

U.S. Global Jets ETFArca

Description

* -- long call diagonal ... for a 6.85/contract debit.

Comments: I wasn't entirely satisfied with what I would be getting paid for my go-to strategy of selling short puts in this, so doing something a little more directional here. Buying the back month 89 delta, selling the front month 37 here and paying 6.85 for an 8-wide with a max profit metric of 1.15 ($115)/contract or 16.8% ROC at max (assuming convergence of price on >24/share). Will work it like a covered call.

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