Bear Call Spread Sell 195 Call strike and Buy 200 Call Strike, Exp: Nov 28 (45 DTE) for no less than $1.55
Trade has about 67% probability of profit
Taking advantage of high IV rank of 40
Credit received = $155
BP Effect = $345
Max Loss = (5 - 1.55) * 100 = $345
Breakeven = 195 + 1.55 = $196.55
Percentage return: (155 / 345) * 100 =44.928%
Exit Target: 40% - 70% of Credit received ($62 - $108.50)
Stop-loss: close if price threatens the short strike and cost to buy back exceeds 50% of max loss or predefined dollar loss,
Exit no later than 7 days before expiration
JNJ has seen a significant rise and it at ATH, RSI indicator also shows JNJ being overbought
Trade is just for educational purposes and willing to learn consistent option trading
Trade has about 67% probability of profit
Taking advantage of high IV rank of 40
Credit received = $155
BP Effect = $345
Max Loss = (5 - 1.55) * 100 = $345
Breakeven = 195 + 1.55 = $196.55
Percentage return: (155 / 345) * 100 =44.928%
Exit Target: 40% - 70% of Credit received ($62 - $108.50)
Stop-loss: close if price threatens the short strike and cost to buy back exceeds 50% of max loss or predefined dollar loss,
Exit no later than 7 days before expiration
JNJ has seen a significant rise and it at ATH, RSI indicator also shows JNJ being overbought
Trade is just for educational purposes and willing to learn consistent option trading
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.