LAKE looks to be trying to break out to new all time highs. Looks like larger inverse head and shoulders pattern. With increasing demand for PPE hear their last quarter revenue growth was 85% Q/Q. With the trend continuing in the future this increase in revenue is supportive of setting new highs.
If you sell the 30 delta call for OCT 16 ( the $35 strike for 125 DTE)
and buy the 90 delta call for Jan 15 ( the $10 strike for 216 DTE)
You pay a debit of 8.80 for an effective share price of 10+8.8 = 18.8 vs the 19.7 share price now
Not terrible plus because the front month IV is 106 vs the back month IV of 83 we get some nice theta to collect and actually can make money if IV expands in the back month
Yogigolf
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@420snoop, interesting way to play it. I already have shares from $14.50, usually like just selling short dated covered calls when implied volatility is high.
If you sell the 30 delta call for OCT 16 ( the $35 strike for 125 DTE)
and buy the 90 delta call for Jan 15 ( the $10 strike for 216 DTE)
You pay a debit of 8.80 for an effective share price of 10+8.8 = 18.8 vs the 19.7 share price now
Not terrible plus because the front month IV is 106 vs the back month IV of 83 we get some nice theta to collect and actually can make money if IV expands in the back month