LB (7/69/16.0%):* Announcing Wednesday after market close.
ARMK (11/56/13.1%): Announcing Tuesday before market open.
TGT (30/39/8.6%): Announcing Wednesday before market open.
LOW (23/39/8.6%): Announcing Wednesday before market open.
HD (17/31/6.7%): Announcing Tuesday before market open.
WMT (24/30/6.4%): Announcing Tuesday before market open.
Pictured here is an LB December 18th (34 days) 29/39 short strangle paying 1.99 at the mid price as of Friday close (.99 at 50% max) with 2 x expected move break evens.
EXCHANGE-TRADED FUNDS RANKED BY BANK FOR YOUR BUCK:
BROAD MARKET RANKED BY BUCK BANG:
* -- The first number is the implied rank or percentile (i.e., where 30-day implied is relative to where it's been over the past 52 weeks); the second, 30-day implied ; and the third, the percentage the December at-the-money short straddle is paying as a function of stock price.
Particularly Vertical spreads.
So after many videos, examples and thought, I went out on my own and tried a Bull Put Spread on NCLH.
My logic was, good company, beat down industry waiting to get back in gear, long period of consolidation... recent pop above resistance...
OK I see/learned now my idea seems sound, but timing of entry was not great...
I bought on the pop so got a poor premium which was better later that week after the pop faded.
Seeing its reaction to support last week I am still bullish in the trade.
The Red and Green (dotted) lines are the 2 puts (S - Red, B - Green). These extend out to the Dec option expiration on the 18th.
Blue and white lines are a small channel offering additional support above my Trade.
The yellow is the support from recent top, was tested with a break last week.
I took a single contract for this 'learning trade', which cost me $200 and had a credit of $55 if price above $17.5 by Dec 18. (27.5% return if it works!)
You seemed willing to assist disciples so I was hoping you might offer any feedback on my 1st Bull Put Spread trade.
Anyway just writing it down (to you) helped me work through it in my mind. Still feel reasonably confident to let it ride.
I have got mixed advice about closing a BPS or leaving it right to expiry... any advice?
Thanks in advance... TBS.
I took a single contract for this 'learning trade', which had a credit of $55.
If price remains above $17.5 by Dec 18, I keep the credit. (27.5% return if it works!)
If the price fell all the way to below $15 (protection) it will cost me cost me $200 max.
From what I learned however, most traders would close immediately if the $17.5 line gets touched.
As that is where the real losses would start to add up.