NaughtyPines

TRADE IDEA: NKE APRIL 1ST 60/70 SHORT STRANGLE

NYSE:NKE   NIKE INC
Here are the metrics for the setup:

Probability of Profit: 73%
Max Profit: $100/contract
Buying Power Effect/Risk: $846/contract; Undefined Risk
Break Evens: 59/71

Alternative: April 15th 56.5/60/69/72.5 iron condor

Probability of Profit: 61%
Max Profit: $100/contract
Buying Power Effect/Risk: $250/contract; Defined Risk
Break Evens: 59/70

Notes: As you can see, there are pros and cons to the short strangle versus the iron condor. The short strangle has a higher probability of profit, but requires more buying power and the risk is undefined. The iron condor has a fairly nice defined risk buying power metric of $250/contract, but the probability of profit is less (and I had to go farther out in time in order to get decent long options; the longs in the April 1st expiration at basically the same strikes were "no bid" on one side or the other ... ). The break evens of both setups are nearly identical, however.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out