RBLX
'Jade Lizard' Trade
Call Credit Spread:
+1 $47 call 2/9
-1 $46 call 2/9
Short Put:
-1 $38 put 2/9
Credit received: $190
Outcomes @ Expiration:
1) If share price is above $47, then $90 profit (close call credit spread for $100).
2) If share price is between $38 and $47, then $190 profit (credit received).
3) If share price is below $38, then I will be assigned to buy 100 shares @ $38/each. Next step: sell calls until assignment.
(With a jade lizard, there's no risk to the upside).
If I have the opportunity to close early I might (due to earnings near the tail end), but I really don't mind assignment to buy the shares. Happy to take the gamble for the premium.