DEC1 Options play on WMT

25 11 0
Selling the recent high of $87.07
SOLD -1 VERTICAL WMT             100 (Weeklys) DEC2 14 88/91 CALL @.20
Ok, I got inspired. Opened a debit put spread in WMT Jan 82.5 / 77.5
What was your entry cost?
baerrus PRO OptionsTrader
$0.61 for WMT Jan put spread 82.5 / 77.5
As you say, "Low probability but great risk/reward" at only 72% probability but unfortunately not Theta positive until WMT reaches $80.36, which means it almost needs to close the Earnings gap up.

Lets see how it plays out for you, the race between price movement and Theta decay.

baerrus PRO OptionsTrader
Hei, you seem to know what you are doing. May I invite you to http://optionsforum.net I run that forum and it is completely dedicated to options trading. It is a lot easier to share ideas than here. You can post your great charts there in a click.
Did you just open a credit spread in 88/91 Calls? I like the idea. Dont like that you are only taking a premium of $0.20 per share
Yes that is the credit spread I sold.

Lot's of people don't like the small amount credits BUT that means I have a HIGHER probability of success which as it is now it has 94% probability of success and already that spread is now just .06...
baerrus PRO OptionsTrader
I really like the setup. Playing the same move from the downside now. Low probability but great risk/reward.
It means I am in and out of the trade between yesterdays entry and next Friday so my payday is just around the corner and with it currently at .06 I've already been paid +70% of my trade already, and I like that.
baerrus PRO OptionsTrader
The Key is you found a great potential reversal situation. How to exploit it is matter of style. For income I use different setups. In a case like this where a possible reversal is present I like to go for bigger bang so to speak :)... just my 2c
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