Broke ATH, good long entry on the close if >306.
Long Calls work well, but I will be using Call Debit Spreads IAW my risk tolerance & time horizon.
Call Debit Spread
Cash Collateral
Levels on Chart
SL < 305.86
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
10/29 307.5C
SELL
10/29 320C
R/R & Breakevens vary on fill.
The...
Ticker: WMT
*This trade is a little more complex, than the others, as it has 2 separate spreads, but stick with me
Position: 1st leg
- Call debit spread
- 21st Feb 2020 expiry
- Long 114 Strike call = $4.85 - D = 0.99
- Short 115 Strike call = $4.25 - D = 0.95
- Net cost of 1st leg = $0.6
Position: 2nd leg
- Put debit spread
- 21st Feb 2020 expiry
- Long...
With the financials at a multi-year double top, a bet that financials announcing next week will disappoint in the aggregate in this easy/easing rate environment.
Metrics:
Max Profit: $96/contract
Max Loss: $104/contract (which is what you'd pay to put this on).
Break Even: 30.96 versus 30.69 spot
Notes: Max profit is realized on a finish below the short strike...
... for a .21/contract debit. (Late Post)
Metrics:
Max Profit: $179/contract
Max Loss: $21/contract
Break Even: 129.79
Delta/Theta: -6.26/-.43
Notes: Put this on in the closing minutes of Friday's session. Looking for a move back to the short-term range lows ... .
Still anticipating ranging markets. Opened a couple Bear/Credit Call Spread at $211/$216. I'm using a $5 spread because the R/R is better than $10 spread.
Credit = $2.25 (net $2.14)
Break even = $213.14
August Expiration*
* I likely will not hold on till expiration. I would use a SPY price drop to take profits and remove the risk.
Let me start off first my showing you the metrics for the posted setup. It's a May 20th SPX 1880/1900 long put vertical:
Probability of Profit: 7%
Max Profit: $1849/contract (if price finishes below 1898.47)
Max Loss/Buying Power Effect: $151
Well, that just plain sucks. The probability of profit is a mere 7%. How am I possibly going to make any money on that...
