So I have a long put spread way out in time (March 2019) Today on earnings TSLA is up big and instead of adding by spending money I am going to sell calls instead. I went to October because I would like some time for the hype to wear off and this short rivalry to wear off some. The ratio fly is a trade I like because it takes advantage of skew. The 1:3:2 call ratio I placed in October has 1 long call at the 350 strike, 3 short calls at the 355 strike, and 2 long calls at the 360 strike. This trade is risking $345 and can make $655 (approx. if it pins ) but the trade was entered for a credit of 1.65 and I put in a G.T.C. order to close for .75 which is the best case scenario. Wish me luck!
Dagangan aktif:
Opened a separate trade in a different account, selling a 195/190 put ratio in September for 1.90 credit. This creates a strangle of sorts......but will not collect more than the risk to the upside so I am still hoping TSLA keeps coming down and all the drama is keeping all the options "super-bid" so time will have to decay these options in order for them to be closed for a profit.