Option Journey #21
As ETSY has been down for the past few days, I wanted to go back to ETSY for a few days. It was top at $198, now is around $180. It went down to the $170 level and bounce back up. For that reason, I had confidence that It will not go below the $160 level, therefore, I made a larger spread with it. Generally, I go with the $5 spread or less, but in this case, I went with the $10 spread for it. If I am wrong on few days, I will close out the trade due to too high of the spread or I will roll down even further month out to mitigate the risk is losing the money in this trade. When the stock price hit's $170 mark, I will decide whether I will close it or roll it down for the next week depends on how many days left.
The second trade I did was a RIOT. It is directly related to the cryptocurrency. It holds the majority of assets in Bitcoin. Others they hold as cash. It is a very small company, but it contains really high volatility. It is around 170 vix at the moment. For that, It is a 50/50 shot that I will make money or lose money in 8 days. I am Risking $1300 for a $760 gain. If I am right, I will get paid $760 vs if I am wrong I will lose $1300. As long as bitcoin is this bullish, I believe it has a higher chance of success. I might do leap call in the future for this stock, but it just went up too much today.
LCA has been merged with one company and the symbol of the company has been changed to GNOG. Click here to find out the info.
Close Trade:
none
Open Trade:
ETSY 10 Jan 8 155/165 Put Vertical @ 0.8797
RIOT 10 Jan 8 14/16 Put Vertical @ 0.7697
Current Position:
this week none
next week
JPM 10 Jan 8 117/120 Put Vertical @ 0.8297
SNAP 10 Jan 8 48/50 Put Vertical @ 0.5897
ETSY 10 Jan 8 155/165 Put Vertical @ 0.8797
RIOT 10 Jan 8 14/16 Put Vertical @ 0.7697
More than two weeks out
GNOG 10 Jan 21 22.5 / 25 Put Vertical @ 1.2196 (formerly LCA)
NNDM 10 FEB 21 7.5 Naked Put @ 1.4748
cover call
TSLA 1 Jan 22 750 Cover Call @ 17.88
TSLA: 120 shares
======================================================================= #sellingPut #optiontrade #sellingput #putvertical #PutVertical #trading #stock #option ======================================================================= I am not a financial advisor. Any trades listed are my own personal trades and meant for educational purposes only. Option trading bears high risk and high return strategy for trader.