LOCO is supply hunting, since the announcement of the special dividend. $16.70 & 11.72 are where supplies are. Depending on how you trade, you can be a directional trade and be long, or if you're just interested in the dividend here is a strategy below to hedge your risk.
The strategy requires a minimum of buying 100 shares, and additional positions need to be in increments of 100 shares -
Buy 100 shares
(-1) At the money calls
(+1) at the money puts
In the example above, your call/put options should be free because the call would have high IV and the credit would cover the cost buying the put.
100 shares x 1.50 (dividend) = $150
each share at the moment is = $11
The strategy requires a minimum of buying 100 shares, and additional positions need to be in increments of 100 shares -
Buy 100 shares
(-1) At the money calls
(+1) at the money puts
In the example above, your call/put options should be free because the call would have high IV and the credit would cover the cost buying the put.
100 shares x 1.50 (dividend) = $150
each share at the moment is = $11
Note
opcalc.com/OgwNote
ABOVE IS A STRATEGY CALCULATOR
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.