OK Yoga Pants - I may short you. $LULU
Updated
"BUY +1 1/2 BACKRATIO LULU 100 (Weeklys) 2 JUL 20 315/290 PUT @.05 LMT" - BP reduction $2500 with $50 Debit
Is a starting point. If you cannot construct this spread and know what your risk is. DO NOT GET IN.
Is a starting point. If you cannot construct this spread and know what your risk is. DO NOT GET IN.
Note
Take a look at what happens in this scenario. 1. LULU want to run up to 380 - You lose the $50 debit.
2. LULU runs down to 260 - You make $1300
3. LULU starts consolidating - You would lose $2500. But that can all be mitigated if you close the position 10 days before. Your loss would be in ($200-S600)
The world of BackSpread People.
Note
Ofcourse, I get in It has to consolidate to Earning. ;)Note
Only One week left. So make a decision ppl. When you have made $9 for every $0.5 = 1800% Win. You want to hope for more?Note
Sorry - Mistake ppl. I got too excited to close this. Apparently I bought more. Sorry.... Glad I filled on 1 contract only. Now. I need a monumental move to make this work.
For those who are in it, still make a decision. The way I would advise you to manage this would be to close the profitable side and then worry about the credit side.
In a back spread, you have 1 Long and 1 Credit spread. Close the Long for a profit and wait for the market to swing to close the credit spread.
Note
Need this to drop more, Huh! Mistake costs. :)
Uday C Santhakumar
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