'Jade Dragon' trade idea for 1/13/23 expiration.
Short put + call credit spread, such that the premium from the put sold covers the max loss of the call spread, hence no risk to upside.
*$66 credit with price above $32 (once call spread is closed for $100 debit).
*Assignment to buy 100 shares @ $25 per share if share price is below $25 on expiration. In which case the share cost basis would be $23.34, (which is 15% lower than current price as of 12/9/22). If assigned, the next step would be to sell calls at strikes above $24 until assigned to sell.
*Trade based on the hope/assumption that RIVN is down at support and is probably not going to take off to infinity anytime soon (or at least not in the next 30 days!).
Short put + call credit spread, such that the premium from the put sold covers the max loss of the call spread, hence no risk to upside.
*$66 credit with price above $32 (once call spread is closed for $100 debit).
*Assignment to buy 100 shares @ $25 per share if share price is below $25 on expiration. In which case the share cost basis would be $23.34, (which is 15% lower than current price as of 12/9/22). If assigned, the next step would be to sell calls at strikes above $24 until assigned to sell.
*Trade based on the hope/assumption that RIVN is down at support and is probably not going to take off to infinity anytime soon (or at least not in the next 30 days!).
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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.