Marriott bullish inclined defensive options - 28 Aug ExpiryThe hotel industry is one of the weaker sectors due to COVID-19. 8 Months deep into the pandemic price volatility has stabilised. With earnings recently over Implied volatility seems to have returned to the previous range. I don't think people will be rushing into this sector anytime soon.
This is perfect for my options strategy which does not do so well against price gaps or rapid movements.
after a few months of trading ETFs with this defensive strategy, I have decided to widen my opportunities. Trading stocks at key price points seems like a good extension. The goal is to incline my trade towards the direction of the key price point break. If it doesn't break, I still get to collect the spread.
This is a defensive trade. If price goes bullish, I have a chance to hit my max gain of est. $1668. But I must close the contract before it rises beyond my breakeven point where I will start losing.
If prices don't go my way (Bearish) or ranges I will collect est. $520
Sold 14 Calls @ 0.64, Strike 110
Bought 1 Call @ 3.70 Strike 98.5
BP block: 13k