Trade Alert 7/27/2023

 

We added a 1×2 put spread in Disney (DIS). This would require us to buy 100 shares more if the stock makes a sharp move lower. Something that we are willing to do. If you are NOT willing, then perhaps a butterfly or some alternative or simply skip the trade. The company reports earnings before this expiration date. Buy to open: DIS Aug 18th (monthly) 86.00 strike put (ratio of 1) Sell to open: DIS Aug 18th (monthly) 81.00 strike put (ratio of 2) Debit: 0.78 – this order has filled Probable risk = 0.78 or $78.00 Max reward = 4.22 or $422.00 Max Risk = Owning 100 shares of stock at a cost basis of 76.78 (losses grow below this price)We have also added a very short-term Aug 1st expiration (5 day trade) in QQQ. Details as follows: Buy to open: QQQ Aug 1st (weekly) 384.00 strike put (ratio of 1) Sell to open: QQQ Aug 1st (weekly) 378.00 strike put (ratio of 2) Buy to open: QQQ Aug 1st (weekly) 372.00 strike put (ratio of 1) Debit: 1.25 – this order is still pending, if we don’t get filled today it is to be canceled going forward Max risk = 1.25 or $125.00 per spread Max risk = 4.75 or $475.00 per spread