Hello Traders,
We debated this trade a bit over the weekend. The stock had a huge bullish engulfing candlestick on Friday. Today it is doing the “price overlap” minor dip that we think is an opportunity to take profits. It would be reasonable to take profits on 1/2 of the trade (if you have more than 1 contract) and let the other half run. We will discuss tomorrow.
Sell to close: UAL July 17th (monthly) 32.00 strike puts (ratio of 1)
Buy to close: UAL July 17th (monthly) 27.00 strike puts (ratio of 2)
Sell to close: UAL July 17th (monthly) 22.00 strike puts (ratio of 1)
Credit: 1.32
Profit of +0.62 or +88.5% return.