Hello Investors,
Today we added two new positions to the portfolio. The CEG trade is one that could potentially evolve into a 1×2 put spread if and when the stock experiences a sharp move lower. If the stock declines in a more gradual fashion, that outcome becomes less likely.
The C trade is based on what we believe is a bullish turn developing within the financial sector. We particularly like the overall trade structure from a risk/reward/probability standpoint.
The details are as follows:
Buy to open: C July 17th(monthly) 130.00 strike call (ratio of 1)
Sell to open: C July 17th(monthly) 140.00 strike call (ratio of 2)
Buy to open: C July 17th(monthly) 150.00 strike call (ratio of 1)
Debit: 1.55
Max risk = 1.55 or $155.00 per spread
Max reward = 8.45 or $845.00 per spread
Buy to open: C July 17th(monthly) 130.00 strike call (ratio of 1)
Sell to open: C July 17th(monthly) 140.00 strike call (ratio of 2)
Buy to open: C July 17th(monthly) 150.00 strike call (ratio of 1)
Debit: 1.55
Max risk = 1.55 or $155.00 per spread
Max reward = 8.45 or $845.00 per spread
Buy to open: CEG Aug 21st (monthly) 240.00 strike put (ratio of 1)
Sell to open: CEG Aug 21st (monthly) 210.00 strike put (ratio of 2)
Buy to open: CEG Aug 21st (monthly) 180.00 strike put (ratio of 1)
Debit: 4.55
Max risk = 4.55 or $455.00 per spread
Max reward = 25.45 or $2,545.00 per spread
Sell to open: CEG Aug 21st (monthly) 210.00 strike put (ratio of 2)
Buy to open: CEG Aug 21st (monthly) 180.00 strike put (ratio of 1)
Debit: 4.55
Max risk = 4.55 or $455.00 per spread
Max reward = 25.45 or $2,545.00 per spread
Have a great week!