Today we have added a couple of 1×2 put spreads in CCJ & UBER. We had one of these positions in these stocks through last month’s cycle. This position has the potential to end up owning 100 shares of stock. Buy to open: UBER May 15th (monthly) 70.00 strike put (ratio of 1)
Sell to open: UBER May 15th (monthly) 62.50 strike put (ratio of 2)
Debit: 0.66
Probable risk = 0.66 or $66.00 per spread
Max risk = owning 100 shares at 55.66/share at May expiration
Max reward = 6.84 or $684.00 per spreadBuy to open: CCJ May 15th (monthly) 100.00 strike put (ratio of 1)
Sell to open: CCJ May 15th (monthly) 90.00 strike put (ratio of 2)
Debit: 0.05
Probable risk = 0.05 or $5.00 per spread
Max risk = owning 100 shares at 80.05/share at May expiration
Max reward = 9.05 or $905.00 per spread