Hello Investors,
Today we did a class on trading outlooks. We like to classify them from +3 (very bullish) through to -3 (very bearish). We entered into a new trade today in Royal Caribbean (RCL). It would fall in the -2 category based on the construction. In addition, we discussed how to trade put ratio backspreads.
New Trade:
Royal Caribbean (RCL) Put Butterfly
Buy to open: RCL Sep 18th (monthly) 45.00 strike puts (ratio of 1)
Sell to open: RCL Sep 18th (monthly) 35.00 strike puts (ratio of 2)
Buy to open: RCL Sep 18th (monthly) 25.00 strike puts (ratio of 1)
Limit debit: 1.86
Max risk = 1.86; Max reward = 8.14
Have a great week!