Discuss your plays for the upcoming week or closed positions from the prior week. A good strategy post should include several of the following elements:
- the underlying ticker
- any upcoming catalyst
- the specific strikes and expirations in your position
- trade plan
- purpose of trade
- position management
- premium paid or collected
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Rolled HOOD calls and RIOT stangles up and out today. Lots of movement in these two on heavy volume.
Continuing my bearish thesis on CVNA. It had only one profitable quarter since 2017 and should not have a $5 billion market cap. My strategy of choice is put front ratio spreads to take advantage of both price pullbacks and IV collapse. My price target is $24 for the upcoming week.
BTO 7/7 $26P X1 STO 7/7 $25P X2
I’ve been running this for a couple of weeks successfully. When the short strike is breached, I am rolling it out a week and down several strikes for a credit, while closing the bear put spread for a credit at the same time. So generally collecting credit three times; at open, when rolling the short put, and when closing the spread. I’ve so far been able to close the rolled put after a day or two due to either theta decay or rolling it into a new front ratio.
More of the same tomorrow, July 5th, with CVNA put ratio spreads. Hopefully be able to close out a few rolled short puts from last week.
Considering a ZEBRA on MVIS with an 8/18 expiration. BTO 2X 3.50C and STO 1X 4.50C costs 182 for net 100 delta. The equivalent shares would be 449, so that’s 247% leverage over the next 45 days. The trade plan would be 10 positions with a stop loss when MVIS hits 4.29 to limit losses to 0.5% of portfolio value. Close early for a 100% gain if MVIS hits 6.31, otherwise let it ride.