... long call diagonal. Comments: Here, I'm preliminarily pricing out a bullish assumption GLD setup, buying the back month 90 delta and selling the front month at-the-money call. I'd prefer to deploy this at that obvious support level at 160, which has resulted in some buying interest previously. If that occurs, I'd have to tweak the strikes slightly, selling...
* -- long call diagonal ... for a 6.85/contract debit. Comments: I wasn't entirely satisfied with what I would be getting paid for my go-to strategy of selling short puts in this, so doing something a little more directional here. Buying the back month 89 delta, selling the front month 37 here and paying 6.85 for an 8-wide with a max profit metric of 1.15...
If you trust Bill Ackman, his new SPAC Pershing Square Tontine Holdings looks like a great candidate for a very short-term covered call position. Ackman has been on fire lately. Last year his flagship fund Pershing Square Holdings was up 58% and this year to date he’s up 46% after he turned a $27 million hedging position into $2.6 billion as markets tanked in...
... for a 1.38/contract debit. Metrics: Max Loss: $138/contract Max Profit/Return on Capital: $62/contract; 44.93% Break Even: 6.38/share Notes: Another small, bullish assumption engagement trade with the back month at the 76 delta, front at the 49, and a break even at or below where the stock is currently trading.
DISH announces earnings on Tuesday before market open and is a state of high volatility (>50%). While you can naturally go with the plain Jane volatility contraction play around earnings (short strangle), there might be an opportunity here to catch it at significant lows while simultaneously taking advantage of risk premium present here which will lower your cost...
... for a 1.66/contract credit. Metrics: Probability of Profit: 49% Max Profit: 1.66 ($166/contract) Max Loss: 14.34 (which equals the cost basis in any stock I'm assigned) Break Even: 14.34 Notes: Put on at the 70 delta strike, this is a synthetic covered call with a buying power effect that is far smaller (~20% of the max loss or $246/contract) as compared to...