COH/Yodi - That one is tough as they really blew it with their shoes and you have to wonder what kind of write-offs or whatever are happening there. I thought they were nice but apparently I have old-fashioned tastes. Still, this ($30) is where we went long off our old Buy List in the old LTP and we took $40+ and ran - as was wise - not even knowing the shoes would fail. The Jan $30s are $2.45 so about your net on the spread and you can invest in rolling to the 2017 $28s ($5.20) and either plan to sell $35s ($2.35) now or after the short Jan $35s expire. Meanwhile, you can also sell the $23 puts for $2 and that gives you loads of room and an almost free spread.
I like that one enough for the LTP, in fact:
- Selling 15 COH 2017 $23 puts for $2 ($3,000)
- Buying 20 COH 2017 $28 calls for $5.20 ($10,400)
- Selling 20 COH 2017 $35 calls for $2.35 ($4,700)
That's net $2,700 in cash on the $14,000 spread that's $4,000 in the money at $30. At around $35 I'd want to sell some calls but we'll cross that bridge when we come to it. TOS says just $3,500 in margin so super-efficient on this one!
