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Thursday, March 28, 2024

Top Trades for Thu, 08 Mar 2018 16:00 – CHL

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Top Trades for Thu, 08 Mar 2018 16:00 – CHL
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CHL/QC – We never did add them officially, did we?  If you sold the June $50s, those are now $5 and the Sept $47.50s are $4.20 so 0.80 to roll down $2.50 isn't bad and I'd keep an eye on it but I'd tray to wait for Jans to come out to get a better roll (premium-wise).

  

Meanwhile, we missed $45 but, in the OOP, let's:

  • Sell 5 CHL Sept $47.50 puts for $5 ($2,500) 
  • Buy 10 CHL Sept $40 calls for $6.50 ($6,500)
  • Sell 10 CHL Sept $47.50 calls for $1.70 ($1,750)

That's net $2,250 on the $7,500 spread that's $6,000 in the money at the moment.  At $47.50 we make $5,250 (233%), which is great money for 6 months' work!  

In the LTP, we're doubling it to 10 short and 20 of the spreads.