8.8 C
New York
Thursday, March 28, 2024

Top Trades for Tue, 10 Nov 2020 11:50 – IBM

0
Top Trades for Tue, 10 Nov 2020 11:50 – IBM
psw-placeholder

IBM/Ravi – From scratch I would go with:

  • Sell 5 IBM 2023 $100 puts for $20 ($10,000)
  • Buy 15 IBM 2023 $110 calls for $20 ($30,000)
  • Sell 15 IBM 2023 $135 calls for $10 ($15,000) 
  • Sell 5 IBM Jan $120 calls for $4 ($2,000) 

That's net $3,000 on the $37,500 spread so that's $34,500 (1,150%) upside potential at $135, which is not very far away.  The short calls can be rolled and I don't think IBM will explode and, of course, any time IBM doesn't gain a few % in a quarter, you lower your basis. 

Also nice that we're starting out $10,500 in the money so it's another Trade of the Year contender with that kind of leverage!