Officially, for the OOP, we are adding a trade on IMAX:
- Selling 5 2017 $30 puts for $3.20 ($1,600)
- Buying 5 2017 $28 calls for $7.50 ($3,750)
- Selling 5 2017 $35 calls for $4.00 ($2,000)
That's net $150 in cash on the $3,500 spread. Worst case is we own IMAX for net $30.30, best case is we make $3,350 (2,233%) in a year.
Also, as a Top Trade Alert, we are putting out a note on IBM, which was our runner-up Stock of the Year for 2016 (to UNG):
- Selling 2018 $110 puts for $10.50 ($1,050)
- Buying 2018 $100 calls for $34.50 ($3,450)
- Selling 2018 $120 calls for $20.50 ($2,050)
This one is net $350 on the $2,000 spread so the upside is $1,650 (471% on cash) and the downside is owning IBM at net $113.50.