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Top Trades for Wed, 31 Oct 2018 15:09 – IBM and GE

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Top Trades for Wed, 31 Oct 2018 15:09 – IBM and GE
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Webinar/Ravi – None that worked so far!  Went long on /RB at $1.76 (4 contracts) and short on /ES at 2,724.50 (2 contracts) and our IBM play was:

  • Sell 5 2021 $120 puts for $20 ($10,000) 
  • Buy 15 2021 $120 calls for $11.30 ($16,950) 
  • Sell 15 2021 $145 calls for $5 ($7,500) 

That's a net $550 credit on the $37,500 spread so $38,050 upside potential (6,918%) if IBM is over $145 in Jan 2021.  

Also, on GE:

  • Buy 5,000 shares of GE for $10 ($50,000) 
  • Sell 50 2021 $10 calls for $2.85 ($14,250)
  • Sell 50 2021 $12 puts for $3.15 ($15,750) 

That's net $20,000 or $4/share and, if assigned another set at $12, the average would be $8 on 10,000 shares – so that's your downside but, if called away over $12, you get $50,000  for a 150% gain.  

AAPL/QC – I hope they miss so we can buy a lot more but no opinion as to whether or not they'll look good enough to hold $2.20 ($1.1Tn) in this environment.

AAPL up 3% today, huge boost for Dow, Nas and S&P: