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PSA/Yodi – You like those storage trades, don't you? I like them in general but only making $7.50/share so I'd rather wait for a better pullback. UCTT is a nice, boring company that's a great value. I like that for the LTP:
- Sell 10 UCTT 2020 $20 puts for $5.75 ($5,750)
- Buy 20 UCTT 2020 $15 calls for $9.50 ($19,000)
- Sell 20 UCTT 2020 $22.50 calls for $6.50 ($13,000)
That's a grand total of $250 out of pocket on the $15,000 spread that's almost entirely in the money. Good for a $14,750 (5,900%) gain on cash if it manages to go up $1.42 in 2 years and TOS says the margin is just $1,898 – so a very efficient way to make $15K in two years!
Good call Yodi.