Another penny on /RB - Good for $500 so far - don't be greedy on a Friday - $100 trailing stops.
/CL at $62.50 - nice gains now.
EA/Kgab - I think the business is in flux and not really growth so not one I'd play but there is that interesting ESports thing going on and 2.5M people watched their Madden Bowl Game recently, which is pretty good engagement and up from like 400,000 last year. There's a lot of TV shows that don't get 2.5M views. So consider that a bonus to their $1.3Bn in earnings and $27Bn ($92.50) doesn't seem that crazy but "doesn't seem that crazy" isn't why I buy something.
Assignment/Yodi - On the other hand, if I get assigned, then it's just time to roll and I didn't have to pay a a spread or fee to get out of my short put - so I usually just wait unless there's somewhere else I clearly want to be on the put side.
T/Yodi - I like T better than VZ and T just bought TWX so content is a nice add to the steady telco biz and VZ is pumped up from sticking FTR with CA, FL and TX but that's 3 big states they won't get earnings from down the road so T remains irresistible to me at $30.63 with their $2.04 (6.5%) dividend so, as a new play on T:
For the OOP:
- Sell 10 T 2021 $30 puts for $3.75 ($3,750)
- Buy 20 T 2021 $28 calls for $4 ($8,000)
- Sell 20 T 2021 $35 calls for $1.15 ($2,300)
That's net $1,950 on the $7,000 spread so $5,050 (258%) upside potential in 20 months and only $5,500 in ordinary margin makes this a pretty efficient way to make $5,050.
For the LTP:
- Buy 2,000 shares of T for $30.63 ($61,260)
- Sell 20 2021 $30 puts for $3.75 ($7,500)
- Sell 20 2021 $30 calls for $2.85 ($5,700)
That's net $48,060 and we get called away at $60,000 (but we'll probably roll to stay in) for an $11,940 (25%) profit plus we get 6 dividend payments for about $3 ($6,000) for another 12.5% so 37.5% over 20 months makes it a nice thing to do with all the cash we have laying around.
