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Saturday, January 11, 2025

Top Trades for Thu, 03 Oct 2019 11:39 – LABU

You can sell the TZA 2022 $60 calls for $14 and the TNA 2022 $60 calls for $12 (shows you which way sentiment is running) so that's $26 collected against the risk of one of them hitting $90, where you start to get in trouble.  If you could ride out a spike against you - it's a very high-probability play!  

LABU/DC - I'd make it an income play:

  • Sell 5 LABU 2022 $25 puts for $11 ($5,500)
  • Buy 15 LABU 2022 $30 calls for $13 ($19,500)
  • Sell 15 LABU 2022 $45 calls for $9 ($13,500) 
  • Sell 3 LABU Jan $34.87 calls for $3.80 ($1,140) 

That's a net $640 credit on the $22,500 spread and you should be able to pick up at least $1,000 a quarter for 8 quarters so $8,000 even if you don't end up making money on the long spread.  

That's good enough for a Top Trade!  

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