Webinar Trade Idea on MU (from Batman) for the Butterfly Portfolio:
- Sell 10 MU 2022 $40 puts for $8 ($8,000)
- Buy 20 MU 2022 $40 calls for $14.75 ($29,500)
- Sell 20 MU 2022 $55 calls for $8.25 ($16,500)
- Sell 10 MU July $50 calls for $2.20 ($2,200)
- Sell 10 MU July $42 puts for $2.10 ($2,100)
That's net $700 on the $30,000 spread that's $12,000 in the money to start and we're doing a 1/2 sale to generate income which, in the first 2 months out of 18, is a $4,300 return on our $700 investment. The put sale is aggressive but only net $2,197 in margin and MU is a fantastic company to own for the long-term.
I'm very excited about this trade as the upside potential on the spread alone is $29,700 and if we sell 8 more sets of puts and calls, that's another potential $34,400 - that's a very nice return on a $700 outlay!
Pictures/Nom - The link is up in the main post @ https://www.buzzfeed.com/jonmichaelpoff/reopening-in-countries-around-the-world?origin=flipboard
