#SyntheticStock #IRA -For lack of anything better to do I’m putting on a cheap long shot that a buddy of mine has been talking about for awhile. It caught a downgrade this morning so pulling back enough for an entry.

Going synthetic long stock with the 2019 LEAPS and buying protection slightly below that. With the skew the initial position was only a .06 debit. Selling front month calls also a couple weeks out.

Bought to Open HIMX JAN 18 2019 10.0 Calls @ 2.49
Sold to Open HIMX JAN 18 2019 10.0 Puts @ 2.99

Bought to Open HIMX JAN 18 2019 5.0 Puts @ .56

That’s .06 out of pocket but still a 5 dollar downside risk if this thing goes to zero….(you never know)

Then:

Sold to Open HIMX OCT 27 2017 10.0 Calls @ .25

Capping my upside slightly but even if HIMX goes nowhere and the front months average .10 it’s still a nice winner by the end of the run…