#SyntheticStock #IRA – 2020 LEAPS out so plenty of time to sell the crap out of this one. Earnings in a couple weeks so some good premium to get started with…

Synthetic stock in Jan 2020 for .58 credit:

Sold DIS JAN 17 2020 100.0 Puts @ 11.65
Bought DIS JAN 17 2020 100.0 Calls @ 11.07

Applying the .58 credit to help buy the disaster puts:

Bought DIS JAN 17 2020 90.0 Puts @ 7.18

In the 2020 position for 6.60 debit. Disaster puts are 10 points under the synthetic so max risk in the entire trade is 16.60. Should easily sell 4 to 5 times that much in front month weeklies if DIS goes nowhere and the trade runs the full 116 weeks. That works out to only needing to sell 14 cents a week to cover max loss.

So:

Sold DIS NOV 3 2017 99.5 Calls @ .36