#SyntheticStock – He’s got me convinced…LOL. Staying small so not a lot of risk.
Sold GS JAN 18 2019 260.0 Puts @ 22.50
Bought GS JAN 18 2019 260.0 Calls @ 25.35
Bought GS JAN 18 2019 250.0 Puts @ 18.08
This gives a net debit of 20.93 for the Jan 2019 position. Add the 10.00 point max downside and get a max loss possibility of 30.93. Based on that, and the 51 weeks remaining in the trade I only need to average about 61 cents per week in sales to cover the absolute worst case scenario.
Giving it a lot of breathing room in the beginning until I see how the squeeze plays out:
Sold GS FEB 16 2018 275.0 Calls @ .95