CELG

#SyntheticStock – Saw it on @smasty ‘s update and like the looks of it. Nice income and a tight squeeze also. Going out a little further just in case more time is needed to cover max loss.

Synthetic Stock:

Sold CELG JUL 20 2018 105.0 Puts @ 9.08
Bought CELG JUL 20 2018 105.0 Calls @ 8.28
Bought CELG JUL 20 2018 100.0 Puts @ 6.65

This gives a net debit of 5.85 for the Jul 2018 position. Add the 5 point max downside and get a max loss possibility of 10.85. Based on that, and the 24 weeks remaining in the trade I only need to average about 45 cents per week in sales to cover the absolute worst case scenario.

So:

Sold CELG FEB 9 2018 106.0 Calls @ 1.11