AZO

#SyntheticStock – Instead of selling an unlimited risk big wide strangle or going pure synthetic I’m trying a little experiment since it’s such a high dollar stock. Thesis (LOL for what that’s worth!) is that the 200ma will hold and there’s not much of a chance of exceeding the all time high this year. (Citi has 790 target on it).

I’m buying a call spread out in Jan 2019 and then selling against it…selling call spreads against it for now since selling naked calls against it results in an additional margin hit since the platform sees it as blocking potential gains.

Bought to Open AZO JAN 18 2019 660.0/760.0 Bull Call Spread @ 40.60 (that’s my max loss)

40.60 with 46 weeks requires .88 a week to cover. Shouldn’t be a problem with this thing.

So:

Sold AZO MAR 9 2018 675.0/700.0 Bear Call spread @ 3.15

Even if the stock goes nowhere selling 3 bucks a week should be a nice winner…