Jeff 8:44 am on Monday, July 29, 2019
Tags: Earnings ( 3,108 ), JadeLizard ( 130 )

BYND trade

#Earnings I have not traded this one yet. Thinking of Aug 2nd #JadeLizard, sell 180 put, and sell 250/252.5 call spread. Going for 5.45 credit. No upside risk. Thoughts?

matt0311 10:31 am on Monday, July 29, 2019

Not a bad idea, but your bias must be bullish as your BEP for the put-side is about 175. I think a more neutral way would be to have the call spread nearer to ATM. For example 225/227.50 with the short put down to 170. gives you around 4.20 permium but you POP goes to 88 , not much more I know. Your BEP for the put however would hit 9 Delta. But this is eating a lot of Buying Power!
- Ramie 11:01 am on Monday, July 29, 2019
  
  To preserve BP you can buy a junky put maybe the 150 to cap BP reduction at 3000 vs 18000 for 1 contract. Not sure how this works with portfolio margin, it may not be an issue.
  - Jeff 11:06 am on Monday, July 29, 2019
    
    IB shows the same BP whether I add the 150 put or not: $2,558
    - Ramie 11:11 am on Monday, July 29, 2019
      
      I need to dump Schwab. Shows 18,000 for the short put. Tastworks shows 12,500, TOS/TD shows 4,850.
      - fuzzballl 12:56 pm on Monday, July 29, 2019
        
        Guess it depends on if it’s in a portfolio margin account or not…
        
        Jeff 12:59 pm on Monday, July 29, 2019
        
        Yeah, I’m on Reg T but IB does not charge so heavy for naked puts.

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