Here’s a new one I just added, this one has less than zero risk at the onset–it’s hard to get this design but I really like it, call premium is elevated due to earnings the week before. Notice the tight put, less than $2 away from stock purchase price, at close to 1/3rd the call premium. Good risk control here. The put roll might be tricky though with earnings looming in the new roll cycle, but we’ll deal with that the week of Nov 8, if not sooner.
TGT
Bought 300 shares @ 111.84
Bought 3 Nov 8 110 put @ 1.65
Sold 3 Nov 29 112 Call @ 4.70
Initial max risk is -$363, meaning I make $363 on a crash in the initial timeframe (Nov 8 expiration).
Earnings 11/20, Ex div 11/19
update: one thing though, the delta on this is only 36 on 300 shares, that’s usually lower than I like, I like around 25-30% delta. I can always sell some put spreads to bump up the delta if I want.
Options Bistro 