khayong
commented on a stock · Jul 13, 2021 21:04
Actually, I am long.
$UP Fintech (TIGR.US)$ When the stock price is around $25, I sold the $30 PUT for $7.50 premium. If the stock price rises above $30 at expiration, the profit will be the $7.50 premium. But if the stock price falls below ($30-$7.50) $22.50, there will be a loss. So I bought the $25 PUT for $1.60. Now my position is zero risk and won't incur a loss.
The maximum profit is 7.50-1.60=5.90
The minimum profit is 0.90, calculated by subtracting 5.00 from 5.90.
In this week, no matter how absurd the stock price falls, there will still be a profit of $0.90. Of course, I hope the stock price will rise.
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OrangeBanana : nice bullish put spread but this involves buying the 25P at $1.6 so it involves some element of luck being in the 25P position before the stock price tanked and selling the 30P after it tanked
OrangeBanana : but congrats on the gains wish you max profits
khayong OP : Yes, I've always been unlucky, and it's even harder to maintain my luck for a month. The stock price is going up and down, and when it is in our favor, we need to deploy it quickly.
The Bull Put Spread tutorials on the market are all about buying and selling PUT at the same time, and you will lose money. If you set aside time to open a position and add a little bit of luck, you can guarantee profit.
Dream is Possible : When will your sale expire put
khayong OP : This prayer expires on Friday.
Dream is Possible : They're not trading at the same time. At the price of 25, a 30 yuan put is about 5 yuan, not as high as 7.5. Are you selling a 30 yuan put at the current price of $22, and then buy a 25 put at the current price of $25