I’ll make it quick this time because it’s actually a continuation of the last trade on Old Republic International folks. As the price was moving sideways and it didn’t look like it was making ambitions do go down, I opened another options trade on ORI. So check it out.
Disclaimer:
The information I am giving you in this article is for informative purposes only and should not be treated as investment advice. The information presented would not be suitable for investors who are not familiar with exchange traded options. Any readers interested in trading activities related to the information in this article should do their own research and seek advice from a licensed financial adviser.
Type of a trade: Cash secured put (in the money)
Alternatively: Bull put spread
Expiration: 16th July (42 days)
Strike: $29
Premium for 1 option: between $295 and $305 on the day this article was published
Margin: apprx. $360 on the day this article was published
Pros for this trade:
– A still valid long signal (I’m using the ADX-Indicator), giving a higher probability that the price would hit the strike in the next 42 days. But it’s still unlikely that the price would hit $29 in such brief time span. Therefore, there are higher chances that the price would approach close to the strike at the end of the expiration of the option. So in this case, we are relying only on the time decay. If the price would cross the strike of $29, so much the better!
– A dividend of 3.34% on the day the trade idea was published, in case the price would fall below the strike and you would get the stock assigned (Source: finviz.com)
Cons for this trade:
– Low IV Rank and IV Percentile
– The long signal could turn out as a flash in the pan
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Result of this trade: t.b.a.
Realized profit for 1 option: t.b.a.
Days in the trade: t.b.a.
Would you like to learn how to trade options in a serious way without false promises and beyond the gambling ambitions of the masses? Then enroll in an online course on Udemy*. Also check my course I created to show you how to profit from crashes in the stock markets with reversal signals*.
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