Post by jakemn on Jul 9, 2020 15:12:24 GMT
I am thinking about implementing a Collar strategy soon for a 14 AUG strike after earnings. My thought is that we have come really far, really fast. If OPK doesn't deliver "exactly" what the street is looking for we may fall fast. So, a Collar will give me a put in case it falls and the cost will hopefully be offset by selling an out of the money call, at say a $6.5 or $7.5 strike. Any thoughts? I am thinking about putting it on mid to late next week, so I want to wait to see what the pricing looks like. The trade would not be my entire position, just some protection.
Buy to Open 18 200814P3
Sell to Open 18 200814C6.5 (or $7 Strike if we run up to near $5 by then)
When I checked today, using the mid-point of the bid ask, it would be a net credit of ~$100 if it went through. So, I make a little and protect my downside if it is a sudden fall through $3. I don't really "see" it spiking above $6.5 by 14AUG (possible though). Any options strategists see any flaws in my reasoning?
Buy to Open 18 200814P3
Sell to Open 18 200814C6.5 (or $7 Strike if we run up to near $5 by then)
When I checked today, using the mid-point of the bid ask, it would be a net credit of ~$100 if it went through. So, I make a little and protect my downside if it is a sudden fall through $3. I don't really "see" it spiking above $6.5 by 14AUG (possible though). Any options strategists see any flaws in my reasoning?
