Weekly option strategies discussion - Week of July 3rd, 2023
Weekly option strategies discussion - Week of July 3rd, 2023
Discuss your plays for the upcoming week or closed positions from the prior week. A good strategy post should include several of the following elements:
- the underlying ticker
- any upcoming catalyst
- the specific strikes and expirations in your position
- trade plan
- purpose of trade
- position management
- premium paid or collected
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Continuing my bearish thesis on CVNA. It had only one profitable quarter since 2017 and should not have a $5 billion market cap. My strategy of choice is put front ratio spreads to take advantage of both price pullbacks and IV collapse. My price target is $24 for the upcoming week.
BTO 7/7 $26P X1 STO 7/7 $25P X2
I've been running this for a couple of weeks successfully. When the short strike is breached, I am rolling it out a week and down several strikes for a credit, while closing the bear put spread for a credit at the same time. So generally collecting credit three times; at open, when rolling the short put, and when closing the spread. I've so far been able to close the rolled put after a day or two due to either theta decay or rolling it into a new front ratio.