It looks risky to me. If you believe your technicals, then why not sell a call credit vertical spread? This would then benefit you if it stock stays the same or goes down.
Hey Mansur, i’ve got a couple of bullish put vertical credit cards spreads (20 contracts) still on that I sold for $1.20 (205/200) and are trading at ~$.85-90 now. It seems Google is establishing a new base at this higher level, but my technical analysis is weak and mainly going on the fundamentals of the stock.
I’ve made good money on GEV on mostly selling. Vertical bulb put spreads underneath the stock as the options premium is very high due to volatility. It’s been one of my favorites.
This trade is different — expiration is Oct 17, and the idea is to test a new setup on an overheated stock. Every trade carries risk, but here the goal is to explore how a debit spread plays out under these conditions.
On top of that, I’ll also be looking at a possible weekly call credit spread next week — depending on how the setup develops and whether other attractive names appear.
It looks risky to me. If you believe your technicals, then why not sell a call credit vertical spread? This would then benefit you if it stock stays the same or goes down.
Hey Mansur, i’ve got a couple of bullish put vertical credit cards spreads (20 contracts) still on that I sold for $1.20 (205/200) and are trading at ~$.85-90 now. It seems Google is establishing a new base at this higher level, but my technical analysis is weak and mainly going on the fundamentals of the stock.
I’ve made good money on GEV on mostly selling. Vertical bulb put spreads underneath the stock as the options premium is very high due to volatility. It’s been one of my favorites.
Good luck on your Google credit debit spread!
-RS
Thanks, Rich — good point.
I actually do this regularly: selling call credit spreads on shorter weekly timeframes:)
1. https://optionplaybook.substack.com/p/profit-taken-bear-call-spread-goog
2. https://optionplaybook.substack.com/p/profit-taken-bear-call-spread-goog-ffe
This trade is different — expiration is Oct 17, and the idea is to test a new setup on an overheated stock. Every trade carries risk, but here the goal is to explore how a debit spread plays out under these conditions.
On top of that, I’ll also be looking at a possible weekly call credit spread next week — depending on how the setup develops and whether other attractive names appear.
I might look at selling a back ratio or variation of that
Like buy 210 p X 1 , sell 200 or 195 X 2
Goal is to at least make it close to a “free trade”
And because the ratio is Spread was done for a credit the six or 8% pop that allowed me to get out with a profit