Long calls to consider January 2021

United Airlines, FB, and APPLE. Any thoughts?

 

UAL - 70 strike

Sell the put = +/- $3500 credit at Jan 2021 expiration
Buy the call = $365 outlay for +/- $1700 return or loss of $365

 

For the techs:

QQQ Jan 21 2022 335 Call
QQQ June 19 2020 85 Put

 

Wouldn't the vols on these far dated products be a major hurdle at this point?

 

This makes no sense to me, which is why I do not understand options.

You bought a call at 70 for $365 bux. That $365 is now gone, poof, you have instantly lost it.

You sold the put at 70 strike for 3500 bux. But what if the UAL price drops to 2 by Jan 2021? Aren't you in a world of shit if UAL drops to 2 bux per share? You sold someone the right to sell the shares at 70 per share. If it is at $2 at expiration, you get those shares put to you, yer screwed?

 

Those are just two ways to play it. Yes, selling is risky...but you would just see your $3500 evaporate at $2 per share. You’d lose the entire credit.

 

If you want to make funny with the options, do it in the options section, not the trading section. You confuse the shit out of dumbasses like me. I am sure Poopydeek would have something to say about your scenario though, he's a wiz at that sort of thing.

 

I’d be interested in his thoughts.