RIOT options ideas

Discussion in 'Options' started by 7out, Oct 6, 2021.

  1. 7out

    7out

    I Would like to hear some thoughts/advice from you frequent option traders.

    First, let's say I'm bullish on RIOT for the next few months and I feel it will rise above $30 in the next 2 months.

    My Options:

    A: Buy 3x DEC 17 $26/$30 call spread for $1.50 per, for a max profit of $2.50 per.
    B: Buy 4x DEC 17 $27/$30 call spread for $1.10 per, for a max profit of $1.90 per.
    C: Sell 1x DEC 17 $30 put for $7.00
    4. Forget options and just buy 100 shares of RIOT outright and possibly set a $23.50 Stop loss.
     
  2. The best trade would be buying OTM calls only. No spreads.
     
  3. 7out

    7out

    Wouldn't I need the stock to go significantly above $30 to make a profit then?
     
  4. 5. Buy stock and sell weekly OtM calls.

    Not a popular strategy on here, and a very different risk profile, but you can collect premium each week whilst / if it rises. If you're wrong, the call income will reduce your net loss.

    For reference, with stock at 26.60 yesterday, the 15 Oct 29 call was 0.85.

    For avoidance of doubt, that is an example, not a recommendation.
     
    Last edited: Oct 7, 2021