What is this trade?

Discussion in 'Options' started by James.DeGori, Jul 11, 2020.

  1. Sorry for the confusion.
     
    #11     Jul 11, 2020
  2. ironchef

    ironchef

    Net long. Bullish bet but didn't believe RUKU would go beyond $160 at expiration, so shorted $160 to reduce his cost base.
     
    #12     Jul 11, 2020
  3. destriero

    destriero


    OMFG can you be more wrong? (Don’t answer that).

    The dude is long the Oct 55/60 call spread AND long an additional Sep 55C. He wants the stock at inf.
     
    #13     Jul 11, 2020
  4. ironchef

    ironchef

    We are amateur retails. Simple minded and dumb.

    Tell me what is wrong with the logic? Isn't he net bullish? o_O
     
    #14     Jul 11, 2020
  5. destriero

    destriero

    You got the structure wrong by stating that he wants the shares to 160. He is long a single call and a bull vertical. He wants it to rally, period. The position never flips modality. He is always long with this position.
     
    #15     Jul 11, 2020
    Atikon and ironchef like this.
  6. ironchef

    ironchef

    True. I can't argue with that.
     
    #16     Jul 11, 2020
  7. So to be clear this isn’t a good trade? And if you don’t mind how do you make money with it?
     
    #17     Jul 11, 2020