this post was submitted on 02 Jul 2023
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Weekly option strategies discussion - Week of July 3rd, 2023 (self.options)
submitted 1 year ago by MaxCapacity to c/options
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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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[–] MaxCapacity 1 points 1 year ago

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.