Rolled HOOD calls and RIOT stangles up and out today. Lots of movement in these two on heavy volume.
this post was submitted on 02 Jul 2023
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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.
More of the same tomorrow, July 5th, with CVNA put ratio spreads. Hopefully be able to close out a few rolled short puts from last week.
Considering a ZEBRA on MVIS with an 8/18 expiration. BTO 2X 3.50C and STO 1X 4.50C costs 182 for net 100 delta. The equivalent shares would be 449, so that's 247% leverage over the next 45 days. The trade plan would be 10 positions with a stop loss when MVIS hits 4.29 to limit losses to 0.5% of portfolio value. Close early for a 100% gain if MVIS hits 6.31, otherwise let it ride.