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NKE at 137.68
I’m looking for a move towards 150. Right now, AUG expiration options are pricing in about a 15 point move and I think this is justified. The stock is currently in a squeeze and IF it should fire long, this one can move outside of expected range.
I’m going to structure my trade with no risk on the upside. I’m buying 135/145 Call Debit spread and I am selling a 145/150 Call Credit spread. This makes it a Broken Wing Call Butterfly. This butterfly is going for about 3.20 debit and that is the most I can possibly lose in this trade. If NKE pins 145 by AUG, this butterfly has the max potential profit of 6.80 and if NKE is above 150 then this butterfly will have a max profit of 1.80
My breakeven on this trade is 135+3.20 or 138.20
Risk: 3.20
Reward: 1.80-6.80
POP: 47%
Chart:
Risk Profile:
Order Ticket:
NKE at 152.07
I’m going to roll up the 135 call up to 140 strike, removing all of the risk out of this trade. This will leave a balanced butterfly open with 56 days until expiration.
Video:
Risk Profile:
Order Ticket:
NKE at 173.68
This trade has 10 days until expiration and all options are deep ITM. I’m going to close out this trade for as close to $0 as possible
Order Ticket:
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