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I like $LEN here. I’m looking to buy an ITM call in NOV expiry.
NOV 75 call is trading around $7.90 and this call is about 4.00 ITM. This means that I will be paying about 3.90 of time premium for this option.
I want to sell a call to offset some of the cost of the time premium that I’m buying. I will look to sell a call in OCT expo. An 80 call is going for about 3.15Buying NOV 75 for $790
Selling OCT 80 for $315My out of pocket cost is $4.75
That is the most I can lose in this trade.
Here’s what this trade looks like:
I will try to make 20% ROR and I dont want to lose a lot more than what I’m trying to make here
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