(01-04-2021, 02:24 PM)john Wrote: I guess for better or worse I have started to Look at each "trade" as a "deal" rather then an "investment"
The above potential monthly returns are what prompted me to do it.
Would there have been other, better ways to trade this? Sure, possibly
I am here to serve as an example time will tell if its good or bad.
I enjoy the friendly back and forth
That play may or may not work out, we never know but you could probably have enhanced your odds a bit.
I do the dance with T but sometimes the premiums are quite low and I move on untl they fatten up a bit.
I also trade KO a lot and if you are product agnostic, I will suggest a different type of options trade using KO as an example.
5FEB21, same time frame as you chose, buy a 48/50 bull call spread for 1.65. If KO remains above 50 @ expiration you get .35. (if KO rises you could paid out much sooner as well)
.35/1.65= 21% and you can do it in size you'd like. Using the $2,800 that T cost, it would =16 contracts*.35=$560
Just something to think about and play around with.