07-07-2021, 11:47 PM
(07-07-2021, 07:18 PM)NilesMike Wrote:(07-07-2021, 09:23 AM)crimsonghost747 Wrote: Also, my first ever bull put spread.
BABA 205/200 (september)
Curious as to your expiration choice?
Sept expires after earnings.
The daily return if successful is $2.90
July expiration would return $15.00 per day and has a lower delta
Just asking
Hmm, you do bring up some good points.
Honestly I'll have to admit that I didn't even look at the July one. But now that you point it out, I probably should have. I might have some more thinking to do around this position.
Overall I do think that BABA is undervalued and it'll go up at some point, so more to say that here I think time is on my side. I do not mind having the earnings in between as I think a good report is more likely than a bad one. And yes, I do realize this is a bit more risky but with a spread I'm fine with taking on a bit more risk. I just didn't realize that I'm actually not really getting paid here for the additional risk I'm taking.
But this is exactly why I like to post my stupid trades here. You guys are much more experienced and can easily spot oddities in my trades that I don't see myself. Thanks, this is how we learn new stuff.