Stock / Symbol: Qualcomm / QCOM;
Price at trade post: $48.88;
Option Strategy: bull put spread;
Reasoning: This trade seeks to benefit from decreasing volatility following yesterday's antitrust allegations against QCOM in South Korea. I'm using weekly options expiring on Nov 27th. The Greeks going into this trade are:
25.6 Delta; 2.5 Theta; -1.6 Vega
Trade Details:[private_monthly]
STO -3 QCOM NovWk4 47 puts
BTO 3 QCOM NovWk4 46 puts
for a min net credit of $0.17 per contract (GTC order, limit order). The current mid is $0.18
Requirements
Cost/Proceeds ($51.00)
Option Requirement $300
Total Requirements $249
Estimated Commission $9
[/private_monthly]
Max Risk: $249
Max Reward: $51 or 20% [private_monthly]at/over $47[/private_monthly] by Nov 27th
Profit Range: [private_monthly]$47 +[/private_monthly] by Nov 27th
Downside Stop @[private_monthly] $47[/private_monthly]
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