Options Idea: Sell The JD Oct 16 2020 62.5 Put @ $1.03

JD has been in an ascending parallel channel since the COVID-19 peak in March and shows no sign of slowing down. I sold an October 16 2020 62.5 Put @ 1.03 near the bottom of the channel today with the idea that the uptrend will continue over the next couple months. This is one of China's biggest e-retailers and its been having a great time with extra sales due to the pandemic. Don't see any reason why that should stop anytime soon.

An alternative idea for a more aggressive trade would be to sell the $70 Put for a much larger credit. The $70 Put will be just below the bottom of the channel on the Oct 16 expiration.

20-JD-01

• Opening Date: August 20, 2020
  
• Expiration Date: October 16, 2020
  
• DTE: 57
  
• IV: 44%
  
• IV Percentile: 36%
  
• Odds of Winning: 80%
  
• Win: > 61.47 @ Expiration
  
• Loss: < 61.47 @ Expiration
  
• Reg-T Margin @ Open: $720
  

Chart Legend

• The green area represents 100% win zone.
  
• The yellow area is a win, but we have to give back some of the initial credit taken in.
  
• The red area is loss.
  
• 1 SD, 2 SD, 3 SD projections from Opening Date to Expiration Date are included.
  

Giao dịch được đóng thủ công:

Closed this out @ $0.50 on 8/25/2020. JD went parabolic, crashing upwards, moving outside of the 3 standard deviation projection. Anytime I get a chance to take a 50% profit after just a couple days in a trade, I'll do that.

Here's the final stats for this trade:

Days in Trade: 5
Credit: $53
Return on Capital 7.07%
Annual Return 14563.76%