NIO Long The Safer Way 15 strike Nov

Earning day play:

SELL DOTM PUT NIO 18 NOV22
FOR $2.13
Strike 15 ROI =15/2.13= 14.3 %

Target support zones 13-16 target resistance 27-30

*** 2 outcomes
a) Stocks close above 15 By EXP in November we make an income 14.3%

b) Stock Tanks because of delisting fears or geo political USA china We get the asset stock at 15 strike - credit received $2.13= $12.87

Safety of margin current stock price 22-12.87= 9.13 trade structure safer


Hope it helps
Marc

Bình luận:

Hi Everyone in lieu of Todays geoplotical risks with Pelosi visit to Taiwan ...taking profit and running out of this position. Possible chinese retaliation not worth the risk .
Reward buy put at 1.06. ROI= credit recv 2.13-106= 1.07/15strike=14.15% ROI thank you and lets run for now...The DOTM Trifecta selling puts is a great strategy for asset accumulation or income but if there is a real delisting risk ...run and lets access later, one can always re enter a dangerous position