The stock pick of the day

never2old said:
in my case for that pick yes.

a good suggestion for anyone that posts their pick if they are going to actually buy/sell.

the heading is a 'pick of the day', not necessarily a go do it, just one which members like/chose 'as the pick of the day' to put up for other to see that may be of interest to look at.



any can include that, yes.
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looking forward to this post and posting later on
 
@Stamamarti thanks for posting your BA trade/pick with options expiring 19 June.

to clarify, if you could please confirm that this is the trade, kindly re-post & correct as necessary? ... thanks

buy 100 shares at $120

sell 1contract 140 call
buy 2 contracts 145 call
sell 1 contract 105 put
buy 2 contracts 100 put

cost 4.48

what is the range for profit or loss?

what is the min/max profit?

what is the min/max gain?
 
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I would short BA. That is my stock of the day. I am not sure when would be the correct moment to place the trade, but if you were already thinking of shorting an index, why not better short Boeing, which stands to lose a lot more?
 
never2old said:
@Stamamarti thanks for posting your BA trade/pick with options expiring 19 June.

to clarify, if you could please confirm that this is the trade, kindly re-post & correct as necessary? ... thanks

buy 100 shares at $120

sell 1contract 140 call
buy 2 contracts 145 call
sell 1 contract 105 put
buy 2 contracts 100 put

cost 4.48

what is the range for profit or loss?

what is the min/max profit?

what is the min/max gain?
More...

Well you read it all wrong.. To clarify, this is not an investment advice, but merely an example of a pure option trade... .. no outright shares to purchase. Only,

Buy 1 contract 140 call
Sell 2 contracts 145 call
Buy 1 contract 105 put
Sell 2 contracts 100 put

For a credit of: 4.48x 100=448
Max Gain: 9.48x100 =948 if price hits $145 or $100 at expiry.

Probability of positive gain ~ 0.72

Max loss could be substantial but is per management style.... One could and will lose more than $1000 if BA drops below $80 or increases above $165 by expiry, but this has a probability of only 0.13 to occur...

Hope this clarifies....
 
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