How to trade Boeing for 400% profit potential
Boeing stock BA is popular one with its slow price movement and a tight rang e price. If we take a look at its price range last five trading sessions we will notice that had almost 1$ price change and if we read it's news we find nothing really important coming next week . Our estimate for its price change is 1$ either up or down . We believe the good strategy to benefit from that with very low risk and high return one is using butterfly option strategy with buying one on the money Call and Put options and sell two out of the money Call and Puts then buy one out of the money of same with a higher strike price. BA closed today at 135$ a share so our recommended trade is :
- Buy 135call aug/26/16 for 118 -sell 2 call 136 (69$) each-buy 137(39$).
The cost of that spread leg is 19$ total premiums.
-Second leg is : Buy 135 Put aug/ 26/16 for (122) - sell 2 puts 134(79) - Buy 133put for ( 55$)
The total cost for that leg spread is 19$ Too.
If the stock price goes 1$ up or down by august 26 the profit will be 100$ - 19 = 81$ And that is 400% profit.
Happy trading
- Buy 135call aug/26/16 for 118 -sell 2 call 136 (69$) each-buy 137(39$).
The cost of that spread leg is 19$ total premiums.
-Second leg is : Buy 135 Put aug/ 26/16 for (122) - sell 2 puts 134(79) - Buy 133put for ( 55$)
The total cost for that leg spread is 19$ Too.
If the stock price goes 1$ up or down by august 26 the profit will be 100$ - 19 = 81$ And that is 400% profit.
Happy trading
Comments
Post a Comment