Sell to Open WBD Dec 29 $12.50 Call
December 4, 2023
Trade Alert
This trade is only for those long the January 2025 WBD $10 Call – the second WBD diagonal spread trade. Let’s take advantage of the current rally to open a short position to replace the one that expired last Friday .
Place the following roll trade for a CREDIT:
Sell to Open WBD December 29 2023 $12.5 CALL
Aim for a CREDIT of between $0.2 to $0.5 per contract (you will receive between $20 and $50 per contract traded in option premium as income into your account).
Make sure the number of calls you write does not exceed the number of January 2025 calls you already own.
This is how the trade looks on Fidelity’s platform but should appear similar regardless of which brokerage you are using.
We may need to be a little patient with this trade but it should be suitable for placing a Good Till Cancelled (GTC) order.
Disclaimer
The information and opinions contained in this blog and newsletter are not investment advice and should not be taken as such, nor as an endorsement as to the propriety for any individual reader. Trading options involves the risk of substantial loss of capital, up to and exceeding value of your entire portfolio, in certain cases. Readers are solely responsible for making their own investment and trading decisions and must assume the entire cost and risk of any trades they undertake, whether or not based on the information presented in this blog and newsletter. Principals of the Stock Spin-off Investing and SSI Ultra Options Advisory newsletters are not registered as securities broker-dealers or investment advisors with any securities regulatory authority, and are not acting as financial advisers or in a fiduciary capacity. All material presented in this blog and newsletter is for general informational purposes only.
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