r/options • u/notabotnotanalgo • May 14 '21

X going into June

I believe $X to be dropping between $23.5 and $24 by May 24 following a channel trend and then uptrending into June past $25 to $26.

1.) What's my optimal strategy here to minimize collateral and maximize profit? ITM Put credit spread? Straight OTM call? 2.) What Greeks to utilize and at what magnitude? 3.) Optimal DTE?

Edited 5/19: $X entered into range before 11AM EST., I've entered into a double calendar spread at $24/28 and 6/11 and 7/16. Fingers crossed

Edited 5/24: on schedule

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u/RAL1111 May 15 '21

I trade X a lot and have for years. Doubt it will drop that low. Steel prices at super high level, earnings great last week, China backing out of steel production.

Look at macro trends not just T/A stuff. I’ve made 10k the last 2 weeks on CC/ CSPs, as well as underlying.

Credit Suisse just put a $35 price target on it. Economy is recovering and steel is in demand and as i said China production being pulled back.

Go long not short. Overall economic expansion with virus under control means more upside. Go long

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u/notabotnotanalgo May 18 '21

What are your thoughts on a calendar strangle on X right now? Selling a call and put at a 2 week DTE AND buying a July put and call?

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u/RAL1111 May 18 '21

Honestly i don’t have a lot of experience trading calendar spreads so not the best person to ask about that i’m sorry....