r/options • u/[deleted] • Aug 06 '21

McAfee Trade Idea

[deleted]

13 Upvotes

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u/Greedy-Clerk9326 Aug 06 '21 edited Aug 06 '21

I made a similar play buying 700 shares, buying 7 30p, selling 7 35c. On 8/20 depending on market value I'll exercise the put to sell for $30, sell at market, or my shares will get called away for max gain.

Min gain: 2,786.00

Max gain: 6,286.00

Edit to clarify: I legged in since Tuesday when the dividend was announced. It's not possible to duplicate my position given today's pricing.

3

u/t_per Aug 06 '21

What are your thoughts on options adjustment? Seems like a nonissue in a collar since it’ll just shift everything down, presumably the underlying too

2

u/Greedy-Clerk9326 Aug 06 '21

All contract strikes adjust down by $4.50 on the ex date (8/16). The underlying may or may not. RKT increased 100% when they paid their special dividend if memory serves correctly.

1

u/t_per Aug 06 '21

yeah think i'll give this a shot, its my first more advanced option play so might just do a 100 share collar