There is no one who outshines the GARY KAIN, and our own AGNC. LOOK AT THESE RETURNS. BUY NOW!!! Compare with the SPY !!
5 stars please...;-)
I have been drooling over Onion's 32 and 33 ShortSepPuts. Here is my plan. If we get any weakness on the Open or throughout the day, I want some of the ff. Onion...but not without a hedge, as I mentioned to you the reasons, in a prior post(if they move the EX prior to OPEX).
I want to gobble up some Short33's for .80(if we see weakness, like last week)). I want the 37 Puts Long for 3.50-4.00 if we see strength. Then as we begin our INEVITABLE run to EX, I want to layer in with the other leg-- Long 32Put for the downside hedge for a ratio spread of as close to 1/5/4 as possible, with the outer Long legs being paid for with the 5 short 33Puts.
Why not just keep the 5, 33's as a 4.00 credit(.80 x 5)? Instead of using that credit to pay for the 37's?
We go below 32.80 by OPEX(not going to happen, but this is a hedge), and you start losing on the 33's, and the EX is moved and that's worse.
Second, because I already have a bazillion Long Calls on the Sept EX run. I need a reasonable hedge for the downside. Look at the possibilities.
We see 37.00 or better by Sept OPEX and I BE. We see 35 and I make 2.00/spread. We see 33 at OPEX, and I make 4.00/spread. We see less than 33, and the gain is pro-rated down to 32 which is BE.
We have an adjustment to the Puts, if they move EX up B4 OPEX, and you make out with extra moolah on the Long Puts, which will gain more in premium than the lower strike Puts.
C'mon...give me some love...its free...what's not to like?...;-)
Your thoughts(about the trade-not the love),