This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Johnson & Johnson / JNJ
Strategy: Long Put Butterfly
Trade entry date / price: 28Aug 2020 / $152.79
Price at this post: $150.65
Reasoning: JNJ has pulled back a bit more than expected due to yesterday's market sell-off. We're going to enter in a closing order here, hoping to catch a little rebound in the stock.
Trade Exit Details:
STC 1 JNJ 4Sep20 155 put
BTC 2 JNJ 4Sep20 152.5 puts
STC 1 JNJ 4Sep20 150 put
For a min net credit of $1.10 per contract (day order, limit order). The mid is currently at a credit of $0.90, so we we won't get filled unless JNJ trades closer to $151.50.
Analysis:
Max Risk: $72
Max Reward: $145 or 200% with JNJ at $152.50 on Sep 4th
Profit Range: JNJ between $150.80 and $154.25 on Aug 28th
Estimated Commission (round trip): $12
Take profits @ $152.50
Anticipated Profit / Loss upon fill: $42 or 29% (pre commission)
