McInnis 03 said:
I'm probably doing too many of these.
This is a broken wing
Theory: BULLISH
Tick: $NVDA
3/25
277.5p +1
275p -2
270p +1
$1.42 CREDIT (this is what you get to place this trade)
Max pay at expiry = $2.50 + $1.42 credit you receive
Break even = NVDA $271.08 at expiry, above that you profit.
Max loss: $1.08
Just to be responsible here....if you followed, you can play this 3 ways.
1) Hold it, if it's above 271.08 at expiry you're going to make money no matter what.
2) Close it for a debit likely less than you were credited for it (you keep the change), or even get another credit?
3) Buy the 270p (-1)/272.5p (+1) vertical spread for less than you were credited and hold the 2.5-wide fly for a credit.