Current price 60.90$
Puts for 21st of June @60 cost 110@ per contract. 100 contracts=10K$ investment,
We can immodestly cover the position with 2000/2500 stocks @61 depending on the risk tolerance of the trader. My personal choice is not covering the whole position since I am expecting my main position which is the PUTS to gain 50K by the end of the week and in case I am wrong I prefer to cover only 7K from the initial 10k investment.
So basically we need more than 10K capital to make this position but the risk of actually losing money is max 2-3K lose with a potential gain of 50thousand and the chance of the position being a winner is 63% which for such an RIsk-Reward is an amazing opportunity.
Puts for 21st of June @60 cost 110@ per contract. 100 contracts=10K$ investment,
We can immodestly cover the position with 2000/2500 stocks @61 depending on the risk tolerance of the trader. My personal choice is not covering the whole position since I am expecting my main position which is the PUTS to gain 50K by the end of the week and in case I am wrong I prefer to cover only 7K from the initial 10k investment.
So basically we need more than 10K capital to make this position but the risk of actually losing money is max 2-3K lose with a potential gain of 50thousand and the chance of the position being a winner is 63% which for such an RIsk-Reward is an amazing opportunity.
