Trade Findings and Adjustments 06-29-2021
I want to take advantage of the Democratic wave of money coming into the economy via stimulus
What companies can take advantage of this money?= DE, CAT, MU
In general Material companies,
Green Companies = FSLR
I want to do something bullish but need time to make sure I can make some money
Leap long calls that act like or are a stock replacement strategy
Longer term Bull call or calendar bull call
FSLR Long Call Jan 23 $92.50 strike price $18.10 (Stock replacement strategy)
Lower my risk Sell to Open Dec 22 $110 Short call credit of $5.20
Overall investment = 18.10 – 5.20 = 12.90
Max Reward = 110 – 92.50= 17.50 – 12.90 net debit = 4.60 IF I get called out at $110
4.60 / 12.90 =35.65% Return on Investment
IF FSLR moves quickly my Adjustment is to roll the short call out to a Jun 2022 $125 strike price
92.50 obligated to sell at 125= 32.50 – maybe $15 of cost 17.50 or 120% ROI
