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RE: TIB: Today I Bought (and Sold) - An Investors Journal #494 - Gold Mining, 3D Printing, US Retail, Thailand, Cybersecurity, Silver Mining, Agricultural Commodities, Bitcoin, Ethereum
I see your profit potential, what's your risk with in the 3D options trade?
Net premium of the spread of $0.76 minus the premium received for the sold put of $0.18 = so $0.58 per contract (6.4% of strike).
First risk in the trade is price drops below $7.82 before January expiry and I am forced to buy the stock at $8. After that risk in the trade is if price does not stay above $9 on May expiry. Breakeven will be $9.58. Price closed above $9 at $9.12 on December 19.