MCFE multi billion dollar play! JK. Just some DD on a low risk, high probability, not terribly exciting double calendar spread…
Got an interesting pay to consider here. This is based off of epicoliver3 DD on MCFE.
Take a look at the following double calendar spread: 40c Aug/Sep and 25p Aug/Sep. At a 2 to 1 ratio of calls to puts, the B/E is 23 and 54 with profit peaking at 40 with another little pop around 25. The risk reward ratio is almost 10:1 with over a 90% probability of it being ITM.
There’s no guarantee it’ll land in the sweet spot and the whole div and volatility may make for a rough ride, but come expiration, it only has to land above 23 to not lose money – and it’s been above 23 for the past 4 months.
Not a perfect play, but something to ponder. Keep in mind this is the first time WSB bots are actually letting me post anything…
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August 5, 2021 at 04:13PM