3 Possible trades

Here are two credit spreads that have a little more risk to them as we are 45 days out from MAR expiration, both have a 70% chance of profit and my rule of thumb is usually 80% but for those of you who want a little more profit for just a slight bit more risk here you go…

AAPL - just bounced off support at $70 so and MACD and Stoch are rising. This has been a strong stock the last 6 months and I think it will continue to be. A Bull Put Spread - buy the MAR 67.50 Put for 1.50 and sell the MAR 70 Put for 2.10 for a credit of .60 or a 31.5% gain in 45 days.

MGM - just bounced off resistance at $38. the 200 dma is just below $40. MACD and Stoch are at their peak and should start to come down within the next couple of trading days. A Bear Call Spread - buy the MAR $45 Call for .25 and sell the MAR $40 Call for 1.00 for a credit of .70 or a 17.65% gain. One other concern I have on this trade is that earnings are out next week on Feb 7th.

Another more conservative trade is to do a calendar spread on THOR. It appears to be peaking at $25 and closed just under it today, earnings is tomorrow after the close so this is a little risky as well, if they are really bad. So here you go - Buy the APR 22.50 Call for 3.50 to 3.75 then sell the FEB 25 Call for 1.00. The trade may have to be closed after earnings.

No Tags