We are adding the following MCM uly recommendations to Portfolio #1.
We are recommending a put credit spread on BBY and ANF, which will complete
an iron condor on BOTH of those positions.
Both these issues have moved into the money on the call side.
ANF for what appears Q3 window dressing,( but we will have to see. )
BBY on buyout rumors (private, public, can't see it happening anytime soon), so with a 2 strike difference let's pick up some premium and add the put side and wait.
The worse thing is that they have a buyer and we lose the maximum of $2.00
on the call side, but we reduce it by the initial call premium we received
and the put premium we hopefully take in tomorrow.
That would $0.34 on the original call and $0.21 on the put side ( if we get filled. ) for a total of $0.55.
Actually maximum lost would be $1.45, but we could still make money
on a close between $19.45 and $21.55, we will have to see how it plays out.
We are recommending the following specific credit spreads in the above issues.
put Credit spread = Bullish spread spread.
Since they complete iron condor these spreads should not require any additional margin requirement, with the right broker- dealers.