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IknowMyStuff

01/17/2021 13:28

$Churchill Capital Corp IV 400% Opportunity option spread, *BUT ONLY FOR HIGH RISK individuals*, cause if the lucid deal doesn't go thru this will be max loss..

Call debit spread/long Vertical call:
You buy a 17.50 call & sell a 20.00 call, now if by expiration cciv is above 20.00 then both options get exercised automatically & u earn 2.50 per share, times 100=$250 but since u paid 50 for the spread your gain is 200, which is 400%

Notes:
1. break even point (zero loss) is if the stock will trade at 18 by expiration
2. max gain will be if stock is 20 or above by expiration
3. gains are capped by a option spread, cause the 20 call u sell obligates u to give away the shares
4. u don't need to have buying power for the shares by exercise, cause they buy it & sell it instantly so the brokerage takes care of it

I personally did this trade, cause even though I have confidence the merger will occur, I don't believe this will be 90 in a month, but here if it's just 20 a share in a little over a month- Bingo! 400% return

Good luck & lmk in the comments if u plan on replicating this trade
#Options Trading
$TESLA $NIO Inc. $SPDR® S&P 500 ETF Trust $Apple $Li Auto Inc. $XPENG INC. $Lordstown Motors $UWM Holdings Corporation
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Disclaimer: The comments, opinions and analysis expressed herein are for informational and educational purposes only and shoulk not be considered as individual investment advice or recommendations. Webull is not responsible or liable in any way for comments posted by pur users.

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All Comments(21)

ale***com01/19/2021 05:39
Thank you for the tip! This will be my first option trade; can't wait for the open tomorrow!

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Ty Trader 01/18/2021 11:56
what happens if it sells between 17.50 and 20. the buy option is exercised but the sell option is not. ... if I don't have the capital for the buy option... what happens then? I understand that neither is triggered under 17.50 or both are triggered over 20 but I don't understand what happens in between and don't want to get stuck.

thanks.

IknowMyStuff01/18/2021 14:30

you will know you will need to sell those shares as soon as possible

IknowMyStuff01/18/2021 14:29

the 17 will indeed get exercised, and you'll account will go into a negative until you sell the shares but you might even turn out a profit of it if let's say it's it happens at 19

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ada***com01/18/2021 05:23
ballsy move and I thought I was risky for 15$ calls for February. let's hope for the best together!

IknowMyStuff01/18/2021 14:28

yup amen

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Ben***com01/17/2021 19:04
what is different between debit and credit spread?

IknowMyStuff01/18/2021 02:23

debit u pay money upfront, hoping the stock will move up(like a call) credit is u get payed money by selling a option, hoping it will expire worthless so u get to keep the premium

Seb01/18/2021 01:02

in a debit spread the option you buy is more expensive so the premium is debited from your account. in a credit spread the option you sell is more expensive so the premium is credited to your account

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FOMO Trader01/17/2021 17:40
How can I get option trading lv3 on Webull?

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cal***com01/17/2021 16:10
too hot for me . aint touching it

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Erob_Bullish01/17/2021 16:01
Debit Spreads is a great way to make money for small accounts and comes with less risk, you do have a max cap , Profit is profit. But overall its a good strategy!

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Erob_Bullish01/17/2021 15:56
Thats Dope $50 get yoy $200 Max!!💰💰

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Off***com01/17/2021 15:32
is this covered? because if you're tying up shares which cost money, it's not 400%.

IknowMyStuff01/18/2021 02:17

the max loss on each spread is the 50 it costs u when buying it. You won't have to buy or own any shares cause both contracts get exercised so it will buy shares and sell them right away automatically

StockPredictor on utube01/17/2021 17:11

spreads arent covered lol

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tlsamkat01/17/2021 15:22
K. another question for this learning girl... I see the parameter set-up, for limit order..but I do not see anywhere for expiration? Treading very softly, but eager to learn...Tina

IknowMyStuff01/18/2021 02:15

the next available expiration date is Feb 19, that's the one I chose

tlsamkat01/17/2021 17:24

@StockPredictor. Your shallow remarks & presumption(s) speak to your lack of character. Was simply a figure of speech humbly, referenced & my own ignorance...gender NR. lol. Bless you.

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luuisss01/17/2021 15:00
How many contracts are you thinkinv about getting?

IknowMyStuff01/17/2021 15:03

don't forget this is all on speculation on the deal

IknowMyStuff01/17/2021 15:02

for now I have 15, & also 5 of a safer bet

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VincentVega01/17/2021 14:34
I have no clue in options at all but it sounds good.
how do I go about it?

VincentVega01/17/2021 15:21

what if it will hit 20 before expiration?

IknowMyStuff01/17/2021 15:16

u pick from the dates available, the next upcoming one is Feb 19
by expiration if the stock is above 20, everything will happen automatically

View all 10 replies

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iMemberWSB01/17/2021 14:34
good luck friend.
I've never done options, scared of owing money.
maybe I can learn without losing it all.

IknowMyStuff01/17/2021 14:36

the max loss on each of these contracts is 50 dollars that u pay upfront. No other losses possible. cause this is a debit spread

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50 Cent01/17/2021 14:26
Sounds like a win, ive never been an options Trader. What does options trading entail??

IknowMyStuff01/17/2021 14:31

so some stuff are more complicated, but this- a call debit spread is pretty basic
u buy a call & sell a call at a higher strike price at the same time. You sell the higher one to minimize your cost from the lower one

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fd8***com01/17/2021 13:53
seal the deal please

IknowMyStuff01/17/2021 13:55

that's great bro

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