MS and COF still on downward trend. No action needed. Likely to achieved max potential profit of $4,008 and $2,222 respectively by expiry Friday 16-Jan (positions started on 5-Jan through STO).All major banking stocks on downward trend today due to news on C and BAC. Implied Volatility of C and BAC went above 200%. Couldn't resist to try to collect $1K or $2K with high probability of winning e.g. selling far out PUT option for Jan expiry Friday which is only 1 day away.
STO (Sell-To-Open) 130x Jan-$2.5-PUT-C at $0.08. C price was at $3.90. To lose money C has to drop from $3.90 to $2.42 which means it must drop 37.9% within next 1 day. Target profit of $1,040 within a day.STO 20x Jan-$5-PUT-BAC at $0.175. BAC price was at $8.00. To lose money BAC has to drop from $8 to $4.83 i.e. it must drop 39.6% within a day. Target profit of $350 within a day.
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