09/06 - MAC's Options Play - $KR (Kroger)

Sticking to mechanics

09/06 - MAC's Options Play - $KR (Kroger)

Current price - $46.65

MAC's playing a easy strangle on a high volatility stock. Simple set u making a easy opportunity while putting the odds in his favor! MAC is playing Korger $KR - selling the $43 put - $50 call for the OCT 15 2021 (39 days) expiration. -4 Delta and a +3 Theta at a IVR set at 46 (looking for that mean reversion) and a IV set at 34  with a +-$3 expected move.  

Now the MAC is sticking to mechanics and looking for a 50% profit before the 21 days to expiration, MAC is collecting $1.25 and keeping a eye on the price due to a earnings call coming on SEP 10 (possible reason for the high IV) This strangle is using a little more buying power than expected at $598 but not too bad! 

Breakeven - $41.75 & $51.25

This strangle has a POP (Probability of profit) of 66% - Never Guaranteed but better than 50% This strangle has a P50 (Probability of collecting 50%) of 82% This trade has a limited profit with high probability but has unlimited loss which is why it has such a high probability of profit. 

MAC suggests checking out the TastyTrade.com website to discover some easy learning tutorials and videos and opening a broker account at TastyWorks.com and take advantage of their recent Crypto/Options promotions and low commissions!

THIS IS NOT TRADING ADVICE - MAC IS NOT A PROFESSIONAL STOCK TRADER ALL INFORMATION IS PUBLIC KNOWLEDGE AND COMMON SENSE.