Options question

Discussion in 'Stock Market Today' started by ChelseyCat, May 2, 2021.

  1. ChelseyCat

    ChelseyCat New Member

    May 2, 2021
    Likes Received:
    I am setting up a spread for EBAY on Robinhood. EBay just had their quarterly report on 4/29 and their stock dropped by $7.00 to $55.99. I am anticipating it will rise to $56 or higher by 5/21 and opted to go with the following PUT CREDIT spread as follows:

    EBAY currently $55.99
    sell - 14th May - $56.00 - Put 1x100 -$1.16 - $116.00
    buy -14th May - $53.00 - Put 1x100 - $0.26 - $-26.00
    Total $90.00 credit

    My profit matrix looks like this (link to Options Profit Calculator):

    $90 is my maximum profit for this option trade which is fine for me.

    Can I get some feedback if this is the best spread option to apply? (as opposed to a CALL CREDIT spread, iron condor or any other option programs). Are these the optimal expiration dates and strike values to maximize my profit with as little risk as possible?

    Brand new options investor here so please be kind!

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