A Prime Opportunity

١٦ سبتمبر ٢٠٢١

Ally Bank is a high quality bank with a stable price, reasonable valuation, and no upcoming catalysts in the next 30 days. Due to it's channeling price action, selling the OCT 15 48/55 short strangles, which have a breakeven of 46.48 and 56.52, seems like a free money trade. Earnings are on the 27th.

Alternatively, you could sell some 2:1 put ratios for a higher credit and more protection should the stock move higher into earnings.

Either way though, the R:R here seems highly attractive & could present a nice little $150-$200 win per contract.