Opened a bull call spread.
music selection: “He’s My Thing” — Babes In Toyland
weigh-in: 186.2 +1.4 (broke a 16 week win streak).
Chip makers are hot because of the backlog and I like the chart of STM. So I bought a bull call spread. With shares trading at 44.95, I bought the 40/45 strike bull call spread with 15OCT2021 expiry for 3.7492 per share (13 spreads). The trade enjoys 2.67% downside protection. I have 4,874 in capital at risk for 33 days. Should the price rise by a nickel and stay there for expiry, I will earn the full profit of 1,626 or 33.4% which is 369% annualized.
My bull spread in TEL continues to be threatened with expiry coming this Friday. I bought at 3.55 a share and have a limit order to close at 1.75, which is unlikely to fill. I will be watching this one closely.
Devour your prey raptors!