This week I wanted to continue what a friend showed me with options and try to change up some of my stock trading strategy to include more options which have historically been a loss for me. I am trying a short strangle option on CMG and PCLN. For more reading on the strategy read The Options Guide article here.
PCLN – JUL29 1277.5/1372.5, 2.50
CMG – JUL29 417.5/437.5, 1.95
My thoughts on this, PCLN seems like the safest bet as the short on the call is way outside of the 1 week high and above the 1 month, and the short on the put is outside of the range of the 1 week high, however this ate up a good amount of capital.
CMG is a little more risky, the call and put are within the one week range, but earnings have come out so I am not expecting much movement either way. I plan to post up some of my trades weekly to track how I do. I am only trading one or two contracts either way.
7/30 edit: all options expired out of the money.