Selling a 100 Call and Buying a 97 Call with none Exposure Today, I'm sharing an options strategy that I used regularly (well... back in the 2000s at Duval), which combines selling a call and buying a call for optimized returns while limiting risk. The Trade Setup: ✅ Selling a 100 call on October 2025 (100 lots) with a premium of 45 cents per lot and ✅ Buying a 97 call on November 2025 with a premium of 42 cents per lot to protect against a post-October rise. Premium received: 100x500x(0.45-0.42) = $1,500 And if the market exceeds 100 at the October expiration? ➡️ If the cotton price exceeds 100, I’m covered by the 97 call I bought. ➡️ Result: I capture a 3-point difference between the two strikes, a gain of €150,000 for 100 lots (3 points x $500 x 100 lots). ➡️ Adding the $1,500 premium, the total profit reaches $151,500. An exceptional return: With a margin of $15,000, this trade allows me to generate a return of 1,010% if the market exceeds 100 at expiration. In summary, this strategy combines high yield and risk coverage. Besides benefiting from an immediate premium, I ensure protection in case of a price rise. #OptionsTrading #TradingStrategy #HighYield #RiskManagement #MarketFinance PS: Starting with 25 lots today and accumulating quietly, don’t want to spook the person taking the opposite trade! This is my cash cow. 2025 will be a great year.
Oct is 110 beeps over Dec. I don't have the FO-quotes in front of me but if the thing hits par the switch will blow out (Oct-Dec>300).
I’m expecting the cotton spread between October and December futures to drop to -200 bps this year. With global cotton stocks at 94 million bales according to the USDA, there’s just too much supply. Add in slowing demand and potential trade issues, and the October contract is likely going to get hit harder than December. Historically, when we’ve seen oversupply like this, spreads tend to invert, so I’m confident we’ll see it drop to mini -200.
I just did 60 of those today. I'm just bearish CT. This is a good way to net a 10% yield on covered call. If it blows up I'm protected by the Nov25.
This doesn't track. You're 30 OTM and expecting the thing to hit 100 (spread ITM) and the switch to invert, all while being bearish for this exceptional return. For once I'm speechless.
You make 10% to do nothing. I'm bearish that's it. If and I say IF the market goes up I'm long of the C97 X25 ( this is my protection). In the meantime I collect 3c or 1500$ for only 14500$ of margin.
I don't believe the initial on this is $14,500, but that's another conversation. Can we see the 0.03 fill? I want to see if it's marketable. Thanks.