US CANNABIS: MacroDoζer Summer Special 4/5 (+41%)
At This Point, Feel Free to Come Up With Your Own Subtitle (Friday, 22:45, Central Africa Time)
Executive Summary
It is Friday, and any plant will do.
The Apache tribes will be watching.
We kept it cool and say thank you for all the love, medicines, and music.
1. Recap Situation
We cared about plants with mind-altering properties.
Check out the original BrainDoζer below.
2. Why Now?
We also cared about today’s MSOS share price retrace. It looked like Cannabis would break out. We kept our cool. A big thank you to Retail for not going bonkers on the marijuana just yet.
MSOS could be a long LEAPS candidate at some point. So we will wait, and the collective will see.
3. Trade Execution
Trade Entry - Aug 2, 2022
1) Short Call 12, Sep 16, 2022: 1.00 Credit.
2) Short Put 12, Sep 16, 2022: 1.50 Credit.
3) Long Call 16, Sep 16, 2022: 0.30 Debit.
4) Long Put 8, Sep 16, 2022: 0.15 Debit.
Total: 2.25 Credit.1
Trade Exit - Aug 26, 2022
1) Long Call 12, Sep 16, 2022: 1.40 Debit.
2) Long Put 12, Sep 16, 2022: 0.45 Debit.
3) Short Call 16, Sep 16, 2022: 0.10 Credit.
4) Short Put 8, Sep 16, 2022: 0.00 Credit.
Total: 1.53 Debit.2
The absolute return of this trade is
2.25 - 1.53 = 0.72
The capital used was 1.75, resulting in a return on capital of
0.72 / 1.75 = 41.1%
Total credit equals the sum of the mid-prices of each bid/ ask spread. Brokers usually get filled mid-price for liquid options.
Total credit equals the sum of the mid-prices of each bid/ ask spread. Brokers usually get filled mid-price for liquid options.