One stock that I was monitoring this morning was $TRIP as it approached the $70 level and the Gap below. I elected to do a unique trade where I am long stock and sell a Straddle.
Here is my trade:
Here is what I am looking for:
I want price to hold this $70 level, looking for a “Pin” on Friday (tomorrow)
I want to keep as much of the premium collected as a cushion on the trade
If price does hold well, I will resell the same strike Straddle in a further out expiration (I’ve done this several times this year, like $JCP & $EWW)