I always get interested when a stock enters a parabolic stage and today $PLUG fits that mold. Since I had no existing position I looked at finding a spot to short the stock along with a long call spread. This type of trade is called a Synthetic Put: .
Here is the trade I ultimately did:
- I am short stock at $11.17
- I am long the March 11/14 Call Spread (this is for protection on the short stock piece, not a Bullish play)
- I later sold the March $9 Puts to recoup the outlay for the Call Spread
- The Option pieces make a Bear Collar
- I have added a Stop on the short stock piece at $13