This Iron Condor Gives Nuclear Oklo Stock A Wide Range For Profit

Blockhead11-23

The nuclear energy patch is heating up and one of the names garnering attention is Oklo (OKLO). With a big spike in institutional ownership, Oklo stock seems like an under-the-radar stock that's worth...

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With a big spike in institutional ownership, Oklo stock seems like an under-the-radar stock that's worth...</p>\n\n<a href=\"https://www.investors.com/research/options/oklo-stock-iron-condor-wide-range-profit-nuclear/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>This Iron Condor Gives Nuclear Oklo Stock A Wide Range For Profit</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThis Iron Condor Gives Nuclear Oklo Stock A Wide Range For Profit\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-23 03:33 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/research/options/oklo-stock-iron-condor-wide-range-profit-nuclear/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The nuclear energy patch is heating up and one of the names garnering attention is Oklo (OKLO). With a big spike in institutional ownership, Oklo stock seems like an under-the-radar stock that's worth...</p>\n\n<a href=\"https://www.investors.com/research/options/oklo-stock-iron-condor-wide-range-profit-nuclear/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4081","symbol_name":"电力公用事业","start_time":0,"source_url":"https://www.investors.com/research/options/oklo-stock-iron-condor-wide-range-profit-nuclear/","article_id":"2485215260","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2024/11/Stock-Radioactive-warning-shut-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2485215260","pubTimestamp":1732304014,"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"With the nuclear stocks capturing attention, how can you profit while giving them room for their volatility?","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4081":"电力公用事业","OKLO":"Oklo Inc."},"translate_title":"这只铁秃鹰为核奥克洛股票提供了广阔的利润空间","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"OKLO":1},"content_text":"The nuclear energy patch is heating up and one of the names garnering attention is Oklo (OKLO). With a big spike in institutional ownership, Oklo stock seems like an under-the-radar stock that's worth watching.\n\n\n\n↑\nX\n\n\n\n\nHow To Make Tough Trading Decisions: Anne-Marie Baiynd\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nHow To Make Tough Trading Decisions: Anne-Marie Baiynd\n\n\n\n\nAs it consolidates in a somewhat overheated space, one could reasonably expect it to hold within a range, albeit a large range. In consideration of its price-to-book ratio, if the chart drops to $15, it could be a potential addition to a portfolio.\nWhenever I'm thinking of things holding in a range, I lean on the trusty iron condor. As gyrations are likely to occur before the next potential rise we'll use a twist on the iron condor that will allow for wider ranges and more bullish potential.\nOklo Stock Today: Iron Condor With A Twist\nWhen we position with short iron condors, we attempt to collect time decay while a chart bases or settles into a new direction. As always, we assume that we don't know the direction but are able to estimate the magnitude of the move using the ATR (average true range, measured on the weekly chart). We also lean on the implied moves that market makers price in over the months ahead.\nAccording to IBD Stock Checkup, Oklo stock holds a 68 Composite Rating, a 7 Earnings Per Share Rating, and a 99 for Relative Strength. Granted, the ratings aren't stellar but the chart and story are compelling.\nLet's look at a trade structure we can use for Oklo. A short iron condor consists of two spreads: a short call spread and a short put spread. Together they define a range of motion that we estimate the price action will not exceed. We'll use that same basic structure with a little twist. I'll use twice as many put spreads in this case:\n\nSell to open one OKLO Jan. 17-expiring 40 call\nBuy to open one OKLO Jan. 17 35 call\nSell to open two OKLO Jan. 17 17.50 put\nBuy to open two OKLO Jan. 17 12.50 put\n\nWhy double up on the put spread? Two reasons:\n\nThe chart has significant bullish potential and I want to collect more premium on the bullish side of the spread — the short put spread.\nIf it comes into lower levels, I have the opportunity to be put to the stock at a significant discount.\n\nAt this writing the credit received is $2.50 per share. This represents the maximum profit we can collect on the trade. With this kind of position, we collect a premium and as this premium erodes, we secure that revenue from the position.\nRisk Calculation\n\nCalculate maximum risk in the following way. We start with the distance between the strikes. Here they are both the same at $5 but our short put spread holds a wider risk because we sold twice as many. Therefore we'll calculate that risk separately. \nOn the call side $5 minus the credit we collect of $2.50 = $2.50. On the put side $10 minus the $2.50 credit collected = $7.50. \n\nSwing Trader Weekly Update: Why Now Is The Time To Be Aggressive\n\nOften, the question gets posed: Why take a trade where the risk is often more than twice the size of the reward?\nThe answer: The probability of the short iron condor with strikes far out of the money (meaning far away from the price of the stock currently) returning gains is often as much as nine times more likely than the long iron condor.   \nIn the current case, we are looking at a probability that the short iron condor delivers gains is more than seven times as likely. So, we make the trade on the side of probabilities, rather than the possibility of outsize gains. Because of my bullish bent, doubling up on the put spread gives me an extra $1 in premium. Yes, the risk is doubled too, but the odds are still favorable.\nStock hunting using fundamental and price strength within The IBD Methodology is where I firmly plant myself under the backdrop of the current economic backdrop. I use technical analysis to find ideal buying opportunities in conjunction with the tools for strength seen on IBD.\nTrade Management \nNow, let's identify key chart levels. Oklo stock sits near its highs in a market that may very well see a Santa Claus rally. I chose a short call strike more than 40% from current prices, but if volatility hits the market from any other kind of exogenous shock we're prepared for that too. We have the choice for a breakeven near $15 if we are put the stock (strike of $17.50 – $2.50 premium collected). That also give us a 40% downside range.\nThe strategy result provides three choices to exit the trade.\n\nBuy back the iron condor once it gets to an acceptable profit margin for you. I customarily look for 30%-60% profit for these kinds of trades in the current environment of volatility.\nBuy back the iron condor once it hits a loss threshold as determined by personal risk. This will happen with extreme movement. I customarily look at about 65%; although depending on my size, I will choose 50%. \nBuy back the spreads into the week before expiration, if all is going well and you have decided to hold the trade closer to the end of expiration. I have had many a trade go sideways, taking it down to the wire and not capturing gains, so I do not advise this.\n\nAnne-Marie Baiynd is a 20-year veteran trader of stocks, options and futures and is the author of \"The Trading Book: A Complete Solution to Mastering Technical Systems and Trading Psychology.\" She holds no positions in the investments she writes about for IBD. You can find her on  X at @AnneMarieTrades\nYOU MIGHT ALSO LIKE:\nInside IBD Big Cap 20\nFind The Best Growth Stocks Via This Highly Stringent Screen\nWant More Options Trading Strategies? Go Here\nWhy The 21-Day Exponential Moving Average Matters\nHere's The Latest IBD Podcast With A Rules-Based Approach To Investing","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2485215260"}