Hilliton324
2023-11-03

$Sea Ltd(SE)$ Those who are planning to buy SE stock and hold for Long term if stock drops below $41, you can do this. Buy 100 stock of SE, Sell 1March 2024 45 covered calls and collect approx $600. Take this money, buy Dec 15th 55 calls for $1 or less. So you will get 6 contracts. If SE shoots up before earnings or after , call premium will increase. Even if SE comes to 48 quickly, premium will increase. Then close your long calls. Let's say stock never went up and your call goes worthless, all you have to do is hold stock until March 15th. Off course downside protection is not there.

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Comments

  • JIAMU OWL
    2023-11-06
    JIAMU OWL
    in any case your setup is in the green as SE rockets up. cheers

    • Agxm
      What is the risk of this method?🤔
  • JIAMU OWL
    2023-11-06
    JIAMU OWL
    hi bro. should be 15 Mar 24 call. looks like reverse diagonal call spread. the long shares is added because you wanna add more delta to the trade as you are bullish on the stock? 
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