🎯 $Illumina(ILMN) Options Strategy: Modified Bullish Covered Call
- Underlying: ILMN
- View: Cautiously Bullish. Strong uptrend, but short-term overbought (RSI >80) suggests potential for consolidation or minor pullback before resuming the move towards the $200 psychological level.
- Strategy Type: Debit Spread / Income Generation with Positive Theta & Delta
- Option Contract Portfolio:
- Buy 100 shares of ILMN @ $194.33
- Sell 1 ILMN 18 Jul 2026 $200 Call @ $4.24 (Mid-Price)
- Buy 1 ILMN 18 Jul 2026 $185 Put @ $2.90 (Mid-Price)
- Max Gain & Loss:
- Max Gain: $1,191 [($200 - $194.33 + $4.24 - $2.90) * 100]. Capped at the short call strike.
- Max Loss: $2,191 (if stock goes to $0) [($194.33 - $185 + $2.90 - $4.24)*100]. Protected at the long put strike.
- Initial Cost/Credit: Net Debit of $19,299 [($194.33 * 100) + ($2.90 * 100) - ($4.24 * 100)]
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