If you agree that AFRM will continue its uptrend and stay atop its 50-day moving average line in chart), consider the following trade that relies on the stock remaining above $133 (through expiration in seven weeks. Buy to Open AFRM 31Dec 128 put (AFRM211231P128) Sell to Open AFRM 31Dec 133 put (AFRM211231P133) for a credit of $1.85 (selling a vertical) This credit is $0.05 less than the mid-point of the option spread when AFRM was trading at $149. Unless the stock rises quickly from here, you should be able to get close to this amount. Your commission on this trade will be only $1.30 per spread. Each spread would then yield $183.70. This trade reduces your buying power by $500 and makes your net investment $316.30 ($500 – $183.70) for one spread. If AFRM closes above $133 on December 31, both options will expire worthless and your return on the spread would be 58% ($183.70/$316.30).
Lithium Triangle a "Treasure Trove" for the Popular Energy Metal
Lithium is the most precious commodity of the green revolution, and experts predict an exploding demand for the energy metal. Surrounded by multi-billion dollar assets, one little-known small-cap company in a renowned location in South America may become a strong link in the lithium supply chain due to a monster acquisition.
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