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Started By
Message
Options traders, could you give me some real life strats for a play on QSR?
Posted on 10/8/24 at 1:53 pm
Posted on 10/8/24 at 1:53 pm
I'm proficient in options terminology, but obviously not in practice. So given a scenario like below, how would you approach the actual options investing?
Scenario- I believe that QSR (Restaurant Brands International) will move from where it is now ~$70 to at least $85/share within the next 6 months. I'm so confident that I'm not interested in any hedges. I'm not interested in owning any of the underlying.
I understand that I could just buy Calls at say 80 or 85 for April, but I'm assuming most would spread out their money across multiple strikes and expiration dates. Any suggestions of how others would approach this would be greatly appreciated.
Scenario- I believe that QSR (Restaurant Brands International) will move from where it is now ~$70 to at least $85/share within the next 6 months. I'm so confident that I'm not interested in any hedges. I'm not interested in owning any of the underlying.
I understand that I could just buy Calls at say 80 or 85 for April, but I'm assuming most would spread out their money across multiple strikes and expiration dates. Any suggestions of how others would approach this would be greatly appreciated.
3
Posted on 10/8/24 at 4:06 pm to Kingpenm3
If you firmly believe it will move up, then put on a risk reversal..
totally hypothetical since I haven't looked at the strikes, dates, etc:
sell the $60/$50 puts spread and buy the $85 calls all for next march.
totally hypothetical since I haven't looked at the strikes, dates, etc:
sell the $60/$50 puts spread and buy the $85 calls all for next march.
This post was edited on 10/8/24 at 4:06 pm
Posted on 10/9/24 at 6:27 am to Kingpenm3
Just do a call spread.
"buy to open" the 21st Mar 2025 $75 Call at $2.80
"sell to open" the 21st Mar 2025 $80 Call at $1.40
This leaves you with a debit of $1.40. If QSR is above the $80 strike at expiration you will have a 260% return. You are risking $140 to make $360.
"buy to open" the 21st Mar 2025 $75 Call at $2.80
"sell to open" the 21st Mar 2025 $80 Call at $1.40
This leaves you with a debit of $1.40. If QSR is above the $80 strike at expiration you will have a 260% return. You are risking $140 to make $360.
This post was edited on 10/9/24 at 6:29 am
Posted on 10/9/24 at 6:51 am to frogtown
Plenty of ways to play that, that’s the good thing about options. Depends on how much risk he’s willing to take. If willing to own the stock long term just sell the March 70 puts and buy the March 70 calls.
Posted on 10/9/24 at 4:39 pm to Kingpenm3
If you convinced it will go up to 85 from 70, then you should buy calls as close to 70 that you can get and sell calls at 85 all with the same expiration date. This will give you the target price of 85 while recouping some of the option premium form the purchase. Might be able to take on a bigger position as well.
This is for entertainment purposes only and not meant as any kind of investment advice.
This is for entertainment purposes only and not meant as any kind of investment advice.
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