Selling_Options

[viking86]

Special Reward/Risk alert: this is not a trade that passes Ziv's selection criteria bc the stock price is below $20. But I feel it's a special situation considering its exceptionally high Reward/Risk ratio of 100% (meaning for every $1 you put down as Margin requirement you can gain max $1 in about 2.5 months, most other trades have a R/R ratio of typically 50% at best).

I just wrote 25x contracts of KNDI Mar 12P/Mar10P for a credit of $1 per contract. Potential income = 2.5K, cash required 2.5K. IMO this is a no brainer, low-risk trade since it matures 5 days after the company reports its 2014 10K in March which I expect will be a blowout report with a superstrong Q4. fwiw