Mar. 4 at 3:47 PM
✔️ I’ve discussed this trade in the past but you should read this as an example of a more relaxed trading style than functioning in the day to day market like I do. It’s all based on projections without any guarantees. And it can also be used on almost any security that is volatile and that you think has a prolonged upward move in front of it.
The trade is to buy
$SNXX (which is upped today) for about
$35. Then sell the Jan
$65 strike for about
$15. Your net cost is then reduced to about
$20. By projecting that SNDK moves up about 31% between now and January, we can expect SNXX (a 2X derivative) to move up about 62%. That puts SNXX near
$60. That’s a triple (or a 200% gain) over the next 10 months based on the initial investment.
The one additional benefit here is that profits from the short Call option (if held to expiration) does not have to be claimed until the Call expires. That’s in January of 2027. Taxes on that option will not have to be paid until April 15th of 2028.
