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Monday, June 13, 2022

Options trade : ARK Innovation ETF (ARKK) bearish trade

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6/7/2022

buy +4 July 22, 2022 $65 calls at $0.13 (prob ITM 2.43%)

sell -4 July 22, 2022 $53 calls at $1.13 (prob ITM 17.27%)

  • net credit:  $1.00 x 400 =  $400
  • ARKK = $44.38 
  • margin:  $4800
  • ARKK was overbought
  • 45 DTE


6/10/2022

buy back the four short calls ($53 strike) to take profits

leave open the long calls for the next call spread

PROFIT:  $212