The new IPO’s that we have seen over the last year have shown some amazing returns.
Names like BYND, LYFT, and now SLACK have been extremely active since they have started trading which makes them ideal candidates for us to trade.
LYFT – Bearish Trade Opportunity
With the entire market working on new all time highs this week, we will be looking to lean bearish with our new Options Trade Of The Week. We are expecting a much deserved pullback over the next few weeks.
For this week’s trade we will be trading long put options on LYFT.
Over the last few weeks we have been selling call spreads for our Trades Of The Week. To show the flexibility that options offer, we will instead be looking at buying a long put on LYFT to position ourselves for a bearish move lower.
Buying a long put is an aggressive approach as it only gives us one way of making money. LYFT will need to make a decent move lower and will have to do so quickly in order for us to make money.
- We will be using the July 19 Monthly options with 28 days left.
- We will be buying the 62.5 puts looking to get filled for $3.00 or better.
For a complete break down of our Trade Of The Week make sure you review the video below.
You will learn the details of how we are placing trade trade including how we plan on managing it from start to finish.
We are still holding EBAY and we closed out of AMD for a nice profit this week.
Feel free to contact me directly with any questions you might have. Mike@netpicks.com.