[Opening Put Calendar Spread on Astrazeneca (AZN)/Buying Jan 45 Puts (AZNMI) and Selling Sept 45 Puts (AZNUI)/Net Debit Limit $1.50]
Dear Member,
I am opening a put calendar spread on Astrazeneca (AZN), one of the world's largest drug companies. I am buying the Jan 45 Puts (AZNMI) and selling the Sept 45 Puts (AZNUI) for a net debit of $1.50. The stock is currently bouncing down from resistance, hence the choice of a put spread. The options are currently somewhat overvalued and there is a volatility skew in place between the two months that should help this volatility based trade.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
CutLoss, Inc.
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