Mad Day Trader - Trade Alert - September 3, 2020 (CRUS)
It appears that the profit-taking I mentioned is starting to happen.
As a result, I do want to suggest a short term hedge position.
The stock to trade is Cirrus Logic, Inc. (CRUS). As I write this, CRUS is trading just under $60. It is trading at $59.59.
I am going to suggest a one half hedge position on the stock.
Here is the suggestion:
Buy to Open (1) September 18 - $60 Call @ $2.10
Buy to Open (2) September 18 - $60 Puts @ $2.20
Each position will cost $650.
Based on the nominal portfolio, I suggest you limit this trade to a 2 lot, which will cost $1,300 or 1.3% of the tracking portfolio.
This will result you buying 2 of the $60 calls and 4 of the 60 puts.
The trade uses short term options, so I am looking for a follow through on the move.
