
Sign up to save your podcasts
Or


ServiceNow is down almost while the market sits at all-time highs. That kind of divergence is exactly what options traders look for.
The trade: buy one 110 put, sell three 100 puts for a net credit of $190. That structure gives you a break-even near $95, right where the stock was trading just a few weeks ago. Probability of profit sits at 86% and theta decay runs at $10 a day. The only catch is buying power this one uses about $7,600. But buying a 75 put as a wing brings that down under $3,000 with almost no impact on the credit or the probability.
By tastylive4.9
8989 ratings
ServiceNow is down almost while the market sits at all-time highs. That kind of divergence is exactly what options traders look for.
The trade: buy one 110 put, sell three 100 puts for a net credit of $190. That structure gives you a break-even near $95, right where the stock was trading just a few weeks ago. Probability of profit sits at 86% and theta decay runs at $10 a day. The only catch is buying power this one uses about $7,600. But buying a 75 put as a wing brings that down under $3,000 with almost no impact on the credit or the probability.

8,773 Listeners

4,090 Listeners

3,223 Listeners

1,351 Listeners

1,153 Listeners

8,102 Listeners

238 Listeners

1,037 Listeners

8,038 Listeners

2,159 Listeners

307 Listeners

1,568 Listeners

412 Listeners

72 Listeners

16,409 Listeners