I wanted to do a guts spread for TUP a day before their quarterly results and found something better.
I made a short straddle on a higher strike of 12.50 for Januari 2021 and added a long call as protection.
By doing this combination I win between strikes 6.50 and 19 and can earn up to 100% of the margin invested at strike 12.50.
My max loss for the call is €1.4K knowing I have shares on which I’ll earn a lot.
If it goes down, max loss if it goes bankrupt is 5.9K.
If it goes below 6,5 and can use the -puts to buy more shares. It seems to be a very good combo for a decent margin.
Bought here 10 calls at 80$ each.