The Bat is back with the yutes to introduce “The Stupid Trade,” a 60%+ POP, high return, directional strategy that turns out to be not so stupid after all.
The Delta Buster (“The Stupid Trade”) combines two strategies that want the same thing, thus why some may find it a “stupid” play--you’re betting double on one assumption. But Tony explains that this is one of those trades that’s perfect for folks with smaller accounts who want to maximize their profits when they get them.
The bearish version of this trade is composed of:
In the case that you're bullish, you would reverse the put spread for a call spread, and vice versa.
You’ll find in either scenario that your max loss and max profit net out to about the same, and you’ll have a nice healthy POP. Widen or narrow both spreads to maximize or minimize your risk and gains.
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