I’m a sucker for Mickey Mouse and look to trade Disney whenever the opportunity arises. The stock formed a Fade the Fear trade setup last month. Here’s how I traded it and what you can learn about scaling in and out with bull puts.
-Scaling in & out
-bull put spread
-Fade the Fear
1) Company that I like (blue-chip), treat it like S&P 500
2) Oversold situation, so much so that I want to lean bullish (contrarian)
3) Spike in IV, or I can go and sell far OTM puts.
3 Contracts Full Size
Tier One: 1 Jan $135/$130 bull put @ 50 cents. Target: 5 cents (capture $45)
Tier Two: 1 Jan $135/$130 bull put @ 78 cents. Target: 28 cents
Tier Three: 1 Jan $135/$130 bull put @$1.00
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