Ashish

That makes sense. The risk/reward ratio is poor. I was thinking that since this stock has such high price movement, we could open this trade for a week to capture the 10% or so profit. (The risk for one week is not that high). But this would be more of a speculative trade. Thanks, Kim.

Hi, I am a new subscriber to the service. I have some experience in option trading and am still trying to understand these strategies. If I understand correctly, stocks with significant price movements are good candidates for this strategy. Would we consider ARM stock a good candidate for this strategy? If not, why?