**EDIT: the level of AI bots commenting is unreal, so just ignore them and report them.**
The timing is from a complicated algo which contains fundamental, technical and descriptive as well as ownership components, but the trade formulation might be something this crowd might be interested in.
They call this the "stupid" spread because it is basically a bet in one direction. The stock was trading around the short put strike when I opened it.
To me, financing a bet is always a plus, but the better trade might have been a single call and not a spread, financed with a longer dated put spread.
Cash on cash return is $4 on $1, but the margin is actually $3.5 for the spread so the actual return on margin is smaller.
Hope you all enjoy the set up and the trade.
The profile is as follows:
1. Above 325 - $4 gain
2. 317.5 to 320 - $1 loss
3. Below 315 - $3.5 loss
4. Between call strikes - stock price minus 320 minus $1
5. Between put strikes - 317.5 minus stock price minus $1
https://preview.redd.it/use77pmc0a4h1.png?width=551&format=png&auto=webp&s=88ba4547e28a48a9098a9ca551544a7e4299a64e