GoPro Inc. (GPRO), $9.98.
[You must be registered and logged in to see this image.]
Trade: We recommend selling 10 Mar 9/7 bull put spread (50 DTE) for a net credit of $550. Note: Higher risk with 2/2 earnings, which could be make-or-break for this oversold stock.
Strategy: Gap breakout from long bottoming pattern daily and weekly.
Max Gain: $550 premium received which is realized if GPRO closes above $9 short strike by expiration.
ROI: 40% in 50 days ($550/$1,600 max loss), with 15.3% cushion to break even of $8.45.
Max Loss: $1,600 if GPRO closes under $7 strike, with cost basis of $8.45 if assigned.
Stop Loss: $8.58