- Underlying: DDD
- View: Cautiously optimistic, expecting consolidation above $2.90 with potential to test $3.37 resistance. The stock has stabilized post-offering, and RSI is rising from oversold levels. The extremely low IV Percentile (11.95%) suggests options are cheap, favoring premium selling strategies.
- Strategy Type: Credit Spread / Defined Risk
- Option Contract Portfolio:
- Sell 1 DDD Put, Strike $2.50, Expiry 2026-07-17
- Buy 1 DDD Put, Strike $2.00, Expiry 2026-07-17
- Max Gain & Loss:
- Max Gain: Net Credit Received = ~$0.10 (Mid: $0.125 - $0.025)
- Max Loss: (Strike Difference - Net Credit) = ($0.50 - $0.10) = $0.40 per share
- Initial Cost/Credit: Initial Net Credit of ~$0.10 per share.
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