Letting The Game Come To Us
We’ve had three successful exits of 200% or more trading options on this Chinese ADR. It still looks good fundamentally: Chartmill gives it an overall technical rating of 10 (out of 10), an overall fundamental rating of 7, and a valuation rating of 8.
I’ve waited for it to come back a little bit before trading it again, and it’s done that.
With our trade below, we’ll have a shot at another 200% gain over the next few weeks; our worst case scenario over that time frame will be a loss of 100%.
Details below.
Today’s China Trade
The stock is QIFU Technologies ( QFIN 1.15%↑), and our trade is a vertical spread expiring on March 21st, buying the $40 strike calls and selling the $45 strike calls, for a net debit of $1.60. The max gain on 2 contracts is $680, the max loss is $320, and the break even is with QIFU at $41.60. This trade filled at $1.60.
Exiting This Trade
I’m going to set a GTC order to exit this one at about $4.75, and lower that price, if necessary, as we approach expiration.
Exited my call spread today at $4.10, for a gain of 156%.