New Position - Short QIHU...

Here's a new position that I built out using the trade optimization model. There are quite a few interesting things to note with the model that I'll follow up with later.

It's also important to note that I built this trade out earlier in the day and the stock has moved quite a bit since then.

The trade:

Long: 112 Shares @ $63.87
Long: 3 September $65 Puts @ $3.80
Long: 3 September $62.50 Puts @ $2.75
Long: 2 September $60 Puts @ $2

The breakeven on the downside is roughly $59 and just less than $85 on the upside. With a max loss of $2,200, the expected value is +$760.

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Modeling Credit Risk...

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