Options Strategy on FTCH

UK-based luxury e-tailer Farfetch last made headlines at the end of August when it announced plans of major stake acquisition in Yoox Net-a-Porter YNAP. Advancing ambitions to create one leading major platform for high-end brands and sending both stocks soaring, the deal is expected to close by the end of 2023. A few days ago, Morgan Stanley increased the price target of FTCH from $30 to $32 but also gave it an Overweight rating. Retail is also facing issues, though luxury retail moves differently.

Here's my bullish options strategy on FTCH that makes up to 15% (26% annualized) while protecting my investment from up to a 57% drop in price.

Buy 1 $10 call
Sell 1 $12 call
Sell 3 $5 puts
Exp 4/21/23

$1480.30 required to invest.