Trade Alert: 48-Hour Cashflow Trade – GRRR
Happy Cashflow Day!
While the herd is frozen by tariff uncertainty, we've found the opportunity they're missing.
The markets are a bit volatile today as investors worldwide wait for the U.S. to make a final decision on reciprocal tariffs. Most traders are sitting on their hands – but that's creating exactly the kind of mispriced premium opportunity our system is designed to capture.
This week's setup in Gorilla Technology (GRRR) shows elevated put premiums that our system has flagged as significantly overpriced. With strong earnings just reported and the market overreacting to potential risks, we have a classic 48-Hour Cashflow opportunity.
Important note: The “spread” (the difference between what buyers are offering and what sellers are asking) is wider than usual today. This means there's a bigger gap between the buy and sell prices, making it harder to get filled at our target price.
What this means for you: When you place your order, you might not get filled right away. It's okay to wait 30-60 minutes for a fill at our target price. If you're not filled within that time, you might need to adjust slightly or simply skip this week's trade. No pressure – there's always next Wednesday.
Trade Setup – GRRR (Expiring April 4, 2025)
Based on the current options chain showing GRRR at $21.05:
- Sell to open the $17 put / Buy to open the $15 put for a $0.20 credit or better
- Premium Collected: ~$0.20 per spread
- Capital Required: $180 per spread
- Max Loss: $180 per spread
- Break-even Level: $16.80
- Potential Cashflow: $20 per spread
- Return on Risk: 11%
IMPORTANT: I can see from the live options chain that GRRR is currently trading at $21.05, which means our $17 put strike is about 19% below the current price. This gives us an excellent cushion of safety while still collecting a nice premium. The options board shows a bid of $0.20 and ask of $0.35 for the $17 put, confirming our target entry price is realistic.
Current Options Chain Reference
Above: Today's options chain for GRRR showing our target strike prices highlighted. Note the $17 put with $0.20 bid and $0.35 ask.
This visual confirmation shows exactly where our trade sits in the current market. As you can see, with GRRR trading at $21.05, our $17 strike gives us plenty of downside protection.
Why This Trade Makes Sense Now
- Strong Earnings Just Released: GRRR reported impressive Q4 numbers on March 31, with revenue of $74.67M (beating estimates) and significantly raised 2025 guidance.
- Market Fear vs. Reality: While tariff concerns are valid, GRRR's exposure is limited in the 48-hour window we're trading. The market is overpricing the short-term risk.
- Defined Risk Strategy: Our protection spread limits our downside exposure to ensure no surprises, regardless of market movement.
What Makes This a Smart Trade (That Most Are Missing)
GRRR operates in the AI infrastructure sector with major clients in Egypt and Taiwan. While Wall Street is focused on potential U.S. tariff impacts, our research shows that many of their products are actually covered under the Information Technology Agreement, which eliminates tariffs for IT goods between WTO members.
This insight – which most retail traders don't have access to – gives us an edge in identifying this mispriced premium.
Execution Notes (Step by Step)
- Use a “limit order” for your entry: Set the exact price of $0.20 credit. This means you'll receive $0.20 for each spread you sell. Getting “$0.20 or better” means receiving $0.20 OR MORE (like $0.21 or $0.22) for the trade – more credit is always better for us as sellers.
- For Fidelity users: Go to “Trade” → “Options” → Select GRRR → Choose “Vertical” from the strategy dropdown → Select “Put” → Choose April 4 expiration → Select $17 for the short leg and $15 for the long leg → Set “Credit Limit Price” to $0.20
- Place a “GTC” (Good Till Canceled) order to buy back the SHORT PUT ONLY at $0.05: This means if the price of our $17 put drops to $0.05, we'll automatically close just that position and lock in 75% of our potential profit early. The long $15 put is just insurance that we don't need to close out.
- How long to wait for your fill: If you're not filled within 30-60 minutes at $0.20, consider either:
- Waiting until later in the day (sometimes prices improve in the afternoon)
- Simply sitting this one out (remember, we only need to win on most trades, not all of them)
- Exit deadline: Exit this position by Friday's close (4:00 PM Eastern) at the latest, regardless of price.
We'll provide an update as we approach expiration.
Stay disciplined,
Josh Belanger