With few "new" premium selling opportunities available, I'm looking to put on a short-term engagement trade that I will bail out of at the first sign of trouble (or, more likely, the first sign of profit).
Metrics:
Probability of Profit: 63%
P50: 68%
Max Profit: $310/contract
Max Loss/Buying Power Effect: $690/contract
Theta: 10.61/contract
Delta: -2.98/contract
Notes: I generally don't like to put on a premium selling setup in a low volatility environment, but I'm collecting nearly 1/3rd the width of the wings here in credit and the theta (10.61) rates as "drop dead gorgeous sexy." Moreover, the "lay" of the strikes here is good from a charting aspect, with the short call slightly above the 2016 high and the short put below that pesky 2040 resistance ... .
Depending on how things go, I may also consider putzing with strategically and repeatedly rolling the short call side out and to the 75% probability out-of-the-money strike and the short put side out to the 85% probability out-of-the-money strike at particular intervals or when it's profitable to do so.
Metrics:
Probability of Profit: 63%
P50: 68%
Max Profit: $310/contract
Max Loss/Buying Power Effect: $690/contract
Theta: 10.61/contract
Delta: -2.98/contract
Notes: I generally don't like to put on a premium selling setup in a low volatility environment, but I'm collecting nearly 1/3rd the width of the wings here in credit and the theta (10.61) rates as "drop dead gorgeous sexy." Moreover, the "lay" of the strikes here is good from a charting aspect, with the short call slightly above the 2016 high and the short put below that pesky 2040 resistance ... .
Depending on how things go, I may also consider putzing with strategically and repeatedly rolling the short call side out and to the 75% probability out-of-the-money strike and the short put side out to the 85% probability out-of-the-money strike at particular intervals or when it's profitable to do so.
ملاحظة
Filled for a $305/contract credit. I may look to roll up the short put side a tad tomorrow to the 85% out-of-the-money strike (same expiry) if I can do so profitably.ملاحظة
I'm probably being somewhat aggressive here with delta balancing the setup ... . Rolled up the short side to the 2030/2040 strikes (within the same expiry) for an additional $50/contract credit. I'll still shoot for taking the entire setup off at the original profit target (50% of $310 or about $155/contract).
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.