Opening (IRA): XBI January 17th 92 Covered Call
... for a 90.47 debit.
Comments: IVR/IV isn't fantastic here at 11.1/26.3%, but there is some IV skew to take advantage of on the call side -- 31.34% at the 92 call relative to 26.62% at the 92 put.
Selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put to take advantage of the IV skew and the built-in defense of the short call. From a charting standpoint, the break even sets up nicely with the "RFK, Jr. low" in November.
Metrics:
Buying Power Effect/Break Even: 90.47
Max Profit: 1.53
ROC at Max: 1.69%
50% Max: .77
ROC at 50% Max: .85
Comments: IVR/IV isn't fantastic here at 11.1/26.3%, but there is some IV skew to take advantage of on the call side -- 31.34% at the 92 call relative to 26.62% at the 92 put.
Selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put to take advantage of the IV skew and the built-in defense of the short call. From a charting standpoint, the break even sets up nicely with the "RFK, Jr. low" in November.
Metrics:
Buying Power Effect/Break Even: 90.47
Max Profit: 1.53
ROC at Max: 1.69%
50% Max: .77
ROC at 50% Max: .85
Nota
Rolling, rolling, rolling ... . Down and out from the Jan 17th 92 to the Feb 21st 90 for a 2.94 credit; 87.83 break even.Nota
Rolling down and out from the Feb 21st 90 to the March 21st 89 for a 1.73 credit; 86.10 break even.Trade fechado manualmente
Taking the opportunity to close out my most "at risk" setup for a small profit. Out for an 86.65 credit; .55 ($55) profit. Still have the March 21st 86's on.
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Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.