OPENING: TLT AUG/SEPT 119/126 DOWNWARD PUT DIAGONAL
... for a 4.83/contract debit. Fading the treasuries move higher ... again.
Here are the metrics:
Max Loss On Setup: $483
Max Profit On Setup: $217
Break Even on Setup: 121.17
Debit Paid/Spread Width Ratio: 69%
Theta: .32
Delta: -42.26
Notes: Will look to take profit at 20% max. Ordinarily, I like to do these skip month (e.g., Aug/Oct) to give me an additional roll opportunities, but wanted to keep things small (going out farther in time requires a wider spread to achieve a break even at or above spot). The Aug/Oct setup would be the 119/129 for a 7.72/contract debit, max profit on setup of 2.28, debit paid/spread width ratio 77% ... .
Here are the metrics:
Max Loss On Setup: $483
Max Profit On Setup: $217
Break Even on Setup: 121.17
Debit Paid/Spread Width Ratio: 69%
Theta: .32
Delta: -42.26
Notes: Will look to take profit at 20% max. Ordinarily, I like to do these skip month (e.g., Aug/Oct) to give me an additional roll opportunities, but wanted to keep things small (going out farther in time requires a wider spread to achieve a break even at or above spot). The Aug/Oct setup would be the 119/129 for a 7.72/contract debit, max profit on setup of 2.28, debit paid/spread width ratio 77% ... .
Trade closed manually:
Turning this into a scalp, since we're always one tweet away from 122 (or so it seems). Covering for a 5.17/contract credit; .34 ($34) profit/contract (7% ROC).