Thesis
Did not pay attention to TA at all.
Stock doubled in price today, causing extreme rise in IV pricing on options. Opened a debit calendar spread to take advantage of high IV.
Discovery
Looked at trending tickers for the day.
Correlation
N/A
Entry
+2 7.00C Feb 24 @ 1.48
-1 5.00C Feb 10 @ 1.61
(12.95 fees)
Net: -$148.95
Here is a graphic which shows the expected P&L of this option spread.
optionstrat.com/IxH43VpPdEDH
Did not pay attention to TA at all.
Stock doubled in price today, causing extreme rise in IV pricing on options. Opened a debit calendar spread to take advantage of high IV.
Discovery
Looked at trending tickers for the day.
Correlation
N/A
Entry
+2 7.00C Feb 24 @ 1.48
-1 5.00C Feb 10 @ 1.61
(12.95 fees)
Net: -$148.95
Here is a graphic which shows the expected P&L of this option spread.
optionstrat.com/IxH43VpPdEDH
Trade closed: stop reached:
BTC the short leg at a small profit on that leg; the 2 contracts on the long legs lost money, net P&L is -$120.
Of note, the short 5C is 90% profitable - it might be prudent to BTC this leg and collect profits on it, then wait for a reversal to the upside.