METRICS:
Max Profit: $733/contract ($183 at 25% max; 16.7% Return on Cap On Margin)
Max Loss/Buying Power Effect: Undefined/~$1100 on margin
Break Evens: 47.67/62.33
Delta: 24.37
Theta: 5.11
Notes: I'm still feeling bullish, just not as bullish as I was at the beginning of the year -- hence the 24 long delta metric. From a price action perspective, low side break even and short straddle strikes line up nicely with "local low/highs" between 47 and 54. As with the other setups I worked (MAT, EA, See Posts Below), markets are showing wide in the off hours, so this might not be as attractive when markets open tomorrow, but it's nice to know that there are other possibilities on tap than playing CZR, RIG earnings for volatility contraction.
Other Obvious Setups:
April 18th 47 short put, 1.24 credit at the mid (.62 at 50% max), 45.76 break even, delta 24.37, theta 2.02.
April/June 45/55 upward call diagonal, 6.45 at the mid, break even of 51.45 versus 51.67 spot, debit paid to spread width ratio of 64.5%, max profit on setup of 3.55/1.78 at 50% max/27.5% return on capital. Markets are ghastly in the off hours for this: bid 5.06/mid 6.45/ask 7.85, so it'll have to be priced out during NY.
Max Profit: $733/contract ($183 at 25% max; 16.7% Return on Cap On Margin)
Max Loss/Buying Power Effect: Undefined/~$1100 on margin
Break Evens: 47.67/62.33
Delta: 24.37
Theta: 5.11
Notes: I'm still feeling bullish, just not as bullish as I was at the beginning of the year -- hence the 24 long delta metric. From a price action perspective, low side break even and short straddle strikes line up nicely with "local low/highs" between 47 and 54. As with the other setups I worked (MAT, EA, See Posts Below), markets are showing wide in the off hours, so this might not be as attractive when markets open tomorrow, but it's nice to know that there are other possibilities on tap than playing CZR, RIG earnings for volatility contraction.
Other Obvious Setups:
April 18th 47 short put, 1.24 credit at the mid (.62 at 50% max), 45.76 break even, delta 24.37, theta 2.02.
April/June 45/55 upward call diagonal, 6.45 at the mid, break even of 51.45 versus 51.67 spot, debit paid to spread width ratio of 64.5%, max profit on setup of 3.55/1.78 at 50% max/27.5% return on capital. Markets are ghastly in the off hours for this: bid 5.06/mid 6.45/ask 7.85, so it'll have to be priced out during NY.
