OPENING: DKS MARCH 17TH 43/50/50/57.5 IRON FLY
... for a 4.35 ($435)/contract credit. I put this on earlier in the week, but neglected to post it here ... . (High implied volatility rank; high implied volatility; it's in the 95th percentile of where implied volatility has been in the past six months; its background implied volatility is at 47%).
Metrics (Currently):
Max Profit: $418/contract
Max Loss/Buying Power Effect: $332/contract
Break Evens: 45.82/54.18
Theta: 5.66/contract
Delta: 1.33/contract
Notes: DKS earnings are currently scheduled for March 14th. The notion here was to play the underlying for sideways chop leading up to earnings, but take it off shortly before. We'll see how that works out .... . If I get an opportunity to close it out in profit before earnings, I may play it again for the earnings announcement ... .
Metrics (Currently):
Max Profit: $418/contract
Max Loss/Buying Power Effect: $332/contract
Break Evens: 45.82/54.18
Theta: 5.66/contract
Delta: 1.33/contract
Notes: DKS earnings are currently scheduled for March 14th. The notion here was to play the underlying for sideways chop leading up to earnings, but take it off shortly before. We'll see how that works out .... . If I get an opportunity to close it out in profit before earnings, I may play it again for the earnings announcement ... .
Trade closed: target reached:
Covered for 3.26 at open on the vol crush; in for 4.18; out for 3.26; .92 ($92) gross profit/contract.