... for an 11.02 debit.
Comments: Taking a directional shot post-earnings on weakness, buying the back month 90 delta call and selling the front month 30 delta that pays for all of the extrinsic in the long, resulting in a break even that is slightly below where the underlying is currently trading.
Metrics:
Buying Power Effect: 11.02
Break Even: 36.02/share
Max Profit: 2.98
ROC at Max: 27.04%
With these, I generally look to take profit at 110% of what I put them on for and/or look to roll out the short call to reduce my cost basis/downside break even should that not be hit.
Comments: Taking a directional shot post-earnings on weakness, buying the back month 90 delta call and selling the front month 30 delta that pays for all of the extrinsic in the long, resulting in a break even that is slightly below where the underlying is currently trading.
Metrics:
Buying Power Effect: 11.02
Break Even: 36.02/share
Max Profit: 2.98
ROC at Max: 27.04%
With these, I generally look to take profit at 110% of what I put them on for and/or look to roll out the short call to reduce my cost basis/downside break even should that not be hit.
Trade closed manually
Taking off more long delta where I can ... . Closed for an 11.83 credit on this little up move. .81 ($81) profit.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.