NaughtyPines
Long

OPENING: FCX APRIL 18TH 13 SHORT STRADDLE

NYSE:FCX   FREEPORT-MCMORAN INC
... for a 1.90/contract credit.

Metrics:

Max Profit: $190/contract
Max Loss/Buying Power Effect: Undefined/~$260 (on margin); full notional (cash secured)
Break Evens: 11.10/14.90
Delta: 31.37
Theta: 1.05

Notes: Implied volatility's still pretty high post-earnings at 42%, so taking a modestly bullish assumption shot with a position that emulates the delta metrics of a 30 delta short put while bringing in more credit, albeit with some upside risk above 14.90. In comparison, the 30 delta shortie in April (the 11 strike) is bringing in .47 with a down side break even of 10.53. I'll look to take profit at 25% max (.48) which would be about an 18.3% return.
Trade active: Rolling out to May "as is" for a .31/contract credit to maintain around a 30 delta long metric; scratch at 2.21/cost basis of 10.79 if assigned on the 13 shortie.
Trade active: Rolling the May 13 short straddle all the way out to the Aug 14 short straddle for a realized gain and a .93/contract credit; scratch at 3.14. Unfortunately, there was no June available.
Trade closed: target reached: Covered here for a 2.82/contract debit, a .32 ($32) profit/contract (around 10% max).
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