... for a 26.33 debit.
Comments: Throwing a few bones at this high IVR/IV (57.5/109.4) single name post-earnings, selling the ~84 delta, 2 x expected move call against shares to emulate the delta metrics of a 16 delta short put, but with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 26.33/share
Max Profit: 1.67
ROC at Max: 6.34%
50% Max: .84
ROC at 50% Max: 3.17%
Will generally look to take profit at 50% max/roll out short call if my take profit is not hit.
Comments: Throwing a few bones at this high IVR/IV (57.5/109.4) single name post-earnings, selling the ~84 delta, 2 x expected move call against shares to emulate the delta metrics of a 16 delta short put, but with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 26.33/share
Max Profit: 1.67
ROC at Max: 6.34%
50% Max: .84
ROC at 50% Max: 3.17%
Will generally look to take profit at 50% max/roll out short call if my take profit is not hit.
Trade closed manually
Money, take, run ... . Closed for a 26.88 credit; .55 ($55) profit. 2.09% ROC for one day's "work."
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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.