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NaughtyPines
Nov 11, 2020 3:57 PM

OPENING (IRA): KRE JANUARY 15TH 40 SHORT PUT 

SPDR S&P Regional Banking ETFArca

Description

... for an .81/contract credit.

Notes: With 30-day at 57.4% and expiry-specific at 42.3%, selling premium in one of the underlyings on my IRA shopping list. (Current yield 3.02%). I would ordinarily just ladder out, but this isn't exactly weak relative to where it's been, so want to keep powder dry for it in the event it weakens further. 2.07% ROC at max as a functional of notional risk; 11.6% annualized.

Trade active

With KRE at the top of my ETF board for 30-day IV (nearly 44%), throwing a little bit of caution to the wind and adding a rung out in March at the 39 strike for 1.08 (there isn't any February monthly yet). Total credits collected of 1.89.

Trade closed manually

Out of the January 15th 40 for .10 here, .71 ($71) profit/contract, 1.81% ROC as a function of notional risk.
Comments
PropNotes
like this idea, put some on as well
NaughtyPines
@Pholesolus, Awesome. I went small contract wise; will add later if we get further weakness. If we don't, I'll regret not having laddered out. Lol.
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