Marriott bullish inclined defensive options - 18 Sep Expiry
Rolling on my previous MAR trade that expired on the 28 Aug. I decided to continue with MAR as price on the 25 Aug seemed to be having trouble rising. RSI was also at a high band of 65. Overall, price seemed to be pretty predictable and not volatile at this point.
As my defensive trade is focused on picking off premium. I do not expect price to rise and as such, I structured a bullish inclined trade with a Max gain at strike 109.96 ($1677) and breakeven at 111.27. Hoping that my contracts can just expiry worthless.
If price ranges or goes bearish I will collect est. $1079
Sold 14 Calls @ 0.93, Strike 110
Bought 1 Call @ 2.13 Strike 104
BP block: 13k
As my defensive trade is focused on picking off premium. I do not expect price to rise and as such, I structured a bullish inclined trade with a Max gain at strike 109.96 ($1677) and breakeven at 111.27. Hoping that my contracts can just expiry worthless.
If price ranges or goes bearish I will collect est. $1079
Sold 14 Calls @ 0.93, Strike 110
Bought 1 Call @ 2.13 Strike 104
BP block: 13k
Trade closed: target reached:
Closed with a sweet profit of USD 1497.45. I need to relook my trade structure as my covering position does not make up for volatility spikes and if the price goes past the strike.
Mar's price move beyond the strike was brief and quick but it is a clear gap in my strategy that I need to close
Mar's price move beyond the strike was brief and quick but it is a clear gap in my strategy that I need to close