... for a 1.65/contract credit.
Metrics:
Max Profit: $165/contract
Max Loss/Buying Power Effect: $335/contract
Break Evens: 263.35/356.65
Delta: -.77
Theta: 2.4
Notes: With earnings in the rear view mirror, rank/implied is still high here at 67/53. Going small, directionally neutral in the December cycle, collecting nearly one-third the width of the wings; will look to take profit at 50% max.
Metrics:
Max Profit: $165/contract
Max Loss/Buying Power Effect: $335/contract
Break Evens: 263.35/356.65
Delta: -.77
Theta: 2.4
Notes: With earnings in the rear view mirror, rank/implied is still high here at 67/53. Going small, directionally neutral in the December cycle, collecting nearly one-third the width of the wings; will look to take profit at 50% max.
Comment:
Markets are fairly wide, but I wasn't willing to settle for much less than one-third the width of the wings ... . Only had to penny down to get filled.
Trade active:
Rolling the 355/360 (at 60% max) down to the 325/330 for a .70/contract credit to delta balance/underhedge. Scratch at 2.35/contract.
Trade active:
I hate rolling down into weakness, but it's important to stay mechanical. Rolling down to the 290/295 for an .82/contract credit on put side test/break. Scratch at 3.17/contract.
Trade active:
Ugh. NFLX rallying here ... . Covering the put side for a .68/contract debit; rolling out the call side as is to the Jan cycle for an .08/contract debit; and selling the Jan 260/265 short put vertical against for a 1.12/contract credit. Scratch at 3.17 - .68 - .08 + 1.12 = 3.53/contract.