Opening QQQ Oct 20 Butterfly +147C -2 148C +151C
https://www.tradingview.com/chart/OsBXckpZ/
Opened today when spot was ~144.70.
QQQ in Oct 20th monthly expiration options
long the 147 call
short two 148 calls
long the 151 call
credit .36
Theta .81 Delta 10.81
max profit 136 loss 164. Anything lower than the break-even of about 145.50 will profit between 36 and 136.
No risk to down side.
This trade is looking for a positive drift in price but will profit (70% probability) as long as the price does not blow through 48.50 and stay there.
Max profit occurs at the short strikes (148.00). Actual target 28 (price stays low or drops) to 34 (25% of max closed to minimize exposure).
In either winning scenario the trade will be closed with more than a week to expiration.
If price rises straight through it I will close the bull spread (+147 -148) in profit and roll the bear spread out in time with good probability of
either profit or scratch down the line.
Opened today when spot was ~144.70.
QQQ in Oct 20th monthly expiration options
long the 147 call
short two 148 calls
long the 151 call
credit .36
Theta .81 Delta 10.81
max profit 136 loss 164. Anything lower than the break-even of about 145.50 will profit between 36 and 136.
No risk to down side.
This trade is looking for a positive drift in price but will profit (70% probability) as long as the price does not blow through 48.50 and stay there.
Max profit occurs at the short strikes (148.00). Actual target 28 (price stays low or drops) to 34 (25% of max closed to minimize exposure).
In either winning scenario the trade will be closed with more than a week to expiration.
If price rises straight through it I will close the bull spread (+147 -148) in profit and roll the bear spread out in time with good probability of
either profit or scratch down the line.
Trade closed: target reached:
Closed at .17/contract. This the low target but price drifting up to exactly the short puts (max profit) is a long shot, it happens but I usually put this type of trade on to remove either up (with calls) or down (like this one with puts) side risk completely. The upside risk was minimal also, during this trade the price got only within ~$2 of the upside break-even point.
Trade closed: target reached:
Additional note to above the .17 per contract is profit -comm/fees.