Sold a May 27th 16.5 short straddle at NY open, given the fact that it was one of the few underlyings with a 70+ implied volatility rank (it was, at any rate, this morning; it has come off that a bit).
The metrics:
Probability of Profit: 53%
Max Profit: $127/contract
Buying Power Effect/Max Loss: ~$287/contract; Undefined Risk
Break Evens: 15.23/17.77
Notes: With short strangles, I generally look to take profit at 25% max. In this particular case, this won't yield much if you only go with a one lot, so you may want to increase your lot size to be able to get at least $50 out of the trade ... .
The metrics:
Probability of Profit: 53%
Max Profit: $127/contract
Buying Power Effect/Max Loss: ~$287/contract; Undefined Risk
Break Evens: 15.23/17.77
Notes: With short strangles, I generally look to take profit at 25% max. In this particular case, this won't yield much if you only go with a one lot, so you may want to increase your lot size to be able to get at least $50 out of the trade ... .
Comment:
Bought to cover this for a small profit. Wanted to free up buying power for earnings plays ... .