Opening (IRA): SMH Feb/March 170/154 Short Put Ladder
Comments: My broad market positions are getting a little crowded and busy, so deploying some buying power into some sector ETF's, targeting the <16 delta strike paying around 1% of the strike price in credit.
30-day isn't bad here at 36.3%, but this isn't exactly as weak as it has been, so it's possible that a better entry could be had. Because of that, I'll look to potentially add should better opportunities present themselves.
The goal here is to collect premium and/or to reduce cost basis in shares that you might be eventually assigned and not necessarily to get ideal entries; there is, after all, some "slop"/room to be wrong with these. That being said, being patient and getting paid something decent for a lower strike is always a good thing, since a lower strike means a smaller buying power effect.
February 17th 170: 1.74 credit
March 17th 154: 1.54 credit
30-day isn't bad here at 36.3%, but this isn't exactly as weak as it has been, so it's possible that a better entry could be had. Because of that, I'll look to potentially add should better opportunities present themselves.
The goal here is to collect premium and/or to reduce cost basis in shares that you might be eventually assigned and not necessarily to get ideal entries; there is, after all, some "slop"/room to be wrong with these. That being said, being patient and getting paid something decent for a lower strike is always a good thing, since a lower strike means a smaller buying power effect.
February 17th 170: 1.74 credit
March 17th 154: 1.54 credit
Trade closed manually:
Closed the February 17th 170 for a .52 debit; 1.22 ($122) profit.
Comment:
Closed the March 17th 154 for a .58 debit; .96 ($96) profit.