OPENING: SMH JUNE 19TH 129/170 SHORT STRANGLE
... for a 3.66 credit.
Metrics:
Max Profit: $366
Max Loss: Undefined
Buying Power Effect: 14.95
Credit Received/BPE: 24.5%
Delta/Theta: .44/3.97
Notes: Going out to the first expiry in which the at-the-money short straddle is paying greater than 10% of the stock price. Doing the basic delta under hedge drill on this one: delta under hedging at intervals to maintain net delta < theta, if possible, allowing theta to work its magic.
Metrics:
Max Profit: $366
Max Loss: Undefined
Buying Power Effect: 14.95
Credit Received/BPE: 24.5%
Delta/Theta: .44/3.97
Notes: Going out to the first expiry in which the at-the-money short straddle is paying greater than 10% of the stock price. Doing the basic delta under hedge drill on this one: delta under hedging at intervals to maintain net delta < theta, if possible, allowing theta to work its magic.
Trade active:
Sold the 12 delta 165 for .92 to delta under hedge; delta/theta at 10.95/6.10; scratch at 4.58.
Trade active:
Sold the 14 delta 160 for 1.10 to delta under hedge; delta/theta at 7.88/8.15; scratch at 5.68.
Trade active:
Sold the 150 for 1.32. Scratch at 7.00.
Trade active:
Pulling off the 165 C for .12 here. Scratch at 6.88. Resulting setup: June 129P/150C/160C; delta/theta 22.24/12.94 with 45 DTE.
Trade closed manually:
Closing here for 6.07, a .81 ($81)/contract winner with 42 DTE. This thing has been all over the place, so I'm glad to free up the buying power to get into a re-centered setup or get into something else.