... for a 4.83/contract debit. Fading the treasuries move higher ... again.
Here are the metrics:
Max Loss On Setup: $483 Max Profit On Setup: $217 Break Even on Setup: 121.17 Debit Paid/Spread Width Ratio: 69% Theta: .32 Delta: -42.26
Notes: Will look to take profit at 20% max. Ordinarily, I like to do these skip month (e.g., Aug/Oct) to give me an additional roll opportunities, but wanted to keep things small (going out farther in time requires a wider spread to achieve a break even at or above spot). The Aug/Oct setup would be the 119/129 for a 7.72/contract debit, max profit on setup of 2.28, debit paid/spread width ratio 77% ... .
Trade closed manually
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Turning this into a scalp, since we're always one tweet away from 122 (or so it seems). Covering for a 5.17/contract credit; .34 ($34) profit/contract (7% ROC).
Excellent close! Considering daily p/l on max (max profit/dte) 217/58 (front month) or $3.74, this is over 9 times that with buying power reduction (capitol) tied up for only one day!
baerrus
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Call diagonal, not put diagonal
NaughtyPines
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@baerrus, Omg, I must be going bonkers or my eyesight is getting bad. It was an Sept 126 long put/Aug 119 short put ... .