Here, looking to buy 2 x the April 75 delta calls and sell a -50 call against, with the resulting setup having a net delta of around 100 (i.e., the delta equivalent of 100 shares of stock). This is more buying power efficient than being in the stock, which is why I'm doing things this way.
As of today's close, the theoretical price of the setup is around a 4.62 debit, so will look to get filled in that neighborhood. I don't have a particular profit target in mind, but the local high was on 12/5 with a high of 17 ... .
Metrics:
Buying Power Effect/Max Loss: 4.62 ($462)
Max Profit: Infinite
Break Even: 13.30/share
* -- Zero Extrinsic Back Ratio.
As of today's close, the theoretical price of the setup is around a 4.62 debit, so will look to get filled in that neighborhood. I don't have a particular profit target in mind, but the local high was on 12/5 with a high of 17 ... .
Metrics:
Buying Power Effect/Max Loss: 4.62 ($462)
Max Profit: Infinite
Break Even: 13.30/share
* -- Zero Extrinsic Back Ratio.
Note
Dropped some more ... . Filled for a 4.44 debit. Note
Closed the short call aspect for .49; cost basis now 4.93. Will look to re-erect the short call aspect should we get a pop at some point.Note
Sold the April -14C call against on this pop for a .90 credit. 4.03 cost basis.Trade closed: target reached
Closed for a 5.09 credit at the open; 1.06 ($106) profit. 26.30% ROC.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.