NaughtyPines

XBI -- HIGH VOLATILITY SPDR IN THE ROUGH

AMEX:XBI   SPDR S&P BIOTECH ETF
With volatility having bled out of the broad market indices, I'm looking for any premium selling plays (in addition to earnings plays) that I can find.

With an IVR             rank of 75 and at or near all-time highs, XBI             ( S&P             Biotech ETF ) presents a possible premium selling play via short strangle or iron condor.

Possible set-ups:

Aug 21 235/240/300/305 IC             ; 66% POP; BE's at 238.77/301.23; 1.23 credit; BPE $377.
Aug 21 240/300 short strangle; 72% POP; BE's at 235.32/304.68; 4.68 credit; BPE undefined.

NOTE: Ordinarily, I prefer to go as near to 45 DTE             on initial set-up as possible. It is possible that because I'm looking at set-ups in off hours that some strikes are "off quote" or that the prices of them are currently unavailable, particularly for the Aug 28 weekly expiry, which is 41 DTE             and more ideal for my purposes.

Additionally, I am tempted to go with a contrarian play and skew any IC/strangle set-up to the bearish side (it is, after all, at all-time highs). However, I am resisting the urge and will play this SPDR neutrally.
Ideas Scripts Chart
United States
United Kingdom
India
España
France
Italia
Polska
Brasil
Россия
Türkiye
Indonesia
日本
한국
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out