Opening (IRA): XBI March 15th 84 Monied Covered Call

... for an 81.63 debit.

Comments: 32.1% 30-Day IV.

My general preference for ETF IV is >35%, but there isn't much currently there in my ETF screener, and I'm already in a GDX position: TQQQ (52.3%); USO (38.1%); GDXJ (35.0%).

Buying a one lot and selling the -75 delta call against to emulate a 25 delta short put with "built-in" defense of the position via the short call.

2.37 max on BPE of 81.63; 2.90% ROC at max; 1.45% at 50% max.

Trade active:

I don't usually make a habit of rolling out ITM short calls, since the setup is amenable to max profit ... except in one instance: where the short call is in profit and convergent on 50% max. Here, the March 15th 84 is at 45% max (a little short of 50%), so rolling it out to April for a 1.37 credit, reducing my cost basis in the setup further and increasing my max potential profit to 4.66% ROC at max; 2.33% at 50% max as a function of BPE/cost basis.

80.26 cost basis.

Trade closed: target reached:

Out at 50% max (i.e., the difference between my short call strike and my cost basis). Closed for an 82.13 credit minus my cost basis of 80.26 = 1.87 ($187) profit; 2.33% ROC.