NaughtyPines
Long

TRADE IDEA: XLF JUNE 21ST/FEB 15TH 21/24 UPWARD CALL DIAGONAL

AMEX:XLF   SELECT SECTOR SPDR TRUST AMEX FINANCIAL SELECT INDEX
Metrics:

Max Loss/Buying Power Effect on Setup: 2.18/contract
Max Profit on Setup: .82/contract
Break Even: 23.18 vs. 22.81 spot
Debit Paid to Spread Width Ratio: 72.7%
Theta: .26
Delta: 37.46

Notes: Here, I'm just shopping around for particularly weak sectors in which to put on bullish assumption plays that will have plenty of time to work out and/or reduce cost basis in. Typically, I shoot for a break even at or below where the underlying is currently trading, but am settling for a <75% debit paid to spread width ratio with a less than ideal break even here than what I typically do. Consequently, I'm paying less at the door than I ordinarily would, but still have a shot at getting a 27.3% return on cap invested in the event price finishes below the short call.
Trade active: Fiddled with the strikes and expiries a bit and went with a March 29th 20/Feb 1st 23.5 for a 2.50 debit, max profit 1.00/contract, max loss/buying power effect: 2.50/contract, 71.4% debit paid to spread width ratio.
Trade closed: target reached: Closed for a 3.00/contract debit (50% max; $50 profit; 20% ROC). Nice when they work out this quickly ... .
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out