TRADE IDEA: XME JUNE 24TH 19/23.5 SHORT STRANGLE
Following the premium. With a nearly 70% implied volatility rank and an implied volatility slightly north of 50%, I'm going nondirectional here (what's new) with this short strangle.
Metrics:
Probability of Profit: 65%
P50: 78%
Max Profit: $107/contract
Max Loss/Buying Power Effect: Undefined/~$250/contract
Theta: 2.55/contract
Delta: -7.55/contract
Notes: I'll shoot for taking this off at 50% max profit ... . Premium selling opportunities in underlyings with >70 implied volatility rank and >50 implied volatility are still thin in this market. My choices were XME, GDX, and GDXJ. I already have a couple of short strangles I layered on in GDX, so XME it is.
Metrics:
Probability of Profit: 65%
P50: 78%
Max Profit: $107/contract
Max Loss/Buying Power Effect: Undefined/~$250/contract
Theta: 2.55/contract
Delta: -7.55/contract
Notes: I'll shoot for taking this off at 50% max profit ... . Premium selling opportunities in underlyings with >70 implied volatility rank and >50 implied volatility are still thin in this market. My choices were XME, GDX, and GDXJ. I already have a couple of short strangles I layered on in GDX, so XME it is.
Comment:
Filled for $107 at the open.
Trade closed manually:
Taking this off a little early at 42% max profit (covered for a $61 debit) ... .