Having the highest implied volatility of all the SPDR's currently, I'm looking to sell a small amount of premium here at the 30 delta strike approximately 45 DTE             as a possible alternative to doing a covered call in a mining underlying (such as GDX             , GDXJ             , KGC             , AUY             , HL, etc.).

Here are the metrics:

Probability of Profit: 74%
P50: 89%
Max Profit: .66 ($66)/contract
Max Loss: $2384 (if the stock went to 0 between now and expiration, and you did nothing)
Buying Power Effect: $245/contract
Break Even: 23.84

Notes: As with all premium selling setups, I look to take off the trade at at least 50% max profit. However, since this is a naked short put, I look to roll the option out for duration when the value of the put exceeds twice the credit received (which means price has moved toward the short put, such that its value has increased). When that occurs, I roll the short put down and out to a strike and an expiry in which I can receive a credit for the roll.
Comment: Got this filled for .60. Were I to have been patient, I could've gotten filled for that .66 ... .
Trade closed manually: Covering today for a .35 db. Net profit of $24/contract after fees/comms. Small winner, but I figured I'd reduce some exposure to miners on this little pop here. I've got "a few" individual names on ... .
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
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
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder 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