OPENING: XOP JUNE 15TH 32 LONG/APRIL 20TH 35 SHORT CALL DIAGONAL
Max Profit: $51/contract* (20.5% )
Max Loss: $249/contract**
Notes: As with any diagonal, there aren't many metrics to look at. If you just leave the setup alone, however, your max loss is $249/contract, and your max profit is $51/contract. Max profit is realized with a finish above the 35 strike at expiry; max loss, with a finish below 32 and no rolls of the short call to reduce cost basis.
Another way to look at the setup is that you're paying only 2.49 for a 3.00 spread ... .
* -- Assuming no short call rolls and a finish above the 35 strike.
** -- Assuming no short call rolls and a finish below the 32 strike.