OPENING: XOP NOV/JAN 42/48 DOWNWARD PUT DIAGONAL
... for a 4.19/contract debit.
Metrics:
Max Profit: 1.81/contract
Max Loss/Buying Power Effect: 4.19/contract
Debit Paid to Spread Width Ratio: 4.19/6.00 = 69.83%
Break Even: 43.81
Theta: .72
Delta: -42.45
Notes: Going split month downward put diagonal/synthetic covered put here at or near 2018 highs.
Metrics:
Max Profit: 1.81/contract
Max Loss/Buying Power Effect: 4.19/contract
Debit Paid to Spread Width Ratio: 4.19/6.00 = 69.83%
Break Even: 43.81
Theta: .72
Delta: -42.45
Notes: Going split month downward put diagonal/synthetic covered put here at or near 2018 highs.
Trade active:
Rolling the Nov short put out to Dec "as is" (42 strike) for a .51/contract credit; scratch at 3.60.
Trade active:
Taking some profit on the back month in this down move and extending duration by rolling from the Jan 48 to the Feb 47 for a .50/contract credit; scratch at 3.10/contract.
Trade closed manually:
Closing here for a 4.27/contract debit, a 1.09 ($109), per contract profit (60% of max; 26% ROC). (My math on my scratch point was slightly off: it should have been 4.19 - .51 -.50 = 3.18).