AMEX:XOP   SPDR S&P OIL & GAS EXPLORATION & PRODUCTION ETF
Okay, okay, okay, so I stole this idea from Dough ... . I'm not quite using their exact setup (a Dec             18th 31/42 short strangle), as I'm going with a slightly shorter duration.

In this particular case, XOP             is a sector ETF , so the traditional rule of thumb is to look to sell premium when the IVR             is 35 or greater (as compared to individual underlyings, where the rule of thumb is look to sell premium when IVR             is 70 or greater). XOP             has been hovering around 50 for some time now, and it's IV is about 47, so it's not a horrible play for an ETF , but naturally higher IVR             is better.

That being said, I could also use some longer term plays on than earnings plays, and my traditional bread and butter TLT             and index ETF trades just haven't had enough volatility in them to bother with (although TLT             is getting close).

Here's the setup I'm going to try and get a fill on:

Dec             11 31/42 short strangle for a .94 credit.
POP%: 73%
Max Profit: $94/contract
Max Loss/BPE: Undefined
BE's: 30.06/42.94

I'll look to take it off at 50% max profit.
NaughtyPines
a year ago
Filled for a .94 credit. I'll look to take this off at 50% max profit.
Reply
NaughtyPines
a year ago
Covered today for that 50% max ... .
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out