Metrics:
Max Profit: $223/contract ($56 at 25% max)
Max Theoretical Loss/Buying Power Effect: $1277 (stock goes to 0); $1277 cash secured; ~$300 on margin.
Break Even: 12.77/share (7.6% discount over current price if assigned on the 15 short put); no upside risk
Delta: 43.26 (bullish assumption)
Theta: 1.09
Notes: I wasn't happy with what my screener was showing...
The Utilities sector have been underperforming. With IV Rank of 67.5 and down around 10% since December we are getting at least some premium to sell. I don't want to risk a move upward, so I Sold a Big Lizard (Straddle at 51 and bought the 52 call) to eliminate the risk to the upside. This is a high probability trade above 70% and we make money as long as it...
With an Implied volatility rank at 49 I did a Straddle with no upside risk (Big Lizard) on XLK for $2.12 per contract. Our break even is at $51.88 price and with 50 days to expiration that gives us a 78% probability of profit.
The trade:
Sell 18 AUG 54 Call
Sell 18 AUG 54 PUT
Buy 18 AUG 56 Call
Closed a trade last week and had no position in XOP. Today we had a -2% move down and around 9% in the last month IV rank is not great, but right now not many ETF's have over 20 Implided volatility rank.
So I decided to sell a straddle with no upside risk (Big Lizard).
The trade:
Sold the 33 Call
Sold the 33 Put
Bought the 35 Call
Total credit $2.16
After a couple of down days in oil OIH have been affected. Now with an Implied Volatility rank of 27 it gives us a chance to sell some premium.
A big lizard (Straddle with no upside risk) is a nice probability trade to do in case it decides to bounce back up.
Trade price $1.24 per contract
The trade:
Sellthe Jul21 24.5 Call
Sell the Jul21 24.5 Put
Buy the...
