... for a .58/contract credit.
Max Profit on Setup: $158/contract (the width of the spread plus the credit received)
Max Loss on Setup: $958 (assuming you do nothing and the underlying goes to zero)
Break Even: 9.42
Delta: 47.77
Theta: .62
Notes: A small buying power effect, cost basis reduction setup in a high implied volatility petro underlying battered by...
Another covered short "combo" setup (see Post Below) with the delta metrics of a covered put sans the buying power effect of short stock and plenty of time to work out and/or reduce cost basis ... .
Metrics:
Max Loss/Buying Power Effect: Undefined/~$1234
Max Profit: $514/contract (realized on finish below the short put)
Break Evens: 46.14/no downside risk
Delta:...
A "combo" is a two-legged option setup with a "long combo" consisting of a short put and long call sold at the same strike and in the same expiry, and a "short combo" consisting of the inverse -- a short call and a long put sold at the same strike. The short combo emulates a short stock position with static* -100 delta; a long, a long stock position with +100...
