... for a 2.18/contract debit.
Metrics:
Max Profit: $82/contract
Max Loss: $218/contract
Break Even: 26.82
Notes: Adding some on this little VIX bump we have today. I don't think there's a new weekly opening up this week (monthly expiry), so adding a smidge here in the expiry nearest 45 DTE. As always, staying small, keeping powder dry to add on pops ... .
It's not often that I play leaps or think of myself as "playing leaps." In case you're wondering, a "leaps" is a "long term equity anticipation security" -- basically, a long-dated option. My most frequent use of them is in my individual retirement account where I'm working a covered call, want to hold onto the underlying for dividend generation, but also want...
... for a 2.20/contract debit.
Max Profit: $80/contract
Max Loss: $220/contract
Break Even: 26.30
Notes: This filled immediately at open, so I wasn't able to adjust the price (to be honest, wasn't expecting it to fill right off the bat). You may still be able to get a fill for slightly better than I did or shoot for the 26/29's for less than 2.25/contract ... .
... for a 2.20/contract debit at the close on this little bump up in price here.
Max Profit: $80/contract
Max Loss: $220/contract
Break Even: 26.80
Notes: Going out a little farther than I'd like, but it's a bit crowded in February with the setups I currently have on.
... for a 2.22/contract debit.
Metrics:
Probability of Profit: 64%
Max Profit: $78/contract
Max Loss: $222/contract
Break Even: 30.78
Notes: With UVXY sliding below 12, it's losing a bit of granularity here due to its size, so I'm switching over to VXX for a bit until UVXY reverse splits (which usually occurs around $8-$9) (i.e., it's a bigger move for UVXY to...
Since there's no February 2nd weekly available for me to use, I'm going out to the monthly to put on my weekly short volatility product play.
Here, I'm going narrower with the spread, but doubling the number of contracts to show how to scale trade size with both width of the spread and the number of contracts.
As compared to the 3-wides, which I normally get...
