... for a 19.70 debit.
Comments: Low IVR/IV + strength. Buying the back month 40 delta and selling the front month same strike.
Will look to take profit at about 10% of what I put it on for.
... for a 33.95 debit.
Comments: With IV at new 52 week lows, a bet that we get a volatility expansion at some point ... . Selling the front month 40 delta strike, buying the back expiry same strike.
Will look to money, take, run at 10% of what I put the trade on for.
... for a 24.20 debit.
Comments: With SPX IVR at nearly the bottom of its 52-week range, selling the front month 40 delta and buying the back month same strike, looking for an IV expansion over the life of the setup.
Will look to take profit for about 110% of what I put it on for (i.e., a 26.62 credit).
... for a 28.95 debit.
Comments: Selling the front expiry 40 delta, buying the back month same strike here, looking for an expansion in IV at some point. Will look to take profit at 110% of what I put it on for or otherwise roll out the short put on approaching worthless to reduce cost basis in the setup.
With IVR at a 52 week low, selling the front month 40 delta, buying the back month same strike here for a 21.00 debit to take advantage of any volatility expansion we may get, particularly running into FOMC.
Filled for a 21.00 debit.* Will look to take money, take, run at about 10% of what I put it on for or around 23.10 or so and/or look to reduce cost basis in...
... for a 1.08/contract debit.
Adding a rung (lower rung at April/June 120; see Post Below) in low implied volatility (9.04%).
I'm not looking to squeeze much out of these (25% max), but they're good, low cost plays with decent return on capital for what you're putting up.
... for a 1.56/contract debit.
Notes: TLT is in a really low implied volatility state (30-day at 9.5%) and at or near horizontal resistance in the 122-123 area. With a June hike being talked about in terms of timing of the next hike, I figured I'd put on a calendar to potentially benefit from that scenario, which would lead to a downturn in the underlying along...
Decided to do something slightly different in Micron than an upward call diagonal (See Post Below) ... . Here's what's important about this trade:
Max Loss on Setup: $151/contract
Max Profit on Setup: Indeterminable
Front Month Value on Setup: $253 credit
Back Month Value on Setup: $404 debit
Theta: .99
Delta: 2.92
In a nutshell, it's a fairly delta neutral,...
... for a 3.14/contract debit. When in low implied volatility, (VIX at sub-11), go with the low volatility strategy (debits, calendars, diagonals ... ).
As usual, not many metrics to look at:
Theta: .82
Delta: -6.44
Notes: Shooting for 20% max.
