... for a 1.06/contract credit.
Metrics:
Max Profit: $106/contract
Max Loss: Undefined
Break Even: No Put Side Risk/61.06
Delta/Theta: -14.82/2.72
Notes: High rank/implied at 41/59. I don't do these very often, but think downside risk is greater than upside, particularly due to call side skew (i.e., both shorts are set up at the 20 delta, but the put side is...
Metrics:
Max Profit: $124/contract
Max Loss/Buying Power Effect: $176/contract
Break Evens: $133.24 (No Downside Risk)
Delta/Theta: -10.46/.22
Notes: A Jade Lizard is ordinarily a short put plus a short call vertical where the total credits collected exceeds the risk attributable to the short call vertical, making it a no upside risk setup. A Reverse Jade...
I haven't traded this particular instrument before. For obvious reasons, now seems like a perfect time.
The first of the two trades is a short strangle, with the shorts set up at the ~30 delta strike:
JUNE 16TH 60/65 SHORT STRANGLE
POP%: 59%
Max Profit: $140/contract
Max Loss: Undefined
Break Evens: 58.60/65.82
Theta: 3.01
Delta: .78
The second's a defined...
