Metrics:
Max Loss On Setup: $443/contract
Max Profit On Setup: $307/contract; $153/contract at 50% max for 34.5% ROC
Break Even on Setup: 49.43 versus 50.18 spot
Debit Paid to Spread Width Ratio: 59.1%
Theta: 1.22
Delta: 31.54
Notes: With earnings on Thursday before market open and the underlying at the low end of its 52-week range, I'm looking at taking a...
METRICS:
Max Loss On Setup: $476/contract
Max Profit on Setup: $224/contract; $112 at 50% max with a Return on Capital of 23.5% at 50% max
Break Even Versus Spot: 35.76 versus 35.76
Debit Paid to Spread Width Ratio: 68%
Delta: 35.47
Theta: .51
Notes: A similar play to the BMY upward call diagonal (See Post Below), but without all the drama around earnings (which...
... for a 3.09/contract debit.
Metrics:
Max Loss/Buying Power Effect on Setup: $309
Max Profit on Setup: $141
Break Even on Setup: 21.09 vs. 20.71 spot
Debit Paid to Spread Width Ratio: 68.7
Delta: 37.91
Theta: .61
Notes: The front month short doesn't pay for all of the extrinsic in the back month long (which is generally why you want your break even to be at...
METRICS:
Max Loss/Buying Power Effect on Setup: $112
Max Profit on Setup: $88
Break Even Versus Spot: 6.12 versus 6.50
Debit Paid to Spread Width Ratio: 56%
Notes: I'm fairly dubious that I'll get filled at the mid price on this, since that debit paid/spread width ratio is unusual to say the least. Moreover, the setup is bid 1.00/mid 1.12/ask 1.25, and I'm...
Metrics:
Max Loss/Buying Power Effect on Setup: $338/contract
Max Profit on Setup: $162/contract
Break Even: $28.38 versus $28.63 spot
Debit Paid to Spread Width Ratio: 67.6%
Delta: 39.2
Theta: .61
Notes: A bullish assumption shot at the low end of the range. Ordinarily, I like to go split month with these to give me more time to reduce cost basis, but there...
... for a 3.86/contract debit.
Metrics:
Max Profit on Setup: $114/contract
Max Loss on Setup: $386/contract
Break Even: 26.86 vs. 26.75 spot
Debit Paid to Spread With Ratio: 77.2%
Delta: 30.39
Theta: 1.14
Notes: Somewhat dissatisfied with my OIH position (hey, I entered too early; it happens), adding some long petro with this, my preferred go-to. Will look for...
METRICS:
Max Loss on Setup: $422
Max Profit on Setup: $178
Break Even Versus Spot: 35.22 versus 35.37
Debit Paid to Spread Width Ratio: 70.3%
Delta: 50.2
Theta: .6
Notes: Tomorrow's the last day on which 2018 tax losses can be realized, so I can foresee some additional, last minute dumpage, followed by the Big Dicks buying the dip on Wednesday to position long...
Metrics:
Max Profit on Setup: $108
Max Loss/Buying Power Effect on Setup: $292
Break Even vs. Spot: 17.92 vs. 18.25
Debit Paid to Spread Width Ratio: 73%
Delta: 30.35
Theta: .82
Notes: With high implied volatility rank/30-day implied (82/67) and fairly long-term weakness, putting on some bullish assumption here without hanging a ton of buying power out there if...
Metrics:
Max Loss/Buying Power Effect on Setup: 2.18/contract
Max Profit on Setup: .82/contract
Break Even: 23.18 vs. 22.81 spot
Debit Paid to Spread Width Ratio: 72.7%
Theta: .26
Delta: 37.46
Notes: Here, I'm just shopping around for particularly weak sectors in which to put on bullish assumption plays that will have plenty of time to work out and/or reduce...
... for a 2.62/contract credit.
Metrics:
Max Profit on Setup: $138/contract
Max Loss on Setup: $262/contract
Debit Paid to Spread Width Ratio: 65.5%
Break Even: 18.62 vs. 18.60 spot
Notes: Taking a bullish assumption directional shot in OIH with plenty of time to work out/reduce cost basis ... . Will look at taking profit at 50% max.
