Comments: This started out as an October 20th 76 short put (See Post Below) and then proceeded to crater quite massively, resulting in early, random assignment of shares. In an attempt to get my cost basis immediately within earshot of where the underlying is currently trading, I went extremely long-dated and sold the Jan '25 77 for 7.05 against my one lot,...
Biotech companies contribute significantly to the development of the health sector. But investing in biotech companies has its fair share of risk. They can be profitable when milstones are achieved but catastrophic when something goes wrong.
Through an ETF, an investor has a safer entry into the biotech space where risk and reward is shared across a long list of...
XBI is testing +2 sig from the last range selloff. There was fair respect for the Average on black line but the high value seller did not return at +1 sig.
So now at +2 sig I don't think it's likely the seller returns aggressively enough for a push down.
The much longer timeframe seller got filled in July at +1 at the Red line and has continued to sell. If the...
... for a .65 credit.
Comments: Originally opened this for .77 (See Post Below); rolling down and out for a .65 credit. Total credits collected of 1.42.
I may still get assigned, but at a slightly better price than were I to just have left it alone.
... for a .70 credit.
Comments: Targeting the <16 delta strike paying around 1% of the strike price in credit. Basically, just building a position here on this weakness.
TRADE THIS
XBI long when the DPO is above the 0 line. XBI short when crossing below the 0 line. Using it to compare to TLT provides a sentiment overlay: Higher TLT is risk-with lower implied interest rates; Lower TLT is risk-off with higher implied-interest rates. XBI is the most interest rate sensitive as the index contains the least amount of dividend paying...
AMEX:XBI Biotech has been beaten up for the past 2 years. If you zoom out it looks like it is forming a gigantic head and shoulder pattern.
It has bounced every time it is around $63 - $60 area which is the neckline region.
I think the risk reward at this point is attractive. If it breaks below $60 though, things can get ugly.
Upside...
... for a .61 credit.
Comments: Adding a rung to beaten-down biotech at strikes better than what I currently have on in October at the 76, November at the 71, and December at the 63, targeting the <16 delta strike paying around 1% of the strike price in credit.
I'll be assigned shares on the 76 here shortly (and possibly the 71), after which I'll proceed to...
Comments: Adding a couple rungs to my XBI position at strikes better than what I currently have on, targeting the <16 delta strike paying around 1% of the strike price in credit.
December 15th 47: .62 credit
February 16th 50: .57 credit
I would've also gone with January, but already have a rung on at where I'd want to pitch my tent.
Comments: Looking to sell the around the 30 delta here in the October monthly, which is more aggressive than I usually go, but am fine with taking assignment, selling call against if it comes to that.
Currently, the strike is bid 1.45/ask 1.65 with a 1.55 mid, so will look to get a fill "in that neighborhood."
Just looking for some "engagement" in this broad...
Here we are looking at AMEX:XBI I am looking at an hourly chart with a renko chart on the ATR setting just to keep it simple. A huge wedge has been developing on XBI for awhile now and we have made a breakdown on the bottom trendline. We are currently at a line in the sand on XBI and either the bulls can hold it up or we really breakdown on this final support...
... for a .77 credit.
Comments: Targeting the shortest duration <16 delta short puts paying around 1% of the strike price in credit to emulate dollar cost averaging into the biotech exchange-traded fund.
AMEX:XBI bounced from lower trend line. MCAD, RSI and William R% all curling up. It could head to $87.
Targets:
- $82
- $87
Key resistance area: $82.
Key support area: $76.
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... for an .82/contract credit.
Comments: Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the biotech sector.
I'm fine with getting assigned, selling call against, but mainly just selling premium in some relatively high IV sector exchange-traded funds (XBI's at 30.9%) while I wait for some of...
The XBI Exchange Traded Fund (ETF) is provided by SPDR. It is built to track an index: S&P Biotechnology Select Industry Index. The XBI ETF provides physical exposure, so by buying it you actually own parts of all the 140 underlying holdings.
