Some residual IV here from recent earnings of holdings in the ETF.
-1 Sep21 35/37 strangle for $1.72 cr.
Risk: 2x cr received or continue to roll put
Profit: 50% cr rec or if IV drops with too much time left to hold risk.
XME should see pretty strong upward bias in the next 40-60 days and should make it to the 40-45 region. I will be taking position on any pullback which may materialize in the next few days.
As additional proof
1. We bottomed at a good fib support, and then made a nice bottoming formation of bottoming exactly at the next support level (as in "Automatic supports" ...
quietly the XME has broken out of a 2017 lull, and with that we go long..
a few ideas how to play this
1. Poor Mans Covered Call
2. Sell puts..
Both situations seem decent, but if you look at the possibility of being wrong, the PMCC offers the least amount of pain and suffering. Lets explore
if selling puts, using Delta30... we will be getting $53 and using ...