... for a 1.02 credit. Metrics: Max Profit: $102/contract Max Loss: $898/contract (assuming stock goes to zero) Break Even/Cost Basis: 8.98/share ROC% at Max as a Function of Notional: 11.4% Notes: High implied at 171%. Looking to wheel this if it doesn't stay above 10 (i.e., acquire shares, cover).
... for a total of 1.73 credit, with the 24 paying .80 and the 23, .93. Notes: One of the dividend yielders on my shopping list (yield currently at 3.58%). I've been going three rung with these, but there is currently no October to take advantage of.
... 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...
... for a 1.56/contract credit. Notes: Camped out at the 20 delta with break evens at 30.44/44.56. Look to manage at side approaching worthless or break even test ... .
... for a 1.78 credit. Notes: A naked variation on my trading idea post. (See Below). Looks like that would still be a good setup: paying 1.46 at the mid with a max loss of 1.54, so basically a risk one to make one ... .
EARNINGS: Bunch of options liquid underlyings announcing earnings this week: IBM (27/36/<10%), Monday, After Market Close SNAP (43/79/18.1%): Tuesday, After Market Close MSFT (29/38/<10%): Wednesday, After Market Close TWTR (44/69/15.8%): Thursday, Before Market Open INTC (24/39/<10%): Thursday, After Market Close AMZN (70/55/12.5%) (Thursday, After Market...
Back into PBR again after taking off my previous long call diagonal at near max yesterday. Metrics: Max Loss on Setup: $217/contract Max Profit on Setup: $83/contract Break Even: 8.17 versus 8.72 spot Debit Paid to Spread Width Ratio: 72.3% Notes: Still think this has some room to run here. Went out a little farther in time with the front month to bring in...
... for a 2.68 credit. Notes: Earnings in 1; high rank/implied at 55/128. Went with a skinny short strangle over a short straddle, since price is blooping around 10.50, which is in between strikes. Will still look to manage at 25% max, since it's very nearly a short straddle.
... for a 1.51 credit (.38 at 25% max). Notes: 5 out of XLF's top 10 holdings announce next week, so this is a way to get a piece of that volatility without getting into single name, with a classic risk one to make one iron fly setup. I've split the shorties across current price, but would look to take profit at 25% max, as you would with a short straddle/iron...
EARNINGS: A bunch of earnings next week, particularly in the financials sector: C (40/58/14.1%): Tuesday before market open. DAL (50/95/23.0%): Tuesday before market open. JPM (38/49/12.1%): Tuesday before market open. WFC (58/63/15.4%): Tuesday before market open. GS (31/48/11.7%): Wednesday before market open. EBAY (71/56/13.4%): Wednesday before market...
... for a .90 credit. Metrics: Max Profit: $90 Max Loss: $1410 (assuming stock goes to zero) Break Even/Cost Basis in Shares: 14.10/share ROC% at Max as a Function of Notional Risk: 6.4% Notes: 30-day implied still high here, so doing something a little more risk adverse with a far out-of-the-money short put that still pays >5% ROC at max as a function of...
... for a 4.22 credit. Notes: With rank/implied still at 50/43 (the highest broad market exchange-traded fund on the board), re-upping an IWM directionally neutral short strangle out in the August cycle (59 days). Looking to take profit at 50% max or otherwise manage on side approaching worthless.
... for a 1.92 credit. Notes: Rank/implied at 52/39 with the at-the-money short straddle paying 11.5% of share price. Will look to manage at 25% max or on side approaching worthless.
EARNINGS: Next week's earnings announcements are light, with options liquid underlying to play for volatility contract even lighter. BBBY (52/119/18.8%*) announces on Wednesday after market close, so look to put on a play before the end of Wednesday's session. Pictured here is a July 17th (12 days) 11 short straddle, paying 2.03 as of Friday close, 18.8% of...
I have on occasion highlighted the benefits of using various options strategies instead of getting into stock, not the least amongst them being buying power effect. Pictured here is a 98.35 delta long call in SPY in the December 16th '22 (896 Days Until Expiration) cycle costing 183.35 ($18,335) to put on versus 312.23 spot (i.e., it would cost $31,233 to get...
... for a 3.41 credit. Notes: Plain Jane directionally neutral in the July cycle.
... for a 3.00/contract debit. Metrics: Max Loss on Setup: $300/contract Max Profit on Setup: $100/contract (33.3% ROC) Break Even: 7.00 Debit Paid to Spread Width Ratio: 75% Notes: High background implied at 118% with plenty of opportunity to reduce cost basis via roll if it discontinues its grind up.
Back to the "Weed Well" immediately post earnings with 30-day still ginormous at 198% while I wait for June opex ... . Metrics: Max Loss: 2.89/contract Max Profit: 1.11/contract Debit Paid to Spread With Ratio: 72.2% Break Even: 8.89 versus 10.01 spot Notes: Extrinsic collected with the short call far exceeds that in the long, so I make money if it just sits...