Coinbase GlobalLong
Opening (IRA): COIN March 21st 220 Covered Call
... for a 215.96 debit.
Comments: High IV + weakness. Selling the -85 delta call against shares to emulate the delta metrics of a 16 delta short put, but with the built-in defense of the short call. Going lower net delta due to the shorter duration (35 DTE).
Metrics:
Buying Power Effect/Break Even: 215.96/share
Max Profit: 4.04
ROC at Max: 1.87%
50% Max: 2.02
ROC at 50% Max: .94
Will generally look to take profit at 50% max, roll out short call if my take profit is not hit.
Comments: High IV + weakness. Selling the -85 delta call against shares to emulate the delta metrics of a 16 delta short put, but with the built-in defense of the short call. Going lower net delta due to the shorter duration (35 DTE).
Metrics:
Buying Power Effect/Break Even: 215.96/share
Max Profit: 4.04
ROC at Max: 1.87%
50% Max: 2.02
ROC at 50% Max: .94
Will generally look to take profit at 50% max, roll out short call if my take profit is not hit.
Note
Rolling the in-profit 220 short call out to the April 17th 210 in this vol expansion for a 12.25 credit (i.e., a credit that exceeds the amount of strike destruction). 203.71 break even with a 6.29 max.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.