... 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.Note
Rolling the in-profit 210 short call down and out to the May 16th 200 for a 12.05 credit. 191.66 break even.Note
It's a roll down and out market ... . Rolling the May 16th 200 down to the June 20th 195 for a 7.04 credit. 184.62 break even.Note
Down and out at near 50% max ... . To the August 15th 185 for an 11.35 credit. 173.27 break even.Note
Reducing long delta in advance of "Liberation Day." Rolled the August 15th 185 down to the 175 for a 4.00 credit; 169.27 break even.Trade closed manually
Throwing in the towel ... . Closed for 133.38. 35.89 loss.
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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.