OPENING: TLRY SEPTEMBER/JUNE 5.5/7.5 CALL DIAGONAL
Updated
... for a 1.33/contract debit.
Metrics:
Max Profit: 67/contract
Max Loss: 133/contract
Break Even: 6.83 vs. 7.78 spot
Debit Paid to Spread Width Ratio: 66.5%
Notes: With front month IV at 179%, running a small, bullish assumption engagement trade with this monied call diagonal right before earnings. Back month at the 90 delta, front month monied at the 61 with more than the usual amount of room to be wrong on the downside.
Metrics:
Max Profit: 67/contract
Max Loss: 133/contract
Break Even: 6.83 vs. 7.78 spot
Debit Paid to Spread Width Ratio: 66.5%
Notes: With front month IV at 179%, running a small, bullish assumption engagement trade with this monied call diagonal right before earnings. Back month at the 90 delta, front month monied at the 61 with more than the usual amount of room to be wrong on the downside.
Trade closed: target reached
In for 1.33/contract; out for 1.95. It's .05 short of theoretical max, but getting the additional .05 out of it would generally require waiting toward expiry. In any event, .62 ($62)/contract winner; 46.6% ROC for 14 days of work, which I'll take any day.
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