Strangle on TLT
Updated
Sold the 118/124 Strangle with 52 days to expiration on TLT for 1.95 credit.
Always like to have trades on TLT so even thou the IV rank is low I like to add trades keeping the qty small and will look to diversify with other trades in bonds later on next week.
I am basically betting that we are still in a correction and will stay between my 124 calls and 118 puts.
Our break even are:
116.05
125.95
With a Probability of profit of 62%. Target is to buy it back at 50% of credit received increasing our probabilities to 75%.
Always like to have trades on TLT so even thou the IV rank is low I like to add trades keeping the qty small and will look to diversify with other trades in bonds later on next week.
I am basically betting that we are still in a correction and will stay between my 124 calls and 118 puts.
Our break even are:
116.05
125.95
With a Probability of profit of 62%. Target is to buy it back at 50% of credit received increasing our probabilities to 75%.
Trade active
With a strong move to the upside, we are being tested on our 124 calls. We are winning on our puts, so to improve our break even to the upside I rolled the Put up and received an additional $78 per contract to reduce our basis. Our new break even to the upside is at 126.65. Now we have the 124 Calls and 122 Puts.Trade: (Rolling the untested side)
Sold the 122/118 Put Credit spread for .78
Trade active
With the volatility crush, we are in good profit. Will probably reach our target by the end of this week.Trade closed: target reached
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