72% Probability trade on XLU (Big Lizard)
The Utilities sector have been underperforming. With IV Rank of 67.5 and down around 10% since December we are getting at least some premium to sell. I don't want to risk a move upward, so I Sold a Big Lizard (Straddle at 51 and bought the 52 call) to eliminate the risk to the upside. This is a high probability trade above 70% and we make money as long as it stays above $49.82.
The Trade:
38 days to expiration on Feb 16
Sell 51 Put
Sell 51 Call
Buy 52 Call
Credit $1.18
Probability of profit 72%
The Trade:
38 days to expiration on Feb 16
Sell 51 Put
Sell 51 Call
Buy 52 Call
Credit $1.18
Probability of profit 72%
Trade closed: stop reached
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Related publications
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.