Do you ... fade this move? Pictured here is a long call diagonal with the long leg out in June at the +90 delta, and the short leg out in April at the -30 to synthetically emulate the net delta of a covered call position (i.e., long stock/short call) where the short call of the covered call setup would be at the -40 delta strike. Metrics: Assumption: Neutral*...
... for a 23.23 debit. Comments: (Late Post). Did this fairly obvious bullish assumption play in AAPL on Friday weakness, buying the back expiry 90, and selling the front expiry at-the-money. 2.77 ($277) max profit; 11.9% ROC at max; 6.0% at 50% max. Cost basis of 23.23 with a 133.23 break even on a 26 wide. Max is realized on a finish above 136, with the...
... for a 4.76 credit. Comments: The most I could make on this was 5.00 (the width of the diagonal), so closed it out here with 39 days to go, rather than roll out the short call to April or hang out for the remaining extrinsic to bleed out. My cost basis in the entire setup was a 4.22 debit. (See Post Below). Closing it out here for a 4.76 credit results in...
... for 7.45/contract. Comments: With the short leg having expired worthless, went ahead and closed out the long leg of this diagonal here rather than covering it again. My cost basis was 6.37/contract as of the last short leg roll. (See Post Below). Closing out the long leg here results in a 1.08 ($108)/contract winner (which seemed to have taken forever).
... for a .38 credit. Comments: Rolled the short call aspect of my long call diagonal, the back month of which is in June at the 25 strike. There wasn't much extrinsic left in it, so I first looked at rolling down to the 30 intraexpiry, but that wasn't paying squat, so rolled it down and out to a strike slightly above my cost basis/break even, which is now 4.54...
... for a .25 credit. Comments: The short call aspect of a long call diagonal, the back month long of which is at June 25 strike. Rolling at >50% max, reducing my cost basis further in the setup, which is now at 5.45 with a 31.45 break even.
... for a .22/contract credit. Comments: Rolling the short call leg of my EWZ long call diagonal on approaching worthless (it's gone nearly no bid), the long leg of which is at the 25 strike out in June. (See Post Below).* My cost basis in the setup is now 6.37 with a 31.37 break even with a profit potential of the width of the diagonal (8.00) minus my cost...
... for a .25 credit. Comments: With only 14 days to go in the short call aspect of my long call diagonal/Poor Man's Covered Call, rolling it out on this little bounce here to reduce cost basis in the setup further. My cost basis in the diagonal is now 5.72 with the resulting diagonal spread being the June 25 long call/January 21st 32 short call.
... for a .20 credit. Comments: Rolling the short call aspect of my long call diagonal in EWZ here. I originally paid 6.79 (See Post Below), so this reduces my cost basis to 6.59 and my break even to 31.59. Will look to now take profit at the width of the diagonal (8.00) - the credit received for the roll (.20) or 7.80.
... for a .29 credit. Comments: Rolled the short call aspect of my long call diagonal (See Post Below). Cost basis is now 6.26 - .29 = 5.97 with a break even of 30.97.
.. for a 6.26 debit. Comments: Here, doing a similar trade to the one I did in my IRA (but with far fewer contracts) (See Post Below), buying the long-dated 88 delta call in the June expiry and selling the at-the-money call in November to create what amounts to a synthetic covered call. I paid 6.26 for a 7-wide, so my max profit potential is the width of the...
... for a 7.63 credit/contract. Comments: With max profit in the diagonal around the width of the spread (8.00), closing it here rather than waiting another 21 days for the remaining extrinsic to bleed out and/or risking that price returns to below 24. My cost basis was 6.49/contract (See Post Below). Closing it here results in a realized gain of 1.14...
... for a .36/contract credit. Comments: This is the short leg of a long call diagonal, the long leg of which is out in March of '22. (See Post Below). There isn't a ton of extrinsic left in the September 17th 24, so rolling it here. Cost basis in the setup is now 6.85/contract - .36 = 6.49 with a break even at 22.49. I'm hanging out for a decisive break of...
... long call diagonal. Comments: Here, I'm preliminarily pricing out a bullish assumption GLD setup, buying the back month 90 delta and selling the front month at-the-money call. I'd prefer to deploy this at that obvious support level at 160, which has resulted in some buying interest previously. If that occurs, I'd have to tweak the strikes slightly, selling...
* -- long call diagonal ... for a 6.85/contract debit. Comments: I wasn't entirely satisfied with what I would be getting paid for my go-to strategy of selling short puts in this, so doing something a little more directional here. Buying the back month 89 delta, selling the front month 37 here and paying 6.85 for an 8-wide with a max profit metric of 1.15...
... long call diagonal for a 15.43/contract credit. Comments: Money, taking, running on this (which was pretty much my original intention if I got the move). My cost basis was 13.88, (See Post Below), so my profit is the difference between what I closed it for (15.43) minus my cost basis (13.88) or 1.55 ($155)/contract. 1.55/13.88 = 11.2% ROC. Naturally,...
... for a .36/contract credit. Comments: Here, just rolling the short option leg of my GLD diagonal (See Post Below) while price is right at the short call strike to bring in a little bit more credit, reduce cost basis further, and improve my break even a smidge. I originally filled this for 14.24 (See Post Below), so my cost basis is now 14.24 - .36 or 13.88...
... for an 8.50/contract debit. Notes: I'm not all that confident that this stays above 25, so taking profit here. My cost basis was 7.76/contract (See Post Below), so .74 ($74) profit per contract here on a 9 wide (8.22% ROC).