Ticker: TLT
Position:
- Sell to Open (STO) $155 Strike Call Option (6th March Expiry)
- Buy to Open (BTO) $156 Strike Call Option (6th March Expiry)
- This will result in a net credit to your account, i.e. you will be paid for this trade
- Remember to (STO) the HIGHER delta option, otherwise this will result in a debit and the trade will then be structured...
... for a 3.08/contact credit.
Metrics:
Max Profit: $308/contract
Max Loss/Buying Power Effect: Undefined; ~$180/contract (on margin)
Break Evens: 5.92/12.08
Delta: 19.79
Theta: .99
Notes: A small bullish assumption play in a small underlying with high 30-day implied at 77.4%. Going out farther than usual in time because it won't tie up much buying power in...