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Strangle

CSCO covered strangleSold the OCT 20 30/32, ~ 30 deltas, 58 days, @ 40% IV Rank now, (I missed my chance selling when the IV was higher before earnings ) I'm sitting on 3 lots of stock here with 31.64 cost basis. I could have just sold the 32 call against my stock position, but it seems to make more sense to sell the strangle as it brings in more premium and both the call & put won't be assigned. I'm open to acquiring more CSCO stock at 30. A number of fundamental bullish factors should provide support the stock price: - Free cash flow yield of 4.6% - Dividend yield of 3.75%, payout ratio 56% - Both CFRA and Trefis give a higher 'fair value' around $33, Credit Suisse "outperform" rating - Valued based on 2.43 operating earnings and 5% earnings growth rate over next 3 years.
NASDAQ:CSCO
by dime
XRT 37/42 Strangle updateOn August 10, I sold the 37/42 Sep 15 strangle in XRT, about 19 delta strikes for 0.65. 80% IV Rank and 26.6% IV. The following week I closed the 42 call at 5c for no fee. The 37 put remains, and the share price looks like a good spot for it to bounce upward from here. Today the XRT is up the greatest % of the sector SPDR ETFs as investors do some bargain hunting following the past few days of weakness in the major indexes. Ideally I could let the put expire worthless...
AMEX:XRT
by dime
58% probability trade on KRE (Strangle)Neutral trade on KRE to try and take advantage of what I think it would be two sided action between buyers and sellers. With a Implied Volatility Rank of 33, is still decent to sell a Strangle (53/57). We make money as long as the price stays between 58.77 and 51.23 in the next 49 days, so we have a buffer of around 7% up or down. This gives us a probability of profit of 58% at expiration, and 77% if we manage early (which is always the plan). The trade: Sell AUG18 53 PUT Sell AUG18 57 CALL Sold it for $1.75 per contract
AMEX:KRE
by AlexanderGotay
1
Strangle on TLTSold 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%.
NASDAQ:TLT
by AlexanderGotay
Covered Strangle on Natural Gas FuturesAfter 14 days of mostly bullish candles, we get the first sign that the bears wants some action and/or some bulls taking profits, breaking the 20 EMA and the hourly trendline. Looking to profit from the next move down, I will be shorting the Natural Gas Futures and Sell a Strangle ( 3.2 Call and 2.85 Put) to reduce my cost basis and improve my probabilities of profit to 64%. I can improve it even more by closing it early when we make a profit of $1,260 for one contract.
NYMEX:NG1!Short
by AlexanderGotay
2