TSLA strangle 195c / 85pTrade thesis
- theta collection
- current IV rank and percentile are at historical highs aggregating past 252 trading days
IV rank: 95%
IV %: 99%
- near delta neutral options strangle position of 195c/85p on Feb 17 monthly expiry
- 85p short leg represent a -32% price buffer to the downside
- 195c forms a nearly delta neutral trade on call side (+.02 delta)
- 56 DTE / ideal duration to sell premium
Position
- entry: $123.95
- strategy: strangle
- structure:
short 02/17 195c (.10 delta)
short 02/17 75p (.12 delta)
- cost: $500 credit
- delta: 2.96
- theta: 13.867
- gamma: -0.86
- vega: -18.13
Targets
- Profit target: $250 total profit (50% of credit collected)
- SL target: -50% loss
- management strategy:
roll unchallenged side to higher delta to maintain at least .10 delta on each side
roll unchallenged side to higher delta (5 strikes) to collect additional credit (10% minimum of roll width)
exit position before earnings on 01/25/23
