The setup consists of a long combo (a Jan '20 10 short put + a Jan '20 10 long call) and a November 16th 10 short call. The combo aspect of the setup acts as synthetic stock, with a static 100 delta metric, and the short call works as it would in an ordinary covered call.
Max Profit: $93/contract
Max Loss/Buying Power Effect: $907/contract/$335/contract
Break Even: 9.07/share
Theta: .76
Delta: 50.1
Here, I'm just looking for a modest bounce through the 10 strike post-earnings. If it doesn't occur fairly quickly, I think I've given myself plenty of time to reduce cost basis ... .
Max Profit: $93/contract
Max Loss/Buying Power Effect: $907/contract/$335/contract
Break Even: 9.07/share
Theta: .76
Delta: 50.1
Here, I'm just looking for a modest bounce through the 10 strike post-earnings. If it doesn't occur fairly quickly, I think I've given myself plenty of time to reduce cost basis ... .
Bình luận:
Mmm. Long-dated options in this are somewhat illiquid, so I didn't get filled at open. I may have to putz or go with another bullish assumption setup (short puts, upward call diagonal ... ).