While I wait for my "gaggle" of long VIX/VIX derivative setups to play out, I'm going to play a few of these smaller earnings announcements, so that I can keep powder dry for the juicier underlyings (should their implied volatility ever ramp up to my standards).
Metrics:
Probability of Profit: 77%
Max Profit: $79/contract
Buying Power Effect/Underfined: ~$187/contract; Undefined Risk
Look to take it off for 50% max profit ... .
Metrics:
Probability of Profit: 77%
Max Profit: $79/contract
Buying Power Effect/Underfined: ~$187/contract; Undefined Risk
Look to take it off for 50% max profit ... .
Bình luận:
Post announcement: price tanked, but is holding in there above my short put strike.
Giao dịch được đóng thủ công:
Out of the call side for $3 (near worthless). The call was sold for $47/contract, so that locks in a $44/contract profit. Currently, price is wandering around slightly below the 15 put, but there is still some time for it to work out, so I'll leave it alone here.
Bình luận:
With price meandering south of my short put, I'm probably going to roll this out another week "as is" to give it additional time to work out and sell a short call in the same expiry against.
Bình luận:
Rolled the 15 short put out to May 27th for a $31 credit and matched it up with a 15.5 short call in the same expiry for a $29 credit. I received $79 in credit for the original setup, closed out the short call for a $3 debit, and received $31 for the roll and $29 for the 15.5 short call, so I've received a net of $136 in credit/contract. Ordinarily, I look to take these "broken plays" off for scratch, but I'm going to take off the current setup for what I was originally shooting for -- 50% max profit of the $79 in credit I received for the original setup or about $40/contract in profit. Consequently, I'll put in a GTC order to cover the current strangle for a $95 debit ($136-$95=$41).
Giao dịch được đóng thủ công:
Closed for a $97 debit, which is "close enough" for this broken setup. Net profit was $136 - $97 = $39/contract.