Opening (IRA): XBI July 19th 83 Monied Covered Call
... for an 80.91 debit.
Comments: After taking off my August 88 monied for a small profit, re-upping in shorter duration, but with a better break even than what I had with the August 88. Selling the -75 delta call against a one lot of stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense.
My general goal here is to not hang out in these positions for lengthy periods of time, but to take profit, re-evaluate the market for where the juice is at, and re-up if the underlying remains "sexy" from a premium-selling standpoint. XBI's 30-day IV isn't stellar at 30.9%, but it's toward the top of my IV screener, with miners and the silver ETF hogging three spots: TQQQ (51.8%); GDXJ (44.0%); GDX (38.7%); SLV (32.3%); SMH (31.6%); EWZ (31.1%); XBI (30.9%).
Metrics:
Buying Power Effect/Break Even: 80.91
Max Profit: 2.09
ROC at Max: 2.58%
ROC at 50% Max: 1.29%
Will generally look to take profit at 50% max and/or roll out the short call aspect if it reaches 50% max or there is a test of my downside break even.
Comments: After taking off my August 88 monied for a small profit, re-upping in shorter duration, but with a better break even than what I had with the August 88. Selling the -75 delta call against a one lot of stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense.
My general goal here is to not hang out in these positions for lengthy periods of time, but to take profit, re-evaluate the market for where the juice is at, and re-up if the underlying remains "sexy" from a premium-selling standpoint. XBI's 30-day IV isn't stellar at 30.9%, but it's toward the top of my IV screener, with miners and the silver ETF hogging three spots: TQQQ (51.8%); GDXJ (44.0%); GDX (38.7%); SLV (32.3%); SMH (31.6%); EWZ (31.1%); XBI (30.9%).
Metrics:
Buying Power Effect/Break Even: 80.91
Max Profit: 2.09
ROC at Max: 2.58%
ROC at 50% Max: 1.29%
Will generally look to take profit at 50% max and/or roll out the short call aspect if it reaches 50% max or there is a test of my downside break even.