OPENING: NKLA AUGUST 21ST 15 SHORT PUT
Updated
... for a .90 credit.
Metrics:
Max Profit: $90
Max Loss: $1410 (assuming stock goes to zero)
Break Even/Cost Basis in Shares: 14.10/share
ROC% at Max as a Function of Notional Risk: 6.4%
Notes: 30-day implied still high here, so doing something a little more risk adverse with a far out-of-the-money short put that still pays >5% ROC at max as a function of notional risk. Ridiculous that a 2.25 delta strike is paying that amount. The one minor downside: markets aren't the most liquid here; I got filled at .90 when markets were .10 wide. They've splayed out to .30 wide since ... .
Metrics:
Max Profit: $90
Max Loss: $1410 (assuming stock goes to zero)
Break Even/Cost Basis in Shares: 14.10/share
ROC% at Max as a Function of Notional Risk: 6.4%
Notes: 30-day implied still high here, so doing something a little more risk adverse with a far out-of-the-money short put that still pays >5% ROC at max as a function of notional risk. Ridiculous that a 2.25 delta strike is paying that amount. The one minor downside: markets aren't the most liquid here; I got filled at .90 when markets were .10 wide. They've splayed out to .30 wide since ... .
Trade closed: target reached
Out for a .45 debit, $45 profit (50% max).
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