Opening (IRA): XBI May 16th -85C/December 19th 50C LCD*
... for a 29.50 debit.
Comments: Adding to my XBI position at or near 52-week lows, buying the back month 90 delta and selling the front month -30 delta that pays for all of the extrinsic in the long. (The 50C is depicted at a higher strike so that it fits on the chart).
Metrics:
Buying Power Effect: 29.50
Max Profit: 5.50
ROC at Max: 18.64%
50% Max: 2.25
ROC at 50% Max: 9.37%
Will generally look to take profit at 50% max and/or roll out short call to reduce downside break even.
* -- Long call diagonal.
Comments: Adding to my XBI position at or near 52-week lows, buying the back month 90 delta and selling the front month -30 delta that pays for all of the extrinsic in the long. (The 50C is depicted at a higher strike so that it fits on the chart).
Metrics:
Buying Power Effect: 29.50
Max Profit: 5.50
ROC at Max: 18.64%
50% Max: 2.25
ROC at 50% Max: 9.37%
Will generally look to take profit at 50% max and/or roll out short call to reduce downside break even.
* -- Long call diagonal.
Trade closed manually
Closed for a 30.00 credit; .50 ($50) profit. Still have the May 16th -87C/Oct 17th 60C on.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.