Opening (IRA): XBI March 21st 86 Covered Call
... for an 84.20 debit.
Comments: Adding to my position at strikes better than what I currently have on, selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 84.20
Max Profit: 1.80
ROC at Max: 2.14%
50% Max: .90
ROC at 50% Max: 1.07%
Will generally look to take profit at 50% max, add at intervals, assuming I can get in at strikes better than what I currently have on, and/or roll out the short call if my take profit isn't hit.
Comments: Adding to my position at strikes better than what I currently have on, selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 84.20
Max Profit: 1.80
ROC at Max: 2.14%
50% Max: .90
ROC at 50% Max: 1.07%
Will generally look to take profit at 50% max, add at intervals, assuming I can get in at strikes better than what I currently have on, and/or roll out the short call if my take profit isn't hit.
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.