Although there are some warts on this particular trade (namely, the reason why SRPT tanked today) and the fact that liquidity in the options is not that great, I couldn't resist getting over $100 credit on a short 6 .... .
Metrics:
Probability of Profit: 65%
Max Profit: $125/contract
Max Loss: $475 (the strike price minus the credit received).
Notes: Some price discovery may be worthwhile here. I got filled for $118, but if I'd been slightly more patient, I probably could have gotten a few more bucks out of it. I'll look to take it off at 50% max profit.
Metrics:
Probability of Profit: 65%
Max Profit: $125/contract
Max Loss: $475 (the strike price minus the credit received).
Notes: Some price discovery may be worthwhile here. I got filled for $118, but if I'd been slightly more patient, I probably could have gotten a few more bucks out of it. I'll look to take it off at 50% max profit.
Comment:
This is kind of a lesson in why getting into a trade with a low liquidity underlying/low liquidity options can suck in the short term. Price popped substantially after I entered the trade; however, due to low volume/open interest in the June 17th 6 put, price in the option hasn't moved much ... .
Comment:
Covering for a $107 credit, so it's basically a $5 winner after fees/commissions. 20-20 hindsight: work FDA approval stuff like earnings: keep it close in time ... .