Opening (IRA): XBI April 19th 77 Monied Covered Call
... for a 74.27 debit.
Comments: Adding a "rung" to my XBI position here .... . Selling the -75 delta call and buying a one lot to emulate a 25 short put to take advantage of IV skew in calls (40.2% at the 77 strike on the call side; 33.0% on the put).
2.73 max profit on BPE of 74.27; 3.68% ROC as a function of BPE at max; 1.84% at 50% max.
Comments: Adding a "rung" to my XBI position here .... . Selling the -75 delta call and buying a one lot to emulate a 25 short put to take advantage of IV skew in calls (40.2% at the 77 strike on the call side; 33.0% on the put).
2.73 max profit on BPE of 74.27; 3.68% ROC as a function of BPE at max; 1.84% at 50% max.
Trade closed manually:
Taking profit ... . Closing here for a 75.50 credit. 1.23 ($123) profit. Still have the April 19th 84 CC on.