BOT VERTICAL XLK 100 20 SEP 19 79/78 PUT @.23, .77 max profit.
Risk to reward ratio just under 1:3
Gives a breakeven price target of 78.77 which is 3.4% lower from the spot price at the time of trade.
Longed the 30 delta, shorted the 25 delta.
It's a lower probability trade with under 30% estimated probability.
Rationale:
XLK seems to be hugging the high side of the long term trend. It *could* continue to grind higher for the next month, or we could get another 'techwreck' during this earnings season.
IV is relatively low at the moment, so I bought a cheap bearish put spread. IV Rank is only 8%. The IV is 75% of the years HV.
AAPL and MSFT are the largest holdings.
Oddly enough Visa and Mastercard together make up 10% .
Next it's INTC, ADBE, ORCL , PYPL, and IBM which round out the top ten holding.
Risk to reward ratio just under 1:3
Gives a breakeven price target of 78.77 which is 3.4% lower from the spot price at the time of trade.
Longed the 30 delta, shorted the 25 delta.
It's a lower probability trade with under 30% estimated probability.
Rationale:
XLK seems to be hugging the high side of the long term trend. It *could* continue to grind higher for the next month, or we could get another 'techwreck' during this earnings season.
IV is relatively low at the moment, so I bought a cheap bearish put spread. IV Rank is only 8%. The IV is 75% of the years HV.
AAPL and MSFT are the largest holdings.
Oddly enough Visa and Mastercard together make up 10% .
Next it's INTC, ADBE, ORCL , PYPL, and IBM which round out the top ten holding.