This is a continuation of long-running trade that I kicked the can on. (See Post Below).
With price finishing the day wayyy below my 10 short put, I will find shares in my account next week via assignment. In anticipation of that occurring, I previously sold a February 21st 5.5 call and have a cost basis of 5.22. I'm fine with being called away at 5.50 should...
... for a .05 debit.
Notes: Scratch at 8.45. Will look at rolling out the 21P, 31P next week and then re-upping short calls to cut net delta and reduce cost basis further. Alternatively, I can just wait and see what happens running into expiry, with the most likely outcome that I get assigned on at least the 31 and possibly on both the 21 and 31, with the...
... for a .05 debit.
Notes: Here, just stripping off some approaching worthless short call. Because my scratch here is 8.59, I'm not going to do a ton further with it running into March expiry, except to strip off "approaching worthless" options. This is because the most likely scenario is assignment on the 31 short put, where my cost basis is 31 minus 8.59 or...
... for a .37 credit. Scratch at 7.43; delta/theta 48.52/1.07, extrinsic of .81, cost basis of 14.57 if assigned on the 22 short put.
Notes: A continuation of a trade (See Post Below) I've been working to get into a state where I'm not hugely underwater from a cost basis standpoint if I get assigned on the 22 short put, which is the most likely outcome of this. ...
Decided to do something slightly different in Micron than an upward call diagonal (See Post Below) ... . Here's what's important about this trade:
Max Loss on Setup: $151/contract
Max Profit on Setup: Indeterminable
Front Month Value on Setup: $253 credit
Back Month Value on Setup: $404 debit
Theta: .99
Delta: 2.92
In a nutshell, it's a fairly delta neutral,...
Getting long homebuilders here at support.
-1 Sep21 $39 put for $.84 cr.
Risk: 2x cr received or I'll continue holding and rolling.
Profit: 50% cr received or continue to roll.
Notional Value: $3900/contract
This is part of a small WFT covered call I'm working ... . The strategy here is to continue to reduce cost basis in the underlying shares. Here I'm doing it with a July 15th 4/6 short strangle in an attempt to sell premium while the implied volatility is still high ... .
Metrics:
Probability of Profit: 63%
Max Profit: $61/contract
Max Loss/Buying Power Effect:...
