In the last 90 days we had a 14% down move and got rejected at the 200 EMA. We might still have more room to go to the downside, but I am betting that we are still correcting and some buyers may start to come in.
With an implied volatility rank of 34 and 50 days to expiration, I sold a Jade lizard to eliminate the risk to the upside and still have room to the...
XLE started to bounce back from bottom. I expect it to be going up and then start side way. So I would setup a Jade Lizard position.
Position:
Sell 1 June 65 Put
Sell 1 June 68.5/69.5 Call Spread
Total Premium: 1.04$
Break Even: $63.96,
Profit area: $63.96 $69.54. No upside risk.
Pop %: 84%
