... for a 39.64 debit. Comments: After taking off my 44 monied for a small profit, re-upping with a setup in the same expiry, but with a better break even. Selling the -75 call against a one lot of stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. Metrics: Buying Power Effect/Break Even: 39.64 Max Profit:...
... for a 43.00 debit. Comments: High IVR/IV at 52.7/38.7. Going monied here, buying a Johnny one lot and selling the -75 delta call against to emulate the delta metrics of a 25 delta short put to take advantage of elevated IV on the call side and to have built-in position defense via the short call. This is slightly shorter duration than I like to go (39...
... for an 80.91 debit. Comments: After taking off my August 88 monied for a small profit, re-upping in shorter duration, but with a better break even than what I had with the August 88. Selling the -75 delta call against a one lot of stock to emulate the delta metrics of a 25 delta short put, but with built-in short call defense. My general goal here is to...
... for a 51.52 debit. Comments: Re-upping in the June 28th expiry with a monied covered call, as there is no July yet. Selling the -75 delta call against a one lot to emulate the delta metrics of a 25 delta short put to have built-in defense via the short call and to take advantage of call side IV skew. Metrics: Buying Power Effect/Break Even: 51.52 Max...
Bought a one lot of shares and sold an in-the-money -75 delta call to emulate a 25 delta short put to take advantage of call IV skew and to have built-in pro via the short call. Metrics: Break Even/Cost Basis in Shares: 52.71 Max Profit: 2.29 ($229) ROC %-age at Max: 4.34% ROC %-age at 50% Max: 2.17% Will generally look to take profit at 50% max, add at...
Looking to get a fill on a monied covered call in KWEB (IVR/IV 12/33.2) while I wait around for some (or any) vol to show itself in the broader market. That IVR isn't great, but I'm going small so that I can potentially add at more favorable strikes/share cost bases should an opportunity present itself. It's pre-market, so bid/ask is somewhat wide on both the...
... for a 28.24 debit. Comments: GDX (IVR/IV 40.8/ 32.9) is at the top of my IV screener for ETF's (along with GDXJ, which has higher IV, but is less liquid). Buying stock and selling the -71 delta call against, resulting in a max profit potential of .76 ($76)/contract; 2.69% ROC at max; 1.35% at 50% max. That .76 isn't massively compelling, but the ROC is...
... for a 21.01 debit. Comments: There isn't much that is weak in this market ... . Adding a rung to my GDX position out in August at a strike lower than what I currently have on. (See Posts Below). .99 max on BPE of 21.01; 4.7% ROC at max; 2.4% at 50% max.
... for a 192.24 debit. Comments: Opened this in late Friday's session as it floated to the top of my IV screener with IVR/IV at 106/39. Sold the -75 delta call against 100 delta of long stock, with a resulting cost basis of 192.24/share. This is to emulate a 25 delta short put and to take advantage of call side IV skew while having "built-in" position defense...
... for an 85.94 debit. Comments: 32.5% 30-Day IV. Buying a one lot and selling a -75 delta call against to emulate a 25 short put, take advantage of call side IV skew, and to have built-in defense via the short call. Metrics: Cost Basis/Break Even/Buying Power Effect: 85.94 Delta/Theta: 28.5/4.31 Max Profit: 2.06 ($206) ROC at Max: 2.40% ROC at 50% Max:...
... for a 50.93 debit. Comments: Selling the -75 delta strike against a one lot to emulate a 25 delta short put with built-in defense via the short call. The call IV skew that I was looking to take advantage of before has evaporated somewhat, with the same strike short put paying about the same (1.94) as the max profit potential of this setup. Since I'm...
... for a 22.83 debit. Comments: Selling the -75 call against a one lot here out in June where I have covered calls at the 29, 27, and now 24 strikes. 1.17 max on BPE of 22.83; 5.12% ROC at max; 2.56% at 50% max. Going monied CC here in lieu of an equivalently delta'd short put to take advantage of call side IV skew (39.6% on the call side; 29.18% on the put...
... for a 19.90 debit. Comments: Looking to establish a position in FXI over time on weakness via monied covered calls to emulate selling a 25 delta short put, but with built-in downside defense via the short call and to take advantage of call side IV skew. The underlying also has a dividend that pays out in June and December, but with somewhat variable...
... for a 64.51 debit. Comments: IV of 32.3%. Selling the -75 call against a one lot of stock to emulate a 25 delta short put with built-in short call defense. Metrics: Cost Basis in Stock/Break Even/BPE: 64.51/share Max Profit: 1.49 ROC at Max: 2.31% ROC at 50% max: 1.15%
... for a 47.75 debit. Comments: Dabbling a smidge in the leveraged ETF due to its high IV (56.3% 30-day). Selling the -75 delta call against a one lot to emulate a 25 delta short put, but with "built-in" defense via the short call, which can be rolled down, out, or down and out to reduce cost basis and setup break even. As usual with the sort of thing, will...
... for a 397.94 debit. Comments: Re-establishing here in the Q's with a +25 delta monied covered call to take advantage of call side skew. Will look to add at intervals, dispersing risk across expiries, and generally take profit at 50% max and/or roll out the short call on test. Metrics: Max Profit: 7.06 ($706) ROC %-age at Max/50% Max: 1.77% at max; .89 at...
... for a 172.42 debit. Comments: While I'm waiting for a July contract to open up in broad market instruments (IWM, QQQ, SPY), shopping around the ETF space for premium. Relative to broad market, SMH IV isn't horrible (the 30-day is currently at 29.3%). Selling the -75 delta call against long stock, to emulate a 25 delta short put and to take advantage of...
... for a 171.23 debit. Comments: Buying stock and selling the -75 call against to emulate the delta metrics of a 25 delta put. This setup gives me a slight bump in premium over selling the 25 delta put due to call IV skew, along with built-in position defense with the short call. Laddering out over time after flattening out at the end of the year. I'll...