... 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...
... for an 81.63 debit. Comments: 32.1% 30-Day IV. My general preference for ETF IV is >35%, but there isn't much currently there in my ETF screener, and I'm already in a GDX position: TQQQ (52.3%); USO (38.1%); GDXJ (35.0%). Buying a one lot and selling the -75 delta call against to emulate a 25 delta short put with "built-in" defense of the position via...
... for a 179.87 debit. Comments: Doing another one of these in March with a short call strike and cost basis better than what I currently have on at the 186. Selling the -75 delta call, buying a Johnny one lot to emulate a 25 delta short put in order to take advantage of call side IV skew. 3.13 max profit on BPE of 179.87; 1.74% ROC at max; .87% at 50%...
... 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.
... for a 148.83 debit. Comments: Buying a one lot and selling a -78 delta call against to emulate a +22 delta short put, while taking some advantage of IV skew to the call side (54.32% at the 155 call versus 46.24% at the same put strike). Max profit of 6.17 on BPE of 148.83; 4.15% ROC at max; 2.07% at 50% max. It is entirely possible that I will regret this...
... for a 181.70 debit. Comments: Buying stock and selling the -75 call again to emulate a 25 delta short put that is "defense ready" via roll of the short call. 4.30 ($430) max on buying power effect of 181.70; 2.37% ROC at max; 1.18% at 50% max. Will generally look to take profit at 50% max and/or roll out the short call on price's traverse of the short call...
... for a 421.04 debit. Comments: Buying a Johnny one lot and selling a -75 call against to emulate a 25 delta short put, but with richer premium due to call side skew. As I start to go out in duration, monied short calls get less liquid, so I may return to just selling puts due to that. Just trying to get up and running after having flattened out at the end...
... for a 355.08 debit. Comments: Buying a one lot and selling a -75 delta call against to emulate the delta metrics of a 25 delta short put, but with a little richer premium due to call IV skew. I already have February and March setups on, so setting up my tent out in April here.
... for a 183.65 debit. Comments: Doing things a little bit differently here, buying stock and selling the -75 delta call against to emulate the delta of a 25 delta short put, but with the ability to immediately defend the position with the short call, rather than waiting to roll the short put. First, the metrics: Max Profit: 3.35 ($335) Buying Power...
... for a 371.81 debit. Comments: Buying stock and selling the -75 call against to emulate a 25 delta put that is defense-ready via roll of the short call. This is temporarily in lieu of what I ordinarily do in broad market, which is to target the <16 delta strike paying around 1% of the strike in credit and slightly more aggressive delta-wise. This only makes...
... for a 442.57 debit. Comments: Buying stock and selling the -75 call against to emulate the delta of a 25 delta short put with the ability to defend the position immediately on test of the short call or the break even. Metrics: Buying Power Effect/Break Even/Cost Basis: 442.57 Max Profit: 6.43 ($643) ROC at Max: 1.45% ROC at 50% Max: .73% Will generally...
... for a 378.53 debit. Comments: Similar to my IWM February 16th 187 Monied Covered Call Post. (See Below). Metrics: Buying Power Effect/Break Even/Cost Basis: 378.53 Max Profit: 6.47 ($647) ROC as a Function of Buying Power Effect: 1.71% ROC at 50% Max: .85% Generally, take profit at 50% max; roll short call down or down and out defensively on test.
... for an 8.15 debit. Comments: The IV in here is redonk (IVR 96/IV 238.6%), no doubt because the merger decision between SAVE and JBLU is in a court room, with the trial scheduled to finish up at year end and a ruling to follow thereafter. At the moment, the buyout proposal is for $33.50/share and/or a $29.80 "Deal-Through Price." While most are probably...
... for a 191.76 debit. Metrics: Cost Basis/Break Even: 191.76 Max Profit: 8.24 ($824) Max Profit ROC %-age: 4.3% 50% of Max: 4.12 ($412) 50 Max ROC %-age: 2.1% Delta/Theta: 23.45/12.70 Here, selling the -75 delta call against a one lot in one of the higher IV single names (currently at 50.5%) to emulate a 25 delta short put, but with slightly better profit...
... for a 33.04 debit. Comments: Selling the monied -75 delta call against a one lot to potentially take advantage of early random call away/*assignment. 33.04 break even with a 1.46 ($146) max profit; 4.42% ROC/32.9% annualized as a function of buying power effect at max. "Random" call away occurs when someone holding the 34.5 long call choses to exercise it...