Metrics: Max Loss On Setup: $443/contract Max Profit On Setup: $307/contract; $153/contract at 50% max for 34.5% ROC Break Even on Setup: 49.43 versus 50.18 spot Debit Paid to Spread Width Ratio: 59.1% Theta: 1.22 Delta: 31.54 Notes: With earnings on Thursday before market open and the underlying at the low end of its 52-week range, I'm looking at taking a...
METRICS: Max Loss On Setup: $476/contract Max Profit on Setup: $224/contract; $112 at 50% max with a Return on Capital of 23.5% at 50% max Break Even Versus Spot: 35.76 versus 35.76 Debit Paid to Spread Width Ratio: 68% Delta: 35.47 Theta: .51 Notes: A similar play to the BMY upward call diagonal (See Post Below), but without all the drama around earnings (which...
... for a 3.09/contract debit. Metrics: Max Loss/Buying Power Effect on Setup: $309 Max Profit on Setup: $141 Break Even on Setup: 21.09 vs. 20.71 spot Debit Paid to Spread Width Ratio: 68.7 Delta: 37.91 Theta: .61 Notes: The front month short doesn't pay for all of the extrinsic in the back month long (which is generally why you want your break even to be at...
METRICS: Max Loss/Buying Power Effect on Setup: $112 Max Profit on Setup: $88 Break Even Versus Spot: 6.12 versus 6.50 Debit Paid to Spread Width Ratio: 56% Notes: I'm fairly dubious that I'll get filled at the mid price on this, since that debit paid/spread width ratio is unusual to say the least. Moreover, the setup is bid 1.00/mid 1.12/ask 1.25, and I'm...
Metrics: Max Loss/Buying Power Effect on Setup: $338/contract Max Profit on Setup: $162/contract Break Even: $28.38 versus $28.63 spot Debit Paid to Spread Width Ratio: 67.6% Delta: 39.2 Theta: .61 Notes: A bullish assumption shot at the low end of the range. Ordinarily, I like to go split month with these to give me more time to reduce cost basis, but there...
... for a 3.86/contract debit. Metrics: Max Profit on Setup: $114/contract Max Loss on Setup: $386/contract Break Even: 26.86 vs. 26.75 spot Debit Paid to Spread With Ratio: 77.2% Delta: 30.39 Theta: 1.14 Notes: Somewhat dissatisfied with my OIH position (hey, I entered too early; it happens), adding some long petro with this, my preferred go-to. Will look for...
METRICS: Max Loss on Setup: $422 Max Profit on Setup: $178 Break Even Versus Spot: 35.22 versus 35.37 Debit Paid to Spread Width Ratio: 70.3% Delta: 50.2 Theta: .6 Notes: Tomorrow's the last day on which 2018 tax losses can be realized, so I can foresee some additional, last minute dumpage, followed by the Big Dicks buying the dip on Wednesday to position long...
Metrics: Max Profit on Setup: $108 Max Loss/Buying Power Effect on Setup: $292 Break Even vs. Spot: 17.92 vs. 18.25 Debit Paid to Spread Width Ratio: 73% Delta: 30.35 Theta: .82 Notes: With high implied volatility rank/30-day implied (82/67) and fairly long-term weakness, putting on some bullish assumption here without hanging a ton of buying power out there if...
Metrics: Max Loss/Buying Power Effect on Setup: 2.18/contract Max Profit on Setup: .82/contract Break Even: 23.18 vs. 22.81 spot Debit Paid to Spread Width Ratio: 72.7% Theta: .26 Delta: 37.46 Notes: Here, I'm just shopping around for particularly weak sectors in which to put on bullish assumption plays that will have plenty of time to work out and/or reduce...
... for a 2.62/contract credit. Metrics: Max Profit on Setup: $138/contract Max Loss on Setup: $262/contract Debit Paid to Spread Width Ratio: 65.5% Break Even: 18.62 vs. 18.60 spot Notes: Taking a bullish assumption directional shot in OIH with plenty of time to work out/reduce cost basis ... . Will look at taking profit at 50% max.