VanEck Semiconductor ETF
Long
Updated

Opening (IRA): SMH Sept 20th 199 Covered Call

74
... for a 192.24 debit.

Comments: (High IVR/IV at 108.2/47.6). Buying stock and selling -75 calls against to emulate the delta metrics of a 25 delta short put, but with built-in short call defense.

Will generally look to take profit at 50% max; roll out the short call for duration and credit on test.
Note
Metrics: 6.76 ($676) max; 3.52% ROC at max; 3.38 ($338) at 50% max; 1.76% ROC at 50% max.
Trade closed manually
Closed for a 193.53 debit here; 1.29 ($129) profit.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.