Opening (IRA): XBI Sept 19th 60C/April 17th -90C LCD*
... for a 26.68 debit.
Comments: Taking a bullish assumption directional shot near 52 week lows, buying the 90 delta back month and selling a front month that pays for all the extrinsic in the long, resulting in a break even that is at or below where the underlying is currently trading. The 60 long call is shown at 80 so that it fits on the chart ... .
Metrics:
Buying Power Effect: 26.68
Break Even: 86.88
Max Profit: 3.32
ROC at Max: 12.44%
50% Max: 1.66
ROC at 50% Max: 6.22%
Delta/Theta: 53.79/3.51
Will generally look to take profit on the setup as a unit at 50% max and/or roll out the short call at 50% max to reduce cost basis/downside break even.
* -- Long Call Diagonal
Comments: Taking a bullish assumption directional shot near 52 week lows, buying the 90 delta back month and selling a front month that pays for all the extrinsic in the long, resulting in a break even that is at or below where the underlying is currently trading. The 60 long call is shown at 80 so that it fits on the chart ... .
Metrics:
Buying Power Effect: 26.68
Break Even: 86.88
Max Profit: 3.32
ROC at Max: 12.44%
50% Max: 1.66
ROC at 50% Max: 6.22%
Delta/Theta: 53.79/3.51
Will generally look to take profit on the setup as a unit at 50% max and/or roll out the short call at 50% max to reduce cost basis/downside break even.
* -- Long Call Diagonal
Trade closed manually
Money, take, run on this broad market up move ... . Closed for a 27.73 credit; 1.05 ($105) profit; 3.94% ROC.
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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.
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.