Following the premium. With a nearly 70% implied volatility rank and an implied volatility slightly north of 50%, I'm going nondirectional here (what's new) with this short strangle.
Metrics:
Probability of Profit: 65%
P50: 78%
Max Profit: $107/contract
Max Loss/Buying Power Effect: Undefined/~$250/contract
Theta: 2.55/contract
Delta: -7.55/contract
Notes: I'll shoot for taking this off at 50% max profit ... . Premium selling opportunities in underlyings with >70 implied volatility rank and >50 implied volatility are still thin in this market. My choices were XME, GDX, and GDXJ. I already have a couple of short strangles I layered on in GDX, so XME it is.
Metrics:
Probability of Profit: 65%
P50: 78%
Max Profit: $107/contract
Max Loss/Buying Power Effect: Undefined/~$250/contract
Theta: 2.55/contract
Delta: -7.55/contract
Notes: I'll shoot for taking this off at 50% max profit ... . Premium selling opportunities in underlyings with >70 implied volatility rank and >50 implied volatility are still thin in this market. My choices were XME, GDX, and GDXJ. I already have a couple of short strangles I layered on in GDX, so XME it is.
Note
Filled for $107 at the open.Trade closed manually
Taking this off a little early at 42% max profit (covered for a $61 debit) ... .
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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.