... for a 17.91 debit.
Comments: At or near 52 week lows. Buying the back month 90 delta and selling the front month such that it pays for all the extrinsic in the long, with a resulting break even that is at or below where the underlying is currently trading. The Sept 19th 50C is shown at the 65 strike so that it appears on the chart.
Metrics:
Buying Power Effect: 17.91
Break Even: 67.91
Max Profit: 2.09
ROC at Max: 11.67%
50% Max: 1.05
ROC at 50% Max: 5.83%
Will generally look to take profit at 50% max, roll short call out and/or down and out at 50% max.
* -- Long call diagonal a/k/a a Poor Man's Covered Call.
Comments: At or near 52 week lows. Buying the back month 90 delta and selling the front month such that it pays for all the extrinsic in the long, with a resulting break even that is at or below where the underlying is currently trading. The Sept 19th 50C is shown at the 65 strike so that it appears on the chart.
Metrics:
Buying Power Effect: 17.91
Break Even: 67.91
Max Profit: 2.09
ROC at Max: 11.67%
50% Max: 1.05
ROC at 50% Max: 5.83%
Will generally look to take profit at 50% max, roll short call out and/or down and out at 50% max.
* -- Long call diagonal a/k/a a Poor Man's Covered Call.
Trade closed manually
Closed for an 18.88 credit, .97 ($97) profit; 5.42% ROC.
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.
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.