... for a 2.21/contract credit.
Metrics:
Probability of Profit: 54%
Max Profit: $221/contract
Max Loss/Buying Power Effect: Undefined/~1.72 on margin
Break Even/Cost Basis of Shares If Assigned: 7.79
Theta: 1.46
Delta: 41.92
Notes: Another potential "wheel" trade. Will initially shoot for 25% max for the short straddle, but will also be fine if assigned with a cost basis of 7.79/share (a 7.8% discount over current spot), after which I'll proceed to cover.
Metrics:
Probability of Profit: 54%
Max Profit: $221/contract
Max Loss/Buying Power Effect: Undefined/~1.72 on margin
Break Even/Cost Basis of Shares If Assigned: 7.79
Theta: 1.46
Delta: 41.92
Notes: Another potential "wheel" trade. Will initially shoot for 25% max for the short straddle, but will also be fine if assigned with a cost basis of 7.79/share (a 7.8% discount over current spot), after which I'll proceed to cover.
Note
Rolling the 10 short call down to the 8 intraexpiry for a .46/contract credit. Cost basis if assigned: 7.33/scratch at 2.67.Trade active
Early, random assignment on the 10 short put (it happens). The trade's now a Nov 16th 8 covered call with a cost basis of 7.33.Trade active
Covering the Nov 16th 8 short calls for near worthless (.03/contract) and selling the Jan 7 shorties for .35/contract. Cost basis of 6.98. Nothing you can do here but whittle away at cost basis ... .
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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.