OPENING: XOP SEPT 21ST 40/44 SHORT STRANGLE ...
Updated
... for a 1.31/contract credit.
Probability of Profit: 62%
Max Profit: 1.31 ($131)/contract
Max Loss/Buying Power Effect: Undefined/6.68 ($668)
Break Evens: 38.69/45.31
Delta: 3.65
Theta: 2.75
Notes: Giving myself more room to be wrong with a short strangle in the September cycle. Implied volatility remains so-so here at 24.7% (near the bottom of its 52-week range), so it might be more worthwhile to wait for higher implied. That being said, I'm basically working XOP as an "all weather core position."
Probability of Profit: 62%
Max Profit: 1.31 ($131)/contract
Max Loss/Buying Power Effect: Undefined/6.68 ($668)
Break Evens: 38.69/45.31
Delta: 3.65
Theta: 2.75
Notes: Giving myself more room to be wrong with a short strangle in the September cycle. Implied volatility remains so-so here at 24.7% (near the bottom of its 52-week range), so it might be more worthwhile to wait for higher implied. That being said, I'm basically working XOP as an "all weather core position."
Trade active
Rolled the 44 short call down to the 43 intraexpiry for a .26/contract credit (delta balancing) on this down move ... . Scratch at 1.57/contract.Trade active
Rolling to the Oct 39/43 short strangle (recentering around current price) for a realized gain and a .64/contract credit; scratch at 1.57 + .64 = 2.21/contract versus 2.06 current value of short strangle.Trade active
Staying aggressive: rolling the 43 short call down one strike to the 42 (the 30 delta) on this implosion for a realized gain on the call side and a .23/contract credit. Scratch at 2.44.Trade active
I probably should have just covered the Oct 39/42 short strangle in profit, but rolled out for the realized gain instead to the Nov 38/41 for a .72/contract credit with a scratch at 3.16. Stuck with her now ... . Lol.Trade active
Rolling the 38 short put up to the 39 (delta balancing) for a .34/contract credit. Scratch at 3.50.Trade active
Rolling the 39 to the 40 for a .36/contract credit. Scratch at 3.86.Trade active
Rolling the 40 to the 41 for a .39/contract credit. Scratch at 4.25/contract. Now a Nov 41 short straddle.Trade closed manually
Covering here for a 4.09/contract debit to get into something closer in time. Small happy meal winner.
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