... for a 6.79/contract debit.
Comments: Taking a directional shot on weakness, with some opportunity to reduce cost basis in the setup via roll of the short call if I don't get the move immediately.
Here, buying the 90 delta in the back month, selling the at-the-money in the front one, resulting in a 31.79 break even relative to the 32.58 where it's trading at the moment.
Paying 6.79 for an 8-wide, with max profit being the difference between the width of the diagonal (8.00) and what I paid (6.79) or 1.21 ($121), which would be a 17.8% return on capital as a function of buying power effect, assuming price for the entire shebang converges on 8.00.
Comments: Taking a directional shot on weakness, with some opportunity to reduce cost basis in the setup via roll of the short call if I don't get the move immediately.
Here, buying the 90 delta in the back month, selling the at-the-money in the front one, resulting in a 31.79 break even relative to the 32.58 where it's trading at the moment.
Paying 6.79 for an 8-wide, with max profit being the difference between the width of the diagonal (8.00) and what I paid (6.79) or 1.21 ($121), which would be a 17.8% return on capital as a function of buying power effect, assuming price for the entire shebang converges on 8.00.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.