Opening (IRA): INDA March 21st -52C/June 20th 2 x 45C/-50C
... covered zebra for a 9.93 debit.
Comments: I fiddled mightily with bullish assumption setups in this underlying and settled on this setup -- a covered zebra (zero extrinsic ratio back spread).
It consists of two parts: (1) a longer-dated zebra where I bought 2 x the 75 delta strike call and sold the -50 delta call to synthesize a 100 delta setup; (2) against which I sold a shorter-dated -30 delta call. This emulates the delta metrics of a covered call, but with a smaller buying power effect than either a covered call or a long call diagonal.
Metrics:
Buying Power Effect: 9.93 debit
Break Even: 49.96/share
Max Profit: 2.04
While you can manage the separate, bullish assumption spreads of the setup, I'll look to money/take/run at 110% of what I put it on for and/or look to roll out the short call to reduce my break even further should my take profit not hit.
Comments: I fiddled mightily with bullish assumption setups in this underlying and settled on this setup -- a covered zebra (zero extrinsic ratio back spread).
It consists of two parts: (1) a longer-dated zebra where I bought 2 x the 75 delta strike call and sold the -50 delta call to synthesize a 100 delta setup; (2) against which I sold a shorter-dated -30 delta call. This emulates the delta metrics of a covered call, but with a smaller buying power effect than either a covered call or a long call diagonal.
Metrics:
Buying Power Effect: 9.93 debit
Break Even: 49.96/share
Max Profit: 2.04
While you can manage the separate, bullish assumption spreads of the setup, I'll look to money/take/run at 110% of what I put it on for and/or look to roll out the short call to reduce my break even further should my take profit not hit.
Dagangan ditutup secara manual
Closed for a 10.63 credit; .70 ($70) profit.
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.