Opening (IRA): KWEB May 17th 24 Monied Covered Call
Looking to get a fill on a monied covered call in KWEB (IVR/IV 12/33.2) while I wait around for some (or any) vol to show itself in the broader market. That IVR isn't great, but I'm going small so that I can potentially add at more favorable strikes/share cost bases should an opportunity present itself.
It's pre-market, so bid/ask is somewhat wide on both the shares and the short call, but I'm looking to buy a one lot and sell a -75 delta call against for around 26.09 in order to emulate the delta metrics of a 25 delta short put, have built-in short call defense, and to take advantage of IV skew on the call side (it's 39.4% at the 24 call strike; 32.4% at the 24 put).
On a side note, the on margin variant of a Plain Jane short put isn't paying spectacularly from a dollar and cents standpoint: the May 17th 24 short put is paying .37 at the mid, which isn't anything to write home about, but that would be on a BPE of 6.72 (5.51% ROC at max; 2.75% at 50% max; 23.63 break even) should you want to go the standard short put/acquire/cover route.
Break Even/Cost Basis in Shares/Buying Power Effect: 23.09
Max Profit: .91 ($91)
ROC at Max: 3.49%
ROC at 50% max: 1.74%
In all likelihood, I'll have to "penny up" if I don't get a fill for 23.09 ... .
It's pre-market, so bid/ask is somewhat wide on both the shares and the short call, but I'm looking to buy a one lot and sell a -75 delta call against for around 26.09 in order to emulate the delta metrics of a 25 delta short put, have built-in short call defense, and to take advantage of IV skew on the call side (it's 39.4% at the 24 call strike; 32.4% at the 24 put).
On a side note, the on margin variant of a Plain Jane short put isn't paying spectacularly from a dollar and cents standpoint: the May 17th 24 short put is paying .37 at the mid, which isn't anything to write home about, but that would be on a BPE of 6.72 (5.51% ROC at max; 2.75% at 50% max; 23.63 break even) should you want to go the standard short put/acquire/cover route.
Break Even/Cost Basis in Shares/Buying Power Effect: 23.09
Max Profit: .91 ($91)
ROC at Max: 3.49%
ROC at 50% max: 1.74%
In all likelihood, I'll have to "penny up" if I don't get a fill for 23.09 ... .
Dagangan aktif
My fill wasn't nearly as "sexy" as 23.09, which I somewhat expected, given the fact that I was pricing out the setup pre-market. In any event, filled for 23.37, .63 ($63) max profit; 2.70% at max; 1.35% at 50% max.Dagangan ditutup secara manual
Closing short of 50% max, for a 23.65 credit. .28 ($28) profit, 1.20% ROC.
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.