OPENING: OIH AUG 17TH 26 SHORT STRADDLE (LATE POST)
... for a 2.36/contract credit.
Metrics:
Probability of Profit: 55%
Max Profit: $236/contact
Max Loss/Buying Power Effect On Margin: Undefined/$525/contract
Break Evens: 23.64/28.36
Delta: -9.37
Theta: 2.1
Notes: Did this from my phone on Friday ... . Although I like to see >35% background implied volatility when pulling the trigger on these, at 30.3%, this isn't horrible. Will shoot for 25% max/roll at 24 DTE or on side approaching worthless.
Metrics:
Probability of Profit: 55%
Max Profit: $236/contact
Max Loss/Buying Power Effect On Margin: Undefined/$525/contract
Break Evens: 23.64/28.36
Delta: -9.37
Theta: 2.1
Notes: Did this from my phone on Friday ... . Although I like to see >35% background implied volatility when pulling the trigger on these, at 30.3%, this isn't horrible. Will shoot for 25% max/roll at 24 DTE or on side approaching worthless.
Dagangan aktif:
Realizing gains where I can find them ... . Rolling the 26 short straddle from Aug to the Oct 25/26 tight short strangle for a small realized gain and a .62/contract credit. Scratch at 2.98. This adds some flexibility to the setup -- I can roll a side up or down, and keeps the net delta of the setup short while improving my scratch point. The downside is that I've extended duration, which slows theta decay.