OPENING: AMD 17/20/27.5/30.5 IRON CONDOR
... for a 1.06/contract credit.
Metrics:
Max Profit: $106/contract
Max Loss/Buying Power Effect: $194/contract
Break Evens: 18.94/28.56 (wide of expected move)
Delta: -1.18
Theta: 2.97
Notes: High rank/implied at 85/87 and announcing earnings after market close. Looking for an inzee outzee quickee dirtee, hopefully for 50% max. Two other naked possibilities: the November 16th 23.5 short straddle (paying 4.61; 1.15 profit at 25% max) or the November 16th 20/27.5 short strangle (paying 1.81; .90 profit at 50% max).
Metrics:
Max Profit: $106/contract
Max Loss/Buying Power Effect: $194/contract
Break Evens: 18.94/28.56 (wide of expected move)
Delta: -1.18
Theta: 2.97
Notes: High rank/implied at 85/87 and announcing earnings after market close. Looking for an inzee outzee quickee dirtee, hopefully for 50% max. Two other naked possibilities: the November 16th 23.5 short straddle (paying 4.61; 1.15 profit at 25% max) or the November 16th 20/27.5 short strangle (paying 1.81; .90 profit at 50% max).
Transaction en cours:
Rolling the call side down to a fly (it's now a 17/20/20/23) for a .68/contract credit; scratch at 1.74/contract.
Trade fermée manuellement:
Covering here for a 2.30/contract debit (.56 loss). Although this trade could work out, it's amenable to max loss with price dancing around the 17 long puts. Since it's a three-wide, this would mean a max loss of 1.26 (3-wide minus total credits received of 1.78) if it doesn't move off of 17 versus the loss of .56 I'm taking here with 17 DTE. With a bevvy of high vol to be had in the broad market at the moment, best to take the loss, free up the BP, and move on to working something higher POP.