Opening (Margin): BITO January 21st 25/44 Short Strangle
... for a 1.59 credit.
Comments: Selling ~16 delta premium in high implied BITO (30-day at 82%). Unfortunately, because the broker's basically requiring that this particular underlying be cash-secured, the ROC isn't very sexy as a function of buying power effect: $159 credit on a buying power effect of $2416 or 6.6% at max/3.3% at 50% max.
In any event, will look to take profit at 50% max; manage sides on approaching worthless or side test.
Comments: Selling ~16 delta premium in high implied BITO (30-day at 82%). Unfortunately, because the broker's basically requiring that this particular underlying be cash-secured, the ROC isn't very sexy as a function of buying power effect: $159 credit on a buying power effect of $2416 or 6.6% at max/3.3% at 50% max.
In any event, will look to take profit at 50% max; manage sides on approaching worthless or side test.
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