... for a 1.37 credit.
Comments: With this contract at greater than 50% max, rolling down and out for a realized gain of what I put it on for (2.01) (See Post Below) minus its current value (.79) or 1.22 ($122) credit. Going with the expiry nearest 45 days until expiry/16 delta strike. Total credits collected of 2.10 + 1.37 = 3.47.
Were I not to have been able to strike improve and receive a credit, I would've probably just left it alone another week and added a unit instead. By rolling it out, I (a) realize a gain; (b) receive a credit (reducing my cost basis further), (c) move the strike away from where the underlying is currently trading, thereby reducing buying power effect slightly; (d) diminish risk by being a strike further away from at-the-money; and (e) keep buying power free for "the next one" (although implied volatility is pretty decent here at 27.8%).
Comments: With this contract at greater than 50% max, rolling down and out for a realized gain of what I put it on for (2.01) (See Post Below) minus its current value (.79) or 1.22 ($122) credit. Going with the expiry nearest 45 days until expiry/16 delta strike. Total credits collected of 2.10 + 1.37 = 3.47.
Were I not to have been able to strike improve and receive a credit, I would've probably just left it alone another week and added a unit instead. By rolling it out, I (a) realize a gain; (b) receive a credit (reducing my cost basis further), (c) move the strike away from where the underlying is currently trading, thereby reducing buying power effect slightly; (d) diminish risk by being a strike further away from at-the-money; and (e) keep buying power free for "the next one" (although implied volatility is pretty decent here at 27.8%).
Publications connexes
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Publications connexes
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.