OPENING: PBR NOV 16TH 12 SHORT PUT

... for a 1.07 per contract.

Metrics:

Probability of Profit: 64%
Max Profit: $107/contract
Max Loss/Buying Power Effect: 10.94/~2.00 on margin
Break Even/Cost Basis in Shares if Assigned: 10.94/share (a 12.13% discount over current spot).
Theta: 1.28
Delta: 39.24

Notes: "Wheeling" this small high implied vol underlying, with the basic cycle being short put, run to expiry, cover if assigned, exit profitably, lather, rinse, repeat ... .

Trade fermée manuellement:

Covering here for a .79/contract debit (26% max) with 45 DTE. When you get >25% of max with that much time left, I say, "money, take, run ... ."