https://www.tradingview.com/chart/OsBXckpZ/
1. After earnings many stocks hit a low notch in IV which looking at IV chart looks very predictable (others look more random as to when)
This calendar will benefit from a volatility expansion and time looks about right and have been meaning to try one of these.
2. Price chart looks like support at around 16 to me and deltas exactly balanced there at the money (ATM).
3. News - checked some favorites agreeing they think its oversold, earnings sell-off overdone. We will see.
Metrics spot 16.09 Theta 0.63 delta 2 Sep1 short 16P Oct20 long 16P debit / scratch .52.
Theta being .63. is good being positive the short will decay faster than the long increasing position value.
1. After earnings many stocks hit a low notch in IV which looking at IV chart looks very predictable (others look more random as to when)
This calendar will benefit from a volatility expansion and time looks about right and have been meaning to try one of these.
2. Price chart looks like support at around 16 to me and deltas exactly balanced there at the money (ATM).
3. News - checked some favorites agreeing they think its oversold, earnings sell-off overdone. We will see.
Metrics spot 16.09 Theta 0.63 delta 2 Sep1 short 16P Oct20 long 16P debit / scratch .52.
Theta being .63. is good being positive the short will decay faster than the long increasing position value.
Transaction en cours:
Oops, updates. on Aug 21 rolled (bought sep1 16P to close and sold sep15 16P to open) the short leg for credit .17 taking the scratch or break-even to .35.
On Aug 25 did same. Rolled short leg sep15 16P -> sep29 16P for credit .15 new break-even is .20. Expecting IV to expand increasing value so can take 10-20% out of this small experimental trade. At this point is has been hanging close to the scratch/break-even point.
On Aug 25 did same. Rolled short leg sep15 16P -> sep29 16P for credit .15 new break-even is .20. Expecting IV to expand increasing value so can take 10-20% out of this small experimental trade. At this point is has been hanging close to the scratch/break-even point.
Transaction en cours:
This (Thursday) morning rolled the short Sep. 29 16 put up to 16.5 and out to Oct 6 for a credit of .23 dropping the break-even to -0.03.
This used to confuse me - now cost basis is a credit of .03 (x100 share=$3.00/contract). Most of my trades are credit spreads and profit when buying back for a lower debit. This debit calendar profits when selling for a greater credit In this case am pushing the profit target a bit with an order to close at cr .10 (gross profit $13/contract)
rol=sep29 16P>oct6 16.5P
This used to confuse me - now cost basis is a credit of .03 (x100 share=$3.00/contract). Most of my trades are credit spreads and profit when buying back for a lower debit. This debit calendar profits when selling for a greater credit In this case am pushing the profit target a bit with an order to close at cr .10 (gross profit $13/contract)
rol=sep29 16P>oct6 16.5P
