OPENING: XOP SEPT 21ST 42/43 SHORT STRANGLE

... for a 3.45/contract credit.

Metrics:

Max Loss/Buying Power Effect: Undefined/8.08 (on margin)
Max Profit: 3.45/contract
Break Evens: 38.55/46.45
Theta: 3.09
Delta: -3.53

Notes: Moving out to the September monthly with a narrow strangle ... . 30-day implied isn't as high as I'd like it to be (currently at 28.8%), but it's the second highest, liquid exchange-traded fund that comes up in my screener behind EWZ.

Transaction en cours:

Rolling the 42 short put up for a realized gain and a .42/contract credit to the 43, so it's now a Sept 17th 43 short straddle with a cost basis of 3.88.

Transaction en cours:

Took a smidge of realized gain here and rolled out to the Oct 42 short straddle for a .90/contract credit; basically, now a "core" position that I'll roll to ATM at 10% max or side approaching worthless. Scratch at 4.78 versus 4.38 for current straddle value (i.e., it's up .40 per contract). It seems quite far out in time, but I wanted 10% of max to represent something "meaningful" ... .

Trade fermée manuellement:

Yesterday, rolled out to Dec for a realized gain and for a 1.64/contract credit; covering today for a 5.63 debit: 4.78 + 1.64 - 5.63 = .79 ($79) profit per contract. Will re-up with a Sept set-up next week and proceed to lather, rinse, repeat.