OPENING: FORD OCTOBER/MAY 3/5 LONG CALL DIAGONAL
Updated
... for a 1.73 debit/contract.
Metrics:
Max Loss: 173/contract
Max Profit/Return on Capital: 27/contract ; 15.6%
Break Even: 4.73/share
Notes: A small, defined risk engagement trade here in Ford. The metrics generally aren't what I'm looking for in one of these setups (25% ROC or greater), but I'm selling the front month shortie at-the-money, so that's to be expected.
Metrics:
Max Loss: 173/contract
Max Profit/Return on Capital: 27/contract ; 15.6%
Break Even: 4.73/share
Notes: A small, defined risk engagement trade here in Ford. The metrics generally aren't what I'm looking for in one of these setups (25% ROC or greater), but I'm selling the front month shortie at-the-money, so that's to be expected.
Trade active
I just couldn't settle for .27 ($27) max, so rolled the 5 short call out to June for a .19 /contract credit before earnings drop Tuesday after the close. Cost basis/max loss now: 1.54. Max Profit: .46/contract; Break Even at 4.54.Trade closed manually
Closed here for 1.93/contract, .07 short of max with 31 DTE for the front month; .39 ($39)/contract winner; 22.5% ROC. Will re-up with a June/Sept shortly, since it may still have room to run.Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.