No risk to the upside 80% on KRE (Jade Lizard)
Updated
In the last 90 days we had a 14% down move and got rejected at the 200 EMA. We might still have more room to go to the downside, but I am betting that we are still correcting and some buyers may start to come in.
With an implied volatility rank of 34 and 50 days to expiration, I sold a Jade lizard to eliminate the risk to the upside and still have room to the downside until my break even. We collected $1.12 per contract and have 81% probability of profit, our break even is at the $47.90 level.
The trade:
50DTE
Sell the 52 Call
Buy the 53 Call
Sell the 49 Put
Prob of profit 81%
Credit Received $1.12 per contract
With an implied volatility rank of 34 and 50 days to expiration, I sold a Jade lizard to eliminate the risk to the upside and still have room to the downside until my break even. We collected $1.12 per contract and have 81% probability of profit, our break even is at the $47.90 level.
The trade:
50DTE
Sell the 52 Call
Buy the 53 Call
Sell the 49 Put
Prob of profit 81%
Credit Received $1.12 per contract
Trade closed: target reached
With 21 days to go, decided to take profit on this one and make another trade.
Related publications
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.