Opening (IRA): MU Nov 15th 95 Covered Call
Updated
... for a 92.53 debit.
Comments: Post-earnings, IV remains somewhat decent here at 45.2%. Selling the -80 delta call against long stock to emulate the metrics of a 20 delta short put, but with built-in short call defense.
Metrics:
Buying Power Effect/Break Even: 92.53/share
Max Profit: 2.47
ROC at Max: 2.67%
50% Max: 1.24
ROC at 50% Max: 1.33%
Will generally look to take profit at 50% max, roll out the short call on test.
Comments: Post-earnings, IV remains somewhat decent here at 45.2%. Selling the -80 delta call against long stock to emulate the metrics of a 20 delta short put, but with built-in short call defense.
Metrics:
Buying Power Effect/Break Even: 92.53/share
Max Profit: 2.47
ROC at Max: 2.67%
50% Max: 1.24
ROC at 50% Max: 1.33%
Will generally look to take profit at 50% max, roll out the short call on test.
Trade closed: target reached
Hit 50% max today, closing for a 93.77 credit; 1.24 ($124) profit.
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