Opening (IRA): USO December 20th 65 Covered Call
Updated
... for a 62.41 break even.
Comments: High IVR/IV (79/51) plus weakness. Adding a rung to my USO position out in December at break evens better than what I currently have on. Selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 62.41
Max Profit: 2.59
ROC at Max: 4.15%
50% Max: 1.30
ROC at 50% Max: 2.07%
Will generally look to take profit at 50% max; look to roll out the short call on test.
Comments: High IVR/IV (79/51) plus weakness. Adding a rung to my USO position out in December at break evens better than what I currently have on. Selling the -75 delta call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 62.41
Max Profit: 2.59
ROC at Max: 4.15%
50% Max: 1.30
ROC at 50% Max: 2.07%
Will generally look to take profit at 50% max; look to roll out the short call on test.
Trade closed: target reached
Hit 50% max at open, closing for a 63.71 credit. 1.30 ($130) profit. Still have the Dec 20th 63's and 69's on. Counterintuitive that the 63 didn't hit first, but it's deeper ITM and somewhat illiquid ... .
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.