BOT +1 DIAGONAL XLK 100 21 SEP 18/17 AUG 18 76/72 PUT @2.75
Paid 2.75 (debt is 69% of the width )
Breakeven @ expiry $73.58
-39 delta, .96 theta
Max Loss : $275
Max Profit : $126
Notes:
Opened a bearish trade here fade the recent rally and add some negative deltas to balance the portfolio.
Following another great trade idea from NaughtyPines! (link below)
Rationale:
Any number of reasons a summer 'tech-wreck' could evolve: trade war, AAPL cutting mobile parts orders from suppliers, weakening Chinese economy etc ...
The top holdings are; AAPL, MSFT, FB, GOOG, V, INTC, T, VZ, CSCO (not sure how V is a 'tech' name?)
Some fundamentals on XLK : The forward PE is near 19, and P/B ratio over 5. There's almost no yield, so it's all about the estimated earnings growth , which if revised down should get punished.
Based on a _DCF valuation model: XLK fair value around 75 by year end... based on 2019 earnings estimates and assuming 13.6% earnings growth .
For the same deltas you could short 40 shares of XLK and borrow $2850 worth of stock, but would be charged the overnight borrowing rates as well.
Paid 2.75 (debt is 69% of the width )
Breakeven @ expiry $73.58
-39 delta, .96 theta
Max Loss : $275
Max Profit : $126
Notes:
Opened a bearish trade here fade the recent rally and add some negative deltas to balance the portfolio.
Following another great trade idea from NaughtyPines! (link below)
Rationale:
Any number of reasons a summer 'tech-wreck' could evolve: trade war, AAPL cutting mobile parts orders from suppliers, weakening Chinese economy etc ...
The top holdings are; AAPL, MSFT, FB, GOOG, V, INTC, T, VZ, CSCO (not sure how V is a 'tech' name?)
Some fundamentals on XLK : The forward PE is near 19, and P/B ratio over 5. There's almost no yield, so it's all about the estimated earnings growth , which if revised down should get punished.
Based on a _DCF valuation model: XLK fair value around 75 by year end... based on 2019 earnings estimates and assuming 13.6% earnings growth .
For the same deltas you could short 40 shares of XLK and borrow $2850 worth of stock, but would be charged the overnight borrowing rates as well.
Trade closed: target reached
Closed for win today as FANGs continue to slide.... Paid 2.75 initial debt. 25% profit target was 3.43
SOLD -1 DIAGONAL XLK 100 21 SEP 18/17 AUG 18 76/72 PUT @3.50
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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.