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...
XLE started to bounce back from bottom. I expect it to be going up and then start side way. So I would setup a Jade Lizard position. Position: Sell 1 June 65 Put Sell 1 June 68.5/69.5 Call Spread Total Premium: 1.04$ Break Even: $63.96, Profit area: $63.96 $69.54. No upside risk. Pop %: 84%
Sold the 36/37 Call credit spread and sold the 34 Put eliminating the risk to the upside. In total received $1.06. 72% probability of profit.