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Opened: KRE March 15th 39/44/50/55 Iron Condor... for a 1.68 credit. Comments: ETF IV > 35% with 30-day IV at 37.9%. Collecting 1/3rd the width of the wings of a 5-wide; 1.68 credit on BPE of 3.32; 50.6% ROC at max; 25.3% at 50% max. It was kind of a toss-up between doing this as an iron fly or as an iron condor due to the size of the underlying, so compromised, going in somewhat aggressively with the short option legs (they're camped out at the 30 delta). This will allow me to adjust the setup somewhat before having to go inverted with the short strangle aspect (now I've jinxed it). Will generally look to take profit at 50% max; adjust sides on side test.
AMEX:KRE
by NaughtyPines
Opening: TSLA Feb 16th 180/190/230/240 Iron Condor... for a 3.55 credit. Comments: Earnings announcement volatility contraction play. I ordinarily put these on right before earnings, but will probably space it out, so am putting it on today. Earnings will be announced on Wednesday, 1/24, after market close. Here, selling the 25 delta short option strikes and buying longs 10 strikes out from the shorts, resulting in 10 wide wings on which I've collected more than 1/3rd the width of the wings in credit, as well as a net delta setup that's about as delta neutral as you can get. I'm using the next available monthly here so that I've got a little time to manage the setup in the event that that the move is bigger than the options market is anticipating here (around +/- 19 handles, which would be around 225 on the call side, 190 on the put, given current price). The basic notion here is that (a) TSLA IV contracts post-earnings; and (b) it stays within the expected move. The Metrics: 3.55 credit on buying power effect of 6.45; 55.04% ROC at max; 27.52% at 50% max; delta/theta 1.00/8.02; 186.45/233.55 break evens. Since this is a defined risk setup, the BPE is the same regardless of whether you set it up in cash secured account like an IRA or on margin.
NASDAQ:TSLA
by NaughtyPines
XAU/USD ↘️ Short Trade setup ↘️Hello Everyone 🙋🏽‍♂️ OTE Premium Zone 💲 Entry Point : 2027 ✔️ Tp 2017 🔴 SL 2033 We are not responsible of any losses for anyone, our trades are profitable more for long terms and we take losses as everyone, manage your lot size as well and your SL and TP and my opinion is 0.01 lot for each 500 $. Don't forget to hit the like bottom and write a comment to support us. Follow us for more 🙋🏻‍♂️ Best Regard / EMA Trading . Disclaimer: ---------------- It's not a financial advise, As everyone we take losses sometime but for long term trading we are profitable traders, so manage your account well with SL and TP and your lot size to keep your account safe and stay in the market
OANDA:XAUUSDShort
by EMA_Trading
1
Opening: XBI Jan '25 77 Covered CallComments: This started out as an October 20th 76 short put (See Post Below) and then proceeded to crater quite massively, resulting in early, random assignment of shares. In an attempt to get my cost basis immediately within earshot of where the underlying is currently trading, I went extremely long-dated and sold the Jan '25 77 for 7.05 against my one lot, resulting in a cost basis of my original short put strike at 76 minus the 7.05 I received for the short call or 68.95 relative to today's closing price of 67.07. The Jan '25 77 short call finished the day at around 43 delta, and -- as with all my covered calls, I'll look to roll out the short call at intervals, with an eye toward keeping the short call at or above the 30 delta and/or leaving it alone if price pops back above my break even. Unfortunately, the position becomes somewhat "dead money" for a bit since the current next available expiries to roll to are limited to June '25, Dec '25, and Jan '26 (although I can certainly roll down intraexpiry if push comes to shove).
AMEX:XBILong
by NaughtyPines
Opening: SAVE January 19th 10 Covered Call... for an 8.15 debit. Comments: The IV in here is redonk (IVR 96/IV 238.6%), no doubt because the merger decision between SAVE and JBLU is in a court room, with the trial scheduled to finish up at year end and a ruling to follow thereafter. At the moment, the buyout proposal is for $33.50/share and/or a $29.80 "Deal-Through Price." While most are probably trying to arbitrage SAVE for the difference between current price and the potential buy-out amount, I'm looking to make money even if the buyout doesn't go through with a cost basis below SAVE's 52-week low and/or the judge takes a bit of time to mull over whether to impose conditions on the buy out (at which point I hope to be out of the trade). Naturally, if the deal does go through, and price jumps to the buyout price, I'll be pissed that I didn't go just Plain Jane long call ... . Metrics: Max Profit: 1.85 ($185)/contract Buying Power Effect: 8.15 ($815)/contract ROC as a function of BPE at Max: 22.7% ROC at 50% max: 11.3%
SLong
by NaughtyPines
Opening (IRA): IWM April 19th 165 Short Put... for a 2.10 credit. Comments: Starting to erect rungs in the second quarter (April, May, June). QQQ doesn't have an April yet, and I already have a SPY rung on out in that contract, so just doing the small caps here. Targeting the <16 delta strike paying around 1% of the strike price in credit. I'll naturally look to add in shorter duration should we get a bump in IV, but may have to dabble outside the broad market (IWM, QQQ, SPY) box to get paid something decent in shorter duration.
AMEX:IWMLong
by NaughtyPines