Opening (IRA): TGT April 17th -108C/October 17th 75C LCD*... for a 30.05 debit.
Comments: At or near a 52-week low. Buying the back month 90 delta and selling the front month strike that pays for all of the extrinsic in the long. (The 75C is shown at the 100 strike so that it fits on the chart).
Metrics:
Buying Power Effect: 30.05
Break Even: 105.05
Max Profit: 2.95
ROC at Max: 9.82%
50% Max: 1.48
ROC at 50% Max: 4.91%
Will generally look to take profit at 50% max and/or roll the short call at 50% max to lower my downside break even.
* -- Long Call Diagonal.