OPENING: XLE JULY 20TH 67 LONG/APRIL 27TH 71 SHORT CALL DIAGONAL... for a 3.14/contract debit (78.5% width of spread).
Another neutral to bullish assumption setup with plenty of time to reduce cost basis. Currently, it looks like you could get a better fill than I did (mid currently at 3.00, 75% of the width of the spread, which is what you're looking for in these setups).
Here, I'm shooting for 20% of what I put the trade on for.
Metrics:
Max Profit: .86/contract*
Max Loss: 3.14/contract
Theta: .37
Delta: 32.33
* -- Assuming no rolls of the short call and finish of the underlying above the short call strike at expiry.
** -- Assuming no rolls of the short call and finish of the underlying below the long call strike at expiry.
