back

2019 Trades

xlk: 05.23.19 – 07.01.19

ETF | Technology Fund | Status: Closed

Opening Trade

05.23.19
There was a little market-wide surge in
near the end of the day. I used this as an opportunity to open a new position in XLK, a technology sector
This product tends to mirror the
but at a much lower price. This product is a bit larger than my usual preference however my portfolio
and
levels were low for this amount of market volatility. I also had quite a bit of
free. All of these factors have allowed me to afford the heightened risk. Still, since it is a larger product I decided to
an extra-wide
I sold the 16
and the 22 delta
for $1.31. This keeps the trade more in line with my typical size as far as
theta, and overall risk goes.
If XLK rallies or stays the same, I'm hoping to benefit from a volatility contraction. If XLK continues to drop and
my lower
it will become a $60-range product (which is closer to my typical product size) with plenty of
that I can take advantage of for defense. Looking to get out at 50% of max profit, however if I could pull a quick $0.50 out of this by way of a volatility contraction I'd be a happy camper.

Risk Profile:

(Not to scale)
Figure 1

Strategy: Short 66/77 Strangle

sto 1 jul 19 66 put
sto 1 jul 19 77 call
Fill Price: $1.31 credit

Position Analysis

U/L Price: $73.00
IV: 22.7%
IVR: 26.9
Liquidity: 4/4
Position: Short 66/77 Strangle
POP: 69%
Cost Basis: $1.31
Risk: Undefined
BPR: $1100
Max Profit: $1.31
Max Loss: unlimited
Target P/L: $0.65
Break Even(s): $64.69, $78.31
Extrinsic Value: $131.00
Net Delta: -6.13
Net Theta: 2.924

back

2019 Trades
Open a Tastyworks Brokerage Account