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2019 Trades

xli: 08.26.19 – 10.04.19

ETF | Industrial Fund | Status: Closed

Adjustment #1

View original trade
09.12.19
XLI has rallied five and a half dollars since I put this trade on. It's now
my
so, needless to say, it is not my favorite child as of late. What makes matters tough is the very low
that's resulted from the rally. With an
barely above 10, the
has totally dried up. I tried to hold out as long as possible before defending, but the time has come to take some action. I decided to
my
to the farthest
as I could muster. This gives me a tiny bit more premium in case XLI continues to move higher, but leaves me a fair amount of
so that I can hopefully make some decent money back if XLI sells off. At this point I want XLI to stay where it is or revert back down slowly. If XLI sells off too quickly, volatility expansion will likely diminish delta-driven profits – hopefully it won't overshadow them.

Risk Profile:

(Not to scale)
Figure 2

Strategy: Roll Up Put

btc 1 oct 18 65 put
sto 1 oct 18 75 put
Fill Price: $0.42 credit

Position Analysis

U/L Price: $79.02
IV: 15.9%
IVR: 10.8
Liquidity: 3/4
Position: Short OCT 75/78 Strangle
POP: 49%
Cost Basis: $1.43
Risk: Undefined
BPR: $1680
Max Profit: $1.43
Max Loss: unlimited
Target P/L: $0.50
Break Even(s): $73.57, $79.43
Extrinsic Value: $133.00
Net Delta: -44.96
Net Theta: 3.306

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2019 Trades
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