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2019 Trades

KRE: 03.19.19 – 05.14.19

ETF | Banking Fund | Status: Closed

Adjustment #2

View original trade
03.25.19
I decided to
my
today to improve my downside
and to reduce my
a bit. With this spike in
there's no sense in having so much directional risk on the trade. On top of that, KRE is pushing my overall
around a bit more than I'd like it to, so this adjustment should reduce it's impact a little.
I now have a 51
which leaves room to make some money back in a rally, protects me a little better in case of another large sell-off, and moves my downside break even down below the current share price. My upside break even still lives outside the expected move as well so, even though it kills me to roll down after such a large sell-off, I'd rather have a more neutral position than rely on directional correctness to make some money back. After such a crazy move, I'll be happy if I can
this trade and reestablish a new one.

Risk Profile:

(Not to scale)
Figure 3

Strategy: Roll Down Call

btc 1 may 17 53 call
sto 1 may 17 51 call
Fill Price: $0.62 credit

Position Analysis

U/L Price: $49.30
IV: 27.9%
IVR: 46.4
Liquidity: 4/4
Position: Short 51 Straddle
POP: 31%
Cost Basis: $2.28
Risk: Undefined
BPR: $1290
Max Profit: $2.28
Max Loss: Unlimited
Target P/L: Scratch
Break Even(s): $48.72, $53.28
Extrinsic Value: $219.00
Net Delta: 25.38
Net Theta: 3.197

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2019 Trades
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