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2019 Trades

KRE: 07.19.19 – 08.29.19

ETF | Banking Fund | Status: Closed

Adjustment #2

View original trade
08.15.19
After yesterdays huge selloff, my KRE
has been breached. Normally, I like to wait for my
to be breached, but my overall portfolio
risk is getting a little too large and a I need to reduce. Since KRE is one of my heaviest positions in terms of delta, it only makes sense to start here. I've
my
to pick up a bit more credit, improve my downside break-even, and cut my delta exposure in half. If the market rallies, I won't make money back quite as fast, but I have a lot of other positions that would make bank on that type of move. If the market continues to sell off, this should soften the blow a tad. It's an aggressive maneuver, but my upside break even is still out past the one
mark, so I feel pretty good about it.

Risk Profile:

(Not to scale)
Figure 3

Strategy: Roll Down Call

btc 1 sep 20 55 call
sto 1 sep 20 51 call
Fill Price: $0.60 credit

Position Analysis

U/L Price: $48.61
IV: 32.9%
IVR: 63.3
Liquidity: 4/4
Position: Short 49/51 Strangle
POP: 41%
Cost Basis: $1.90
Risk: Undefined
BPR: $1060
Max Profit: $1.90
Max Loss: Unlimited
Target P/L: $0.53
Break Even(s): $47.10, $52.90
Extrinsic Value: $235.00
Net Delta: 22.47
Net Theta: 4.265

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2019 Trades
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