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2019 Trades

xhb: 12.03.18 – 03.08.19

ETF | Home Builder Fund | Status: Closed

Adjustment #2

View original trade
12.20.18
With the market down yet another 2%+ I needed to find ways reduce my
and my XHB position has been taking it on the chin these past couple days. I’ve pulled about 60% of the value out of this
so I’m
two strikes to the 32 call, leaving me with a $4.00-wide
This is a really crappy play for this position in particular, but necessary for my overall portfolio. I’ve collected a total of $3.76 in credit which means I’m locking in loss. At best, I can lose $0.24 as the position stands. But If the
price stays above $32, and below $36, I can make over $100 back. If my deltas get back to zero, I may consider uninverting or closing altogether and selling a
so I can continue to make money back as it
I also plan to
as soon as the Feb
become available. The credit may put me back in a position where I can actually turn a profit or at least
the position.

Risk Profile:

(Not to scale)
Figure 3

Strategy: Roll Down Call

btc 1 jan 18 34 call
sto 1 jan 18 32 call
Fill Price: $0.80 credit

Position Analysis

U/L Price: $32.17
IV: 34.7%
IVR: 44.6
Liquidity: 4/4
Position: Inverted 32/36 Strangle
POP: 0%
Cost Basis: $3.76
Risk: Undefined
BPR: $650
Max Profit: -$0.24
Max Loss: Unlimited
Target P/L: Scratch
Extrinsic Value: $116.00
Net Delta: 32.70
Net Theta: 3.007

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2019 Trades
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