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2019 Trades

xbi: 08.02.19 – 08.16.19

ETF | Biotech Fund | Status: Closed

Opening Trade

08.02.19
XBI is a biotech
that is pretty volatile. It's heightened risk results in high
options, which allows me to sell an extra-wide
for a decent credit. It is also highly
which makes it a strong trading vehicle. I have not yet traded this product in 2019 but now that we have a little heightened volatility, I've decided to give it a shot. Since XBI's price is at the high end of my comfort zone, I made sure to go extra wide to give myself some padding in case volatility continues to expand. This trade is
neutral and should profit off of the passage of time and any volatility contraction. As usual with wide strangles, my profit target is about 50% of the max profit.

Risk Profile:

(Not to scale)
Figure 1

Strategy: Short 72/93 Strangle

sto 1 sep 20 72 put
sto 1 sep 20 93 call
Fill Price: $1.05 credit

Position Analysis

U/L Price: $83.89
IV: 30.3%
IVR: 32.8
Liquidity: 4/4
Position: Short 72/93 Strangle
POP: 78%
Cost Basis: $1.05
Risk: Undefined
BPR: $850
Max Profit: $1.05
Max Loss: unlimited
Target P/L: $0.53
Break Even(s): $70.95, $94.05
Extrinsic Value: $105.00
Net Delta: -3.59
Net Theta: 3.531

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2019 Trades
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