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2019 Trades

xlb: 03.22.19 – 05.17.19

ETF | Materials/Chemicals Fund | Status: Closed

Opening Trade

03.22.19
With today's down move in the general market, and the unusually large pop in
(compared to what we've seen previously this year), I have a hunch that we may start to see a more dramatic sell-off. Next week could be ugly, and I want some opportunity for profit to the downside. Since I did this for a small credit, this trade has no risk to the upside (just in case I'm wrong), and profits the most if the share price pins $50 at expiration ($4.42 lower than the current share price). My
is as far
as I could go while still receiving a credit for the overall trade. If the market rallies from here, I only stand to make $0.09. Max profit is $2.09 and my
is extremely low at $47.91.

Risk Profile:

(Not to scale)
Figure 1

Strategy: Short Put Ratio

sto 2 may 17 50 put
bto 1 may 17 52 put
Fill Price: $0.09 credit

Position Analysis

U/L Price: $54.42
IV: 19.9%
IVR: 32.2
Liquidity: 4/4
Position: Short 2x1 50/52 Put Ratio
POP: 95%
Cost Basis: $0.09
Risk: Undefined
BPR: $680
Max Profit: $2.09
Max Loss: $4,791
Target P/L: $1.00
Break Even(s): $47.91
Extrinsic Value: $9.00
Net Delta: 4.71
Net Theta: 0.805

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2019 Trades
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