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xli: 02.25.20 – 05.15.20

ETF | Industrial Fund | Status: Closed

Adjustment #10

View original trade
04.21.20
I've made a couple hundred bucks back since my last adjustment but the XLI battle continues. At this point, I've cashed out of several positions in my portfolio because
has
from its crazy highs. The market has rallied beyond belief, and I've come to like the
XLI is currently bringing to my portfolio. Because of that, I've decided to
to June and
my
This move costs me a debit but I'm paying less than the
locked between my strikes thanks to the additional $2.30 of
I'm selling in June. This improves my best case scenario from a nearly $8 loss to below a $6 loss. Still horrible, but better than it was. The position now holds over $4 of extrinsic value which I can make back through
decay as long as the share price remains between my strikes. Uninverting the strikes will also help me in the event I am forced to play more defense. I'll consider shutting this losing position down if the extrinsic value decays by about half. I'm hoping XLI's share price declines slowly down toward $55 or so. That would be about the sweet spot for this position and allow me make money back the fastest.

Risk Profile:

Figure 11

Strategy: Uninvert, Roll Out

btc 1 may 15 49 call
btc 1 may 15 63 put
sto 1 jun 19 49 put
sto 1 jun 19 63 call
Fill Price: $11.85 debit

Position Analysis

U/L Price: $60.00
IV: 50.9%
IVR: 59.2
Liquidity: 4/4
Position: Short JUN 19 49/63 Strangle
POP: 0%
Cost Basis: -$5.67
Risk: Undefined
BPR: $910
Max Profit: -$5.67
Max Loss: unlimited
Target P/L: -$7.70
Extrinsic Value: $430.00
Net Delta: -25.89
Net Theta: 6.205

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