back

closed Positions

KRE: 03.26.20 – 05.15.20

ETF | Banking Fund | Status: Closed

Adjustment #1

View original trade
04.07.20
The
in my
has decayed nicely rendering them no longer necessary. Rather than hold their risk for nothing, I spotted the opportunity to close them and sell another call ratio at lower
By leaving my original
and distancing my new strikes appropriately, I was able to completely eliminate risk to the upside and get paid to do it! The trade off is a slightly smaller max profit potential on the call side, but I also have a higher minimum profit in the range above my
- now $0.36 rather than $0.33. I actually tried to accomplish this same thing on the put side but, unfortunately, was not able to get the trade
Doing so would have eliminated my risk entirely! Maybe I'll get another chance if KRE rallies again tomorrow.
My remaining position is now a
against a risk-free
I will make a minimum of $0.36 if the share price stays abovee $29. I can make more than that if the share price is between $34 and $38, and as much as $2.36 if the share price is exactly $36 at
I can also make up to $3.36 if the share price is at $26 at expiration. Lastly, as long as the share price stays above $22.64, the trade can be profitable. For now, this is just a waiting game.

Risk Profile:

Figure 2

Strategy: Close Short Calls, Sell 34/36 Call Ratio

btc 2 may 15 41 calls
sto 2 may 15 36 calls
bto 1 may 15 34 call
Fill Price: $0.03 credit

Position Analysis

U/L Price: $33.71
IV: 70.5%
IVR: 39.9
Liquidity: 4/4
Position: Short MAY 15 26/29 Put Ratio, 34/36/38 Risk-Free Call Butterfly
POP: 87%
Cost Basis: $0.36
Risk: Undefined
BPR: $800
Max Profit: $336
Max Loss: $2264
Target P/L: $1.51
Break Even(s): $22.64
Extrinsic Value: -$10
Net Delta: 4.05
Net Theta: 2.092

back

closed Positions
Open a Tastyworks Brokerage Account