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closed Positions

xli: 02.25.20 – 05.15.20

ETF | Industrial Fund | Status: Closed

Opening Trade

02.25.20
After two massive selloffs in a row,
(/VX) have exploded to about the 23 handle. This means that
are more expensive than they've been in a very long time – this number has been down around 15 and below for months. In order to take advantage of these heightened
levels, I've decided to
yet another
this time in XLI – the industrial
Strangles are extremely versatile and allow for plenty of defensive tactics in the event that the trade comes back to haunt me. If
continues to expand, that will certainly be the case. However, should volatility contract from this point, I expect to benefit greatly from the drop in premium levels. I collected $2.57 for this trade, and my profit target is about 50% of that which would be about $1.28.

Risk Profile:

Figure 1

Strategy: Short APR 17 74/82 Strangle

sto 1 apr 17 74 put
sto 1 apr 17 82 call
Fill Price: $2.57 credit

Position Analysis

U/L Price: $78.34
IV: 26.2%
IVR: 108.0
Liquidity: 4/4
Position: Short APR 17 74/82 Strangle
POP: 61%
Cost Basis: $2.57
Risk: Undefined
BPR: $1210
Max Profit: $2.57
Max Loss: unlimited
Target P/L: $1.28
Break Even(s): $71.43, $84.57
Extrinsic Value: $257.00
Net Delta: -2.04
Net Theta: 4.606

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