Opening (IRA): SPY January 21st 468/June 17th 570* LPD**
... for a 98.50 debit.
Comments: A short delta hedge against a perennially long delta IRA, which remains net delta long after the addition of this setup, just less long than it was.
The back month isn't that liquid, so I no doubt gave up some to the liquidity gods getting this filled. Buying the 90 delta back month, selling the 50 delta front. Paying 98.50 for a 102-wide, it currently has a max profit metric of the difference between what I paid (98.50) and the width of the spread (102) or 3.50 ($350), but its primary purpose is to hedge off or flatten long delta in the rest of the portfolio with its delta/theta metric of -42/8.67.
I'll work it like a covered put, rolling the short put up or out on approaching worthless or look to take profit on the entire diagonal on approaching max.
* -- The long put is shown below its actual strike in order to fit it on the chart without squeezing.
** -- Long put diagonal.
Comments: A short delta hedge against a perennially long delta IRA, which remains net delta long after the addition of this setup, just less long than it was.
The back month isn't that liquid, so I no doubt gave up some to the liquidity gods getting this filled. Buying the 90 delta back month, selling the 50 delta front. Paying 98.50 for a 102-wide, it currently has a max profit metric of the difference between what I paid (98.50) and the width of the spread (102) or 3.50 ($350), but its primary purpose is to hedge off or flatten long delta in the rest of the portfolio with its delta/theta metric of -42/8.67.
I'll work it like a covered put, rolling the short put up or out on approaching worthless or look to take profit on the entire diagonal on approaching max.
* -- The long put is shown below its actual strike in order to fit it on the chart without squeezing.
** -- Long put diagonal.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, işlem veya diğer türden tavsiye veya tavsiyeler anlamına gelmez ve teşkil etmez. Kullanım Şartları'nda daha fazlasını okuyun.