Opening (IRA): USO May 16th -75C/October 17th 45C LCD*

3 Nis

... for a 26.25 debit.

Comments: Buying the back month 90 delta and selling the front month strike that pays for all of the extrinsic in the long. (The long call is shown at a higher strike so that it fits on the chart).

Metrics:

Buying Power Effect: 26.25
Break Even: 71.25
Max Profit: 3.75
ROC at Max: 14.3%
50% Max: 1.88
ROC at 50%: 7.2%

Will generally look to take profit at 50% max and/or roll out short call at 50% max to reduce down side break even.

* -- Long call diagonal.

5 Nis

İşlem elle kapatılmış

Posting the rest of my Friday losers ... . Closed for a 22.19 credit; 4.06 loser.