Opening (IRA): XBI May 16th -85C/December 19th 50C LCD*

1 Nis

... for a 29.50 debit.

Comments: Adding to my XBI position at or near 52-week lows, buying the back month 90 delta and selling the front month -30 delta that pays for all of the extrinsic in the long. (The 50C is depicted at a higher strike so that it fits on the chart).

Metrics:

Buying Power Effect: 29.50
Max Profit: 5.50
ROC at Max: 18.64%
50% Max: 2.25
ROC at 50% Max: 9.37%

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

* -- Long call diagonal.

2 Nis

İşlem elle kapatılmış

Closed for a 30.00 credit; .50 ($50) profit. Still have the May 16th -87C/Oct 17th 60C on.