Opening (IRA): IBIT Jan 17th 50 Covered Call
تم تحديثه
... for a 47.76 debit.
Comments: High IV at 65.3%. Selling the -75 call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. This isn't the best entry (an understatement), but am looking at it as a starter position which I will add to, assuming I can get in at strikes/break evens better than what I currently have on.
Previously, I was working BITO due to its monthly dividend, but it suffers from "rollover risk" and BITO IV is higher on the put side than on the call, making selling puts more productive in that instrument, kind of defeating the reason why you might want to be in that instrument -- the dividends, for which you have to be in stock.
IBIT IV is higher on the call side than BITO, making covered calls more productive from a max profit standpoint. (The max of the Jan 17th 50 short put, 24 delta, is 1.77 here versus 2.24 for the monied covered call). Alas, the trade-off is ... no dividends.
Metrics:
Buying Power Effect/Break Even: 47.76/share
Max Profit: 2.24
ROC at Max: 4.70%
50% Max: 1.12
ROC at 50% Max: 2.35%
Will generally look to take profit at 50% max; roll the short call out on break of my take profit (which is (50.00 - 47.76)/2 + 47.76 or 48.88.
Comments: High IV at 65.3%. Selling the -75 call against stock to emulate the delta metrics of a 25 delta short put, but with the built-in defense of the short call. This isn't the best entry (an understatement), but am looking at it as a starter position which I will add to, assuming I can get in at strikes/break evens better than what I currently have on.
Previously, I was working BITO due to its monthly dividend, but it suffers from "rollover risk" and BITO IV is higher on the put side than on the call, making selling puts more productive in that instrument, kind of defeating the reason why you might want to be in that instrument -- the dividends, for which you have to be in stock.
IBIT IV is higher on the call side than BITO, making covered calls more productive from a max profit standpoint. (The max of the Jan 17th 50 short put, 24 delta, is 1.77 here versus 2.24 for the monied covered call). Alas, the trade-off is ... no dividends.
Metrics:
Buying Power Effect/Break Even: 47.76/share
Max Profit: 2.24
ROC at Max: 4.70%
50% Max: 1.12
ROC at 50% Max: 2.35%
Will generally look to take profit at 50% max; roll the short call out on break of my take profit (which is (50.00 - 47.76)/2 + 47.76 or 48.88.
تم إغلاق الصفقة يدويًا
Closed for a 48.72 credit; .96 ($96) profit; 2.01% ROC.
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