Opening (IRA): IBIT January 17th 48 Covered Call
Updated
... for a 46.16 debit.
Comments: Adding to my IBIT position at a strike/break even better than what I currently have on, selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put to take advantage of call side IV skew and to have the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 46.16/share
Max Profit: 1.84
ROC at Max: 3.99%
50% Max: .92
ROC at 50% Max: 1.99%
Will generally look to take profit at 50% max/roll out short call on break even or take profit test.
Comments: Adding to my IBIT position at a strike/break even better than what I currently have on, selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put to take advantage of call side IV skew and to have the built-in defense of the short call.
Metrics:
Buying Power Effect/Break Even: 46.16/share
Max Profit: 1.84
ROC at Max: 3.99%
50% Max: .92
ROC at 50% Max: 1.99%
Will generally look to take profit at 50% max/roll out short call on break even or take profit test.
Trade closed manually
De-risking a smidge here on strength. Closing for a 46.63 credit; .47 ($47) profit. Still have the January 17th 50 covered calls on.
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