Rationale:
-52DTE so optimal time to continue adding June expiration to the portfolio
-STZ was the only name coming up on watchlist with somewhat elevated IV WITHOUT earnings coming up
-note STZ has been consolidating after making an up move so could break in either direction
-given IV was still low on absolute basis (sub 50%), I sold 15 delta on each side (should really only go 20-30 delta on each side when IV is 50%+)
Recap:
IVR=41%
IV/HV=
Key corporate events (earnings, dividend, investor day, etc.)= none
How much risk should/did I take? $480 total risk (2x credit, 3% of account); appropriate risk
Trade Planning
-structure: strangle
-major support: 200 (should be managing at this point if not done already
-add point: NA
-stop loss: 2x credit
-take profit price / risk-reduction plan: 30% of max profit
2019-05-02 20:11:04
-closed out position as I need to de-risk and simply trading given I have small account and need to manage net liq; also switching to cash account so can't do naked options
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-05-01 11:45:43 | JUN21 19 230 CALL | sell | $0.9700 | short |
2019-05-01 11:45:43 | JUN21 19 195 PUT | sell | $1.430 | short |
2019-05-02 14:23:31 | JUN21 19 230 CALL | buy | $0.5900 | 0 |
2019-05-02 14:23:31 | JUN21 19 195 PUT | buy | $2.140 | 0 |
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