Post by Admin on Jan 30, 2015 21:37:39 GMT
Upcoming options trade! USO bear call
Strategy steps:
1) High IV rank >+75%
2) Lay out IV levels for upcoming week
3) Determine direction of underlying.
4) Pick strikes that is 2 or 3 IV levels away from current price
5) pick spread
6) contingent plan
*added* upcoming news ?
USO: 17.85
IV: 0.53 estimated 0.59 for +10% error room
STD: 1.88 (added 10% for error)
2) See chart
3) up
4) ideal strikes spread
19.50/20.00 spread for 10% ROC.
5) Bear call
6) contingent plan- on up movement
enter secondary spread contingent plan.
call 20.00/20.50 spread
on down movement
initiate puts spread 16.50/16.00 or better.
7) upcoming news? none
expected credit: 0.04 to 0.05
Net credit (after commissions): 2.6 to 3.6
ROC: 5% to 7%
Max loss: 46 to 47.
Strategy steps:
1) High IV rank >+75%
2) Lay out IV levels for upcoming week
3) Determine direction of underlying.
4) Pick strikes that is 2 or 3 IV levels away from current price
5) pick spread
6) contingent plan
*added* upcoming news ?
USO: 17.85
IV: 0.53 estimated 0.59 for +10% error room
STD: 1.88 (added 10% for error)
2) See chart
3) up
4) ideal strikes spread
19.50/20.00 spread for 10% ROC.
5) Bear call
6) contingent plan- on up movement
enter secondary spread contingent plan.
call 20.00/20.50 spread
on down movement
initiate puts spread 16.50/16.00 or better.
7) upcoming news? none
expected credit: 0.04 to 0.05
Net credit (after commissions): 2.6 to 3.6
ROC: 5% to 7%
Max loss: 46 to 47.