58% probability trade on KRE (Strangle)
Neutral trade on KRE to try and take advantage of what I think it would be two sided action between buyers and sellers. With a Implied Volatility Rank of 33, is still decent to sell a Strangle (53/57).
We make money as long as the price stays between 58.77 and 51.23 in the next 49 days, so we have a buffer of around 7% up or down. This gives us a probability of profit of 58% at expiration, and 77% if we manage early (which is always the plan).
The trade:
Sell AUG18 53 PUT
Sell AUG18 57 CALL
Sold it for $1.75 per contract
We make money as long as the price stays between 58.77 and 51.23 in the next 49 days, so we have a buffer of around 7% up or down. This gives us a probability of profit of 58% at expiration, and 77% if we manage early (which is always the plan).
The trade:
Sell AUG18 53 PUT
Sell AUG18 57 CALL
Sold it for $1.75 per contract
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