Opening (IRA): XBI January 17th 92 Covered Call

12월 10일

... for a 90.47 debit.

Comments: IVR/IV isn't fantastic here at 11.1/26.3%, but there is some IV skew to take advantage of on the call side -- 31.34% at the 92 call relative to 26.62% at the 92 put.

Selling the -75 delta call against shares to emulate the delta metrics of a 25 delta short put to take advantage of the IV skew and the built-in defense of the short call. From a charting standpoint, the break even sets up nicely with the "RFK, Jr. low" in November.

Metrics:

Buying Power Effect/Break Even: 90.47
Max Profit: 1.53
ROC at Max: 1.69%
50% Max: .77
ROC at 50% Max: .85