做多

OPENING: NIO JUNE 21ST 9 SHORT STRADDLE

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... for a 3.08/contact credit.

Metrics:

Max Profit: 308/contract
Max Loss/Buying Power Effect: Undefined; ~180/contract (on margin)
Break Evens: 5.92/12.08
Delta: 19.79
Theta: .99

Notes: A small bullish assumption play in a small underlying with high 30-day implied at 77.4%. Going out farther than usual in time because it won't tie up much buying power in the process. Plus, who can resist a credit that exceeds buying power effect, particularly in a now sub-15 VIX environment. Will look to take profit at 25% max.

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Taking a delta-centric approach to this trade. With this up move, the long delta of the setup rapidly disappeared and skewed out to -40 or so. Rolling out to the July 10 short straddle for a .39/contract credit to keep delta within +/- 30. Scratch at 3.47 with break evens at 6.53/13.47.

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Yeesh. Kind of just imploded post-earnings. Here, I'm waiting for the short call to approach worthless before considering rolling out in time, although I'm also fine with someone exercising on me early so that I can proceed to just work the short call end of the stick ... .

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After looking at all my possible options, decided to roll the July 10 short straddle all the way out to January for an .86/contract credit. Scratch at 4.33/contract; cost basis of 5.67/share if assigned on the 10 short put with an upside break even of 14.33/share (I don't think that's going to be happening any time soon). This also has the effect of cutting the net delta of the position in half (it's now about 33 long).

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Trapped in this trade ... like a rat. Lol. Inverting here to cut net delta: Rolling the 10 short call down to the 7 short call for a realized gain and .25/contract credit. Scratch at 4.58. A 3-wide inversion, the most I can make on this trade "as is" is 1.58, which would require a finish at the mid point between 7 and 10. Cost basis of 5.42/share if assigned on the 10 shortie.

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Pulled off the 7 short call for .05; cost basis of 5.47/share if assigned on the 10 shortie. Will look to add the short call back in on a bounce or just take assignment on the 10 and then proceed to sell calls against ... .

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Amazed that I haven't been randomly assigned yet ... . In any event, selling the February 5.5 short call against for .25 on this up move. Cost basis of 5.22. On assignment, it'll basically be a February 5.5 covered call ... .