TRADE IDEA: RSX AUG 17TH 17 LONG/MAY 25TH 21.5 SHORT PUT

2018年4月12日

Fading the down move here with a put diagonal ... .

Metrics:

Max Loss on Setup: 350/contract
Max Profit on Setup: 100/contract
Break Even: 20.50

Notes: The natural alternatives would be to sell the 30 delta short put or go synthetic covered call via a 70 delta shortie ... . I'm looking for a 3.50 fill, but the setup may need some adjustment at NY open, since after hours quotes are showing a wide bid/ask ... .

2018年4月12日

注释

Ooops. This is a call diagonal, not a put diagonal. (Senior moment).

2018年4月17日

注释

The liquidity and expiry availability in this underlying turned out to be "not that hot" when I looked at it during the NY session. Currently, for example, there is no June monthly; I'd like a September, but there isn't one; I'd have to go out to November for the back month, and the bid/ask ... ewwwww. The Nov 16th 18 long/June 1st 20.5 short is bid 0.00/ask .37/mid .19 ... . Looked good on paper.