Symbols traded today: Short Iron Flies on JPM and NKE, both 1DTE
I’ve entered short Iron Fly positions on JPM and NKE, both low-volatility stocks, using options that expire the next day. The idea behind the strategy is to capture the volatility decline as the options near expiration. I exited the next day with losses on both.
JPM short Iron Fly
| LOT: | 1 | ENTRY DATE: | 1/18/2024 |
| EXIT DATE: | 1/19/2024 | ||
| DAYS HELD: | 1 |
Entry and Exit
| METRIC | CREDIT | DEBIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Options premium | $ 1.57 | $ 2.74 | $ (1.17) | -42.7% | -15500% |
| METRIC | ENTRY | EXIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Stock price | $ 165.91 | $ 167.73 | $ (1.82) | 1.10% | 400% |
| Impllied Volatility Rate | 8.9 | 7.3 | -1.6 | ||
| Days to expiration | 1 | 0 |
The structure of the position
| STRUCTURE | STRIKE | ODDS EXPIRE OTM | DELTA | IN PRICE | OUT PRICE | NET PRICE |
| Calls | ||||||
| Long | 170.00 | 96.0% | 4 | $ (0.03) | $ 0.05 | $ 0.02 |
| Break-even | 166.57 | 83.0% | 17 | |||
| Short | 165.00 | 70.0% | 30 | $ 1.31 | $ (2.78) | $ (1.47) |
| Puts | ||||||
| Short | 165.00 | 71.0% | 29 | $ 0.31 | $ (0.02) | $ 0.29 |
| Break-even | 161.57 | 82.5% | 17.5 | |||
| Long | 160.00 | 94.0% | 6 | $ (0.02) | $ 0.01 | $ (0.01) |
| ====== | ||||||
| ` | NET TOTAL: | $ (1.17) |
Risk and Reward
| Per contract: | |
| Reward | 157.00 |
| Risk | 343.00 |
| R/R Ratio (n:1) | 2.2 |
NKE short Iron Fly
| LOT: | 1 | ENTRY DATE: | 1/18 |
| EXIT DATE: | 1/19/2024 | ||
| DAYS HELD: | 1 |
Entry and Exit
| METRIC | CREDIT | DEBIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Options premium | $ 0.84 | $ 0.87 | $ (0.03) | -3.4% | -1252% |
| METRIC | ENTRY | EXIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Stock price | $ 100.39 | $ 100.53 | $ (0.14) | 0.14% | 51% |
| Impllied Volatility Rate | 8.8 | 6.5 | -2.3 | ||
| Days to expiration | 1 | 0 |
The structure of the position
| STRUCTURE | STRIKE | ODDS EXPIRE OTM | DELTA | IN PRICE | OUT PRICE | NET PRICE |
| Calls | ||||||
| Long | 102.00 | 88.0% | 12 | $ (0.09) | $ 0.06 | $ (0.03) |
| Break-even | 100.84 | 64.0% | 37 | |||
| Short | 100.00 | 40.0% | 62 | $ 0.73 | $ (0.86) | $ (0.13) |
| Puts | ||||||
| Short | 100.00 | 60.0% | 38 | $ 0.33 | $ (0.16) | $ 0.17 |
| Break-even | 99.84 | 71.5% | 27.5 | |||
| Long | 99.00 | 83.0% | 17 | $ (0.13) | $ 0.09 | $ (0.04) |
| ====== | ||||||
| ` | NET TOTAL: | $ (0.03) |
Risk and Reward
| Per contract: | |
| Reward | 84.00 |
| Risk | 66.00 |
| R/R Ratio (n:1) | 0.8 |
By Tim Bovee, Portland, Oregon, January 18-19, 2024
Disclaimer
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.
License
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.
Tim Bovee, Private Trader 
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