Trade Journal - BBBY, Feb 6 (short IV) [options]

Thesis
Did not pay attention to TA at all.
Stock doubled in price today, causing extreme rise in IV pricing on options. Opened a debit calendar spread to take advantage of high IV.

Discovery
Looked at trending tickers for the day.

Correlation
N/A

Entry
+2 7.00C Feb 24 @ 1.48
-1 5.00C Feb 10 @ 1.61
(12.95 fees)

Net: -$148.95

Here is a graphic which shows the expected P&L of this option spread.
optionstrat.com/IxH43VpPdEDH

評論:

Spread was not configured to correctly take advantage of short vega and was more or less a long position with limited downside. Unfortunately, price retraced 30% against me; position remains open as I intend to close it closer to the expiry date.

Of note, the short 5C is 90% profitable - it might be prudent to BTC this leg and collect profits on it, then wait for a reversal to the upside.

交易結束：達到停損點:

BTC the short leg at a small profit on that leg; the 2 contracts on the long legs lost money, net P&L is -$120.