With EWW IV Rank at 57, I sold the 54/50 Strangle (30 Delta) that expires in February, to take advantage of the high .
30 Days to Expiration (2/16/2018)
Sold the 54 CAll
Sold the 50 PUTS
Credit receives $1.10 each
Max profit $110.00 for each contract
Probability of profit 61%
I still wanted to be inside the expected move, so I rolled up and out both calls and puts. This is somewhat risky, and I could be whipsaw, but I am just playing the probabilities that it will stay inside that expected move most of the time.
The roll was:
Buy to close the Feb 50 Put
Buy to close the Feb 54 Call
Sell to open the Mar 52 Put
Sell to open the Mar 56 Call
Credit received for the roll $0.30
Now my total credit received is $1.40
Will close the trade at $0.85