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