JETS ETF bearish inclined naked calls - 16 Oct expiry
Once again I'm re-entering a JETS options trade given the low volatility. The industry still weak and I don't think we will see much upwards movement in the next month.
1 Sep when a majority of stock spiked upwards. JETS had minimal movement.
As such I sold calls at the high of a key price resistance point. The current RSI is at a high band of 66. I did not cover this options trade as I realised my covered options did not protect when volatility increased and the strike got closer. I'm coming up with ways that I can better hedge against volatility but for now, I am relying on basic TA and historical low price movements
Sold 80 Calls @ 0.25, Strike 22
BP block: 15k
Max gain - est $1958.05
1 Sep when a majority of stock spiked upwards. JETS had minimal movement.
As such I sold calls at the high of a key price resistance point. The current RSI is at a high band of 66. I did not cover this options trade as I realised my covered options did not protect when volatility increased and the strike got closer. I'm coming up with ways that I can better hedge against volatility but for now, I am relying on basic TA and historical low price movements
Sold 80 Calls @ 0.25, Strike 22
BP block: 15k
Max gain - est $1958.05