... for a 26.21 debit.
Comments: 42.2 IV/32.8% 30-day IV. Before I went to take a nap, added a "rung" on weakness here to my position, buying a one lot and selling a -75 call against. I already have a February monied on (See Post Below), so went out to March for this setup.
The call IV at the 27 strike: 37.32%. The put side at the same strike: 29.49% with...
... for 75.00 per Johnny.
Notes: Looking to take short term advantage of this beat-down, betting that it will stay above $80/share through expiry. Max profit of 5.00, but may take it off early if it proves too much for my delicate sensibilities.
Generally speaking, covered calls are set up by acquiring stock and then selling calls against, not only for downside protection, but also to reduce cost basis. Most of the time, you want to sell out of the money calls against, since short calls generally have the effect of capping off gains if you're not inclined to roll them out for duration and strike...
