Strategy: Put Ratio Spread (Buy 1, Sell 2)
Expiration: 16 OCT 26 (53 DTE)
Strike Price: Buy 1 130, Sell 2 125
My Execution Fill: $4.73
๐ Quantitative Metrics at Entry
Delta (ฮ): 0.24
Implied Volatility (IV): 58%
IV Rank (IVR): -
Probability of Profit (POP): ~72%
๐ ๏ธ Structural Management Targets
Profit Objective: 50% of max potential profit (Not premium)
Defensive Plan: If the underlying breaches the 125 strike, our rule dictates closing the debit put spread and rolling out the remaining short put in duration to the next liquid cycle for a net credit, or cutting the position if tail-risk thresholds are exceeded.