Strategy: Put Ratio Spread (Buy 1, Sell 2)
Expiration: 16 OCT 26 (52 DTE)
Strike Price: Buy 1 230, Sell 2 220
My Execution Fill: $4.15
๐ Quantitative Metrics at Entry
Delta (ฮ): 0.14
Implied Volatility (IV): 56%
IV Rank (IVR): 23
Probability of Profit (POP): ~82%
๐ ๏ธ Structural Management Targets
Profit Objective: 50% of max potential profit (Not premium)
Defensive Plan: If the underlying breaches the 220 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.