Just to recap that last position in ROKU again from a different perspective: what I started with, in this phase of it, was a short call and a possible
very ugly outcome if it went to the moon. What I've ended up with is a "broken-wing iron condor":
The resulting call spread, due to the high price of the long, has a max profit of -59 if ROKU stays below 140; this is actually perfectly fine, since all it does is move the B/E point of the whole trade 0.59 up from where the single naked put would have been, to 112.60. If the price
does go up before expiration, then my overall P&L on this trade goes positive at 138 or so (and that number gets revised downwards as time passes; thank you, theta.)
ROKU's current IVR/IV% are 76.4 and 100 respectively; I doubt that it can go up much higher, but if it does, this simply moves the pre-expiration positive P&L point further up (whoopee, I get to hold a bit longer.) If it goes down, which seems much more likely, that point moves down - and I go positive earlier as long the price stays within range (also likely, since decreased IV is usually correlated with increasing price.) If the price is above 120 at expiration, I'm out with a good profit; if it's below 120 but above ~112, I'm somewhere between break-even and max profit; if it's below 112, I roll (or, depending on how close I am, take assignment.) The only thing that I don't want it to do is really crash - but that's built into most of my trading anyway, and 112 is pretty close to the bottom of the recent price range.
Definitely a much happier scenario than a naked call.
