

Financial shares have rallied hard over the last few weeks, but are showing signs of a temporary top. For this trade, I'm looking to buy shares of FAZ, a financial 3X Bear ETF, and sell Apr 20 calls against the position. FAZ closed Friday at $19.95 per share. The Apr 20 calls are going for roughly $4.20 ea.
If FAZ closes at or above $20 on Apr 17th, this position will return approximately 21% on capital. My breakeven point is $15.76 at expiration.
I'll exit this trade if FAZ closes below $17.50 anytime between now and expiration. The prior swing low is $18.07.

