Forum Replies Created
-
Posts
-
We’re going to put on an Iron Condor in GLD with 46 days to expiration.
IV isn’t at the highest level but after a strong move in the price of the underlying from 113, we could expect a consolidation over the next couple of weeks.
Order Ticket Type Asset Duration Strike C/P Buy To Open GLD 01MAR 19 129 Call Sell To Open GLD 01MAR 19 125 Call Sell To Open GLD 01MAR 19 120 Put Buy To Open GLD 01MAR 19 116 Put Total Credit: 1.06 Risk Profile: 
Credit: 1.06
Margin: 2.94
ROR: 36.05%
POP: 61%Note: We’ll look to capture 80% of credit before exiting this trade, if the price starts to move towards 120 or 125 we’ll look to roll this trade for additional credit.
We’re going to close this trade at 72% of credit received.
Order Ticket Type Asset Duration Strike C/P STC AMZN 01FEB 19 1850 CALL BTC X2 AMZN 01FEB 19 1800 CALL STC AMZN 01FEB 19 1770 CALL Total Debit: 0.50 Risk Profile:
SPX running into 2600 and there’s resistance around 2625. We’re going to buy an OTM call in 08FEB cycle to reduce our NET delta exposure.
Right now, our double calendar has a NET delta of -35. We’re going to pick up (1) +20 delta call to reduce our NET delta to -15.
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 08FEB 19 2675 Call Total Debit: 9.00 Risk Profile:
RUT at 1438
RVX at 21.17We’re going to put on a slightly bearish Put Butterfly in RUT with 59 days to expiration.
We want to place our short strike about 20 points below the market and buy 50 point wings to define our risk.
We also want to scale up into this trade IF/WHEN RUT trades higher. Our first adjustment will be adding another Put Butterfly at higher strikes. We’ll make this adjustment when RUT trades above 1465.
Order Ticket Type Asset Duration Strike C/P BTO RUT 15MAR 19 1470 PUT STO X2 RUT 15MAR 19 1420 PUT BTO RUT 15MAR 19 1370 PUT Total Debit: 7.70 Risk Profile: 
We’re going to close out 2480 put calendar and open 2600 call calendar, moving the tents closer to where SPX is currently trading. This position is hedged and will maintain neutral delta while increasing theta from -8 to +235
Sell To Close 2480 Put Calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 31JAN 19 2480 Put Sell To Close SPX 08FEB 19 2480 Put Total Credit: 4.50 Buy To Open 2600 Call Calendar:
Order Ticket Type Asset Duration Strike C/P Sell To Open SPX 31JAN 19 2600 Call Buy To Open SPX 08FEB 19 2600 Call Total Debit: 8.40 We’re going to continue to move ‘the tent’ closer to ATM.
We’re rolling 2550 Call Calendar that we opened on 12/28 up 50 points to 2600. This is going to cut NET delta from -15 to -9 and increase NET theta from +235 to +365
Sell To Close 2550 Call calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 31JAN 19 2550 Call Sell To Close SPX 08FEB 19 2550 Call Total Credit: 7.30 Buy To Open 2600 Call calendar:
Order Ticket Type Asset Duration Strike C/P Sell To Open SPX 31JAN 19 2600 Call Buy To Open SPX 08FEB 19 2600 Call Total Debit: 9.60 Risk Profile:
NOTE: This is a hedged Call calendar, we’re looking to start to unwind this trade in the next 5-7 days.
RUT traded to our next add point and we’re going to add another Put Butterfly, 40 points above original butterfly.
Order Ticket Type Asset Duration Strike C/P BTO RUT 15MAR 19 1510 PUT STO X2 RUT 15MAR 19 1460 PUT BTO RUT 15MAR 19 1410 PUT Total Debit: 9.30 Risk Profile:
We’re going to sell a Strangle around 15 delta on each end with 50 days to expiration. NOTE: Selling a strangle involves selling options naked. This is an undefined risk strategy and can be very risky if not sized properly. To avoid taking on undefined risk, one can look to buy further OTM options to limit risk to the width of strikes minus any credit received to enter the trade.
Order Ticket Type Asset Duration Strike C/P Sell To Open SMH 15MAR 19 105 Call Sell To Open SMH 15MAR 19 85 Put Total Credit: 1.80 Risk Profile:
We are going to unwind this trade with 15 days until expiration.
Sell To Close 2350/2400/2425 Put fly:
Order Ticket Type Asset Duration Strike C/P STC SPX 08FEB 19 2425 PUT BTC X2 SPX 08FEB 19 2400 PUT STC SPX 08FEB 19 2350 PUT Total Debit: 0.30
Buy To Close 2725/2750 Bear Call spread:Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 08FEB 19 2750 Call Buy To Close LMT 08FEB 19 2725 Call Total Debit: 2.25 Risk Profile:
SPX at 2667.
We’re going to move the 2600 Call calendar up 40 points to 2640.
Sell To Close 2600 Call Calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 31JAN 19 2600 Call Sell To Close SPX 08FEB 19 2600 Call Total Credit: 8.10 Buy To Open 2640 Call calendar:
Order Ticket Type Asset Duration Strike C/P Sell To Open SPX 31JAN 19 2640 Call Buy To Open SPX 08FEB 19 2640 Call Total Debit: 10.70 NOTE: We’re leaving the hedge on for now. This adjustment will reduce overall short delta and boost theta from +110 to +440
We’re going to manage this trade at 30% of max profit in 30% of DTE.
We’re also going to look to re-enter another trade in GLD, neutral directionally.
Order Ticket Type Asset Duration Strike C/P Sell To Close GLD 01MAR 19 129 Call Buy To Close GLD 01MAR 19 125 Call Buy To Close GLD 01MAR 19 120 Put Sell To Close GLD 01MAR 19 116 Put Total Debit: 0.76 Risk Profile:
SPX at 2637.13
We’re going to start to unwind this trade as it expires this week (front month options)
We’re going to Sell To Close 1/2 of 2640 Call calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 31JAN 19 2640 Call Sell To Close SPX 08FEB 19 2640 Call Total Credit: 13.80
We’re also going to Sell To Close 08FEB 2675 Call Hedge:
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 08FEB 19 2675 Call Total Credit: 14.00 NOTE: We’re going to monitor the rest of this position and look to exit before Friday.
XTR at 44.00 We’re going to Sell To Open a strangle with 45DTE. We’re selling options around 15 delta or closest to 1SD away. We’re looking to capture at least 50% of credit and if the underlying starts to move towards either of the short strikes we’ll make adjustments by either rolling up or down OR rolling out to next expiration.
Order Ticket Type Asset Duration Strike C/P Sell To Open XRT 15MAR 19 47 Call Sell To Open XRT 15MAR 19 40 Put Total Credit: 0.65 Risk Profile:
We’re going to exit the rest of this trade
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 31JAN 19 2640 Call Sell To Close SPX 08FEB 19 2640 Call Total Credit: 17.00 SPX moved +165 points since entry. This position is slightly profitable. We’re going to roll our long options (wings) in towards the body of this butterfly. Our goal is to collect additional credit. We’re rolling 2500 put down 30 points and 2410 up 20 points.
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 22FEB 19 2500 PUT Buy To Open SPX 22FEB 19 2470 PUT Buy To Open SPX 22FEB 19 2430 PUT Sell To Close SPX 22FEB 19 2410 PUT Total Credit: 1.40 Risk Profile:
