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RUT at 1526
The markets are under pressure the last couple of trading sessions and we need to re-balance NET delta once again.
I’m going to add a Put Debit spread here. This trade has 14 days until expiration and I’m looking to be out of this trade in the next 10 days.
Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 16AUG 19 1500 PUT Sell To Close RUT 16AUG 19 1470 PUT Total Debit: 7.00 SPX at 2925
We’re going to put on a Broken Wing Put butterfly with 49 days until expiration.
This is a positive delta, positive theta trade.
We’re collecting credit to enter this trade and we’re looking to close out this trade with about 80% of the credit received.
We’re going to make adjustments on the downside WHEN/IF SPX trades below upper long put (2800 level).
Order Ticket Type Asset Duration Strike C/P BTO SPX 20SEP 19 2800 PUT STO X2 SPX 20SEP 19 2775 PUT BTO SPX 20SEP 19 2725 PUT Total Credit: 2.70 RUT at 1495
I’m going to roll 1520/1510-1500 Bull Put spread down to 1475/1450
BUY TO CLOSE 1520/1510-1500 Put spread:
Order Ticket Type Asset Duration Strike C/P BTC X 2 RUT 16AUG 16 1520 PUT STC RUT 16AUG 16 1510 PUT STC RUT 16AUG 16 1500 PUT Total Debit: 16.90 SELL TO OPEN 1475/1450 Put spread:
Order Ticket Type Asset Duration Strike C/P Sell To Open RUT 16AUG 19 1475 PUT Buy To Open RUT 16AUG 19 1450 PUT Total Credit: 7.50 Risk Profile:
RUT at 1495
I’m going to scale out of T2 butterfly (1500/1560/1610)
Order Ticket Type Asset Duration Strike C/P STC RUT 20SEP 16 1610 PUT BTC X2 RUT 20SEP 16 1560 PUT STC RUT 20SEP 16 1500 PUT Total Credit: 6.00 – 6.50 Risk Profile:
TSLA at 227.21
I’m looking to enter a short term bullish trade.
I’m selling an OTM put with an Implied Probability of Profit at around 80%.
I will look to capture 50-80% of credit and adjust when my short put’s delta turns 40-45
Order Ticket Type Asset Duration Strike C/P Sell To Open TSLA 16AUG 215 PUT Total Credit: 3.70 – 3.90 NFLX at 306
I’m going to sell an OTM put with an Implied Probability of Profit around 85%
I’m going to make adjustments when short put’s delta reaches 40 and my profit target is 50-80% of the credit received.
Order Ticket Type Asset Duration Strike C/P Sell To Open NFLX 16AUG 280 PUT Total Credit: 2.90 RUT at 1499
I’m going to Buy To Close 1 of the 2 1475/1450 Put spreads I sold yesterday.
This is going to reduce risk on the downside and remove some of the directional exposure for this trade.
Order Ticket Type Asset Duration Strike C/P Buy To Close RUT 16AUG 19 1475 PUT Sell To Close RUT 16AUG 19 1450 PUT Total Debit: 6.50 RUT at 1486
I’m going to move 1480 Put up 10 points and this will make the width of the wings equal, at 50 points from the center of this butterfly.
I will let this trade simmer until it’s a bit more clear which way RUT moves next.
Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 20SEP 1490 PUT Sell To Close RUT 20SEP 1480 PUT Total Debit: 4.30 NFLX at 310.63
I’m going to exit this trade at 40% of Max Profit in just 1 day.
Order Ticket Type Asset Duration Strike C/P Buy To Close NFLX 16AUG 280 PUT Total Debit: 1.75 TSLA at 230.41
TSLA could be managed in 1 of 2 ways:
1. Exit – take profit
2. Reduce NET delta by 2/3Right now I have -3 puts at 215
215P is a 20 delta put
my NET delta is +60 or +65
I will sell (2) 20 delta Calls
this will give me -40 delta from the calls
adding that to +60 delta to the puts, will give me NET delta +20
+60-40 = +20Order Ticket Type Asset Duration Strike C/P Sell To Open TSLA 16AUG 245 CALL Total Credit: 1.70 ***If this is too confusing, 1. Exit is the simplest thing to do
but understanding all that NET Delta math is what’s going to take trading to the next levelSHOP at 337.80
I’m looking to enter a short term bullish trade.
I’m selling an OTM put with an Implied Probability of Profit at around 80%.
I will look to capture 50-80% of credit and adjust when my short put’s delta turns 40-45
Order Ticket Type Asset Duration Strike C/P Sell To Open SHOP 16AUG 310 PUT Total Credit: 3.50 TSLA at 232.14
I’m going to exit this trade and look for a new set up.
Order Ticket Type Asset Duration Strike C/P Buy To Close TSLA 16AUG 215 PUT Total Debit: 1.75 Order Ticket Type Asset Duration Strike C/P Buy To Close TSLA 16AUG 245 CALL Total Debit: 1.75 SHOP at 357.35
I’m going to lock up this trade, a great call out by one of our members: gscience
Order Ticket Type Asset Duration Strike C/P Buy To Close SHOP 16AUG 310 PUT Total Debit: 0.65 RUT at 1497
I’m going to close out 1475/1450 Put spread.
This leaves 1560/1590 Put Debit spread that’s ITM and is worth almost it’s full profit potential of $30.00
The remaining OTM Call Calendar is worth almost 0. We’re looking at a small NET loser for this trade that expires this week.
Order Ticket Type Asset Duration Strike C/P Buy To Close RUT 16AUG 475 PUT Sell To Close RUT 16AUG 1450 PUT Total Debit: 4.30 RUT at 1492
We’re going to put on a slightly OTM Put butterfly
This trade is going to be scaled in 3 tiers
This first tier is going to be 20 points below the current price and the width of the wings is going to be 60 points on the downside and 50 points on the upside
Order Ticket Type Asset Duration Strike C/P BTO RUT 30SEP 1520 PUT STO X2 RUT 30SEP 1470 PUT BTO RUT 30SEP 1410 PUT Total Debit: 4.80 Tier2 will be added WHEN RUT trades above 1510 On the downside, we’ll make adjustments WHEN RUT trades below 1425
