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SHOP at 327
I’m going to put on a NEUTRAL trade with 11 days to expiration.
I’m selling an OTM PUT at 13 delta and an OTM CALL at 10 delta.
My profit target is 50-80% of credit and I will adjust below 300 or above 360.
Order Ticket Type Asset Duration Strike C/P Sell To Open SHOP 18OCT 365 CALL Sell To Open SHOP 18OCT 295 PUT Total Credit: 3.55 SHOP at 315
I’m going to Buy To Close 365 Call, leaving 295 Put open.
Order Ticket Type Asset Duration Strike C/P Buy To Close SHOP 18OCT 365 CALL Total Debit: 0.35 RUT at 1517
I’m going to add a Put Butterfly centered at 1490 with a 70 point wing on the downside and a 50 point wing on the upside.
This will complete the scale in protocol and I will initiate the roll sequence when RUT crosses 1540.
Order Ticket Type Asset Duration Strike C/P BTO RUT 15NOV 1540 PUT STO X2 RUT 15NOV 1490 PUT BTO RUT 15NOV 1420 PUT Total Debit: 4.80 SHOP at 338
We’re taking the rest of this trade off here.
Order Ticket Type Asset Duration Strike C/P Buy To Close SHOP 18OCT 295 PUT Total Debit: 0.35 SHOP at 342
We’re going to put on a NEUTRAL trade with 11 days to expiration.
Selling 10 delta call and 12 delta put, collecting around 3.30 per 1 contract.
I will aim to capture 50-80% of credit and make adjustments below 315 or above 370
Order Ticket Type Asset Duration Strike C/P Sell To Open SHOP 25OCT 380 CALL Sell To Open SHOP 25OCT 310 PUT Total Credit: 3.30 RUT AT 1504
We’re going to unwind this trade (17DTE)
We have 3 parts in this trade:
1. 1440 Put Calendar that we used to hedge (https://mrtoptick.com/forums/topic/rut-31oct-broken-wing-butterfly/#post-16096)
2. 1450/1520/1570 Put Butterfly (https://mrtoptick.com/forums/topic/rut-31oct-broken-wing-butterfly/#post-15916)
3. 1470/1540/1590 Put Butterfly (https://mrtoptick.com/forums/topic/rut-31oct-broken-wing-butterfly/#post-15921)
Here’s what this trade looks like now:
Closing orders are based on current MID prices:
Order Ticket Type Asset Duration Strike C/P Buy To Close RUT 31OCT 1440 PUT Sell To Close RUT 08NOV 1440 PUT Total Credit: 4.00 Order Ticket Type Asset Duration Strike C/P STC RUT 31OCT 1570 PUT BTC X2 RUT 31OCT 1520 PUT STC RUT 31OCT 1450 PUT Total Credit: 13.60 Order Ticket Type Asset Duration Strike C/P STC RUT 31OCT 1590 PUT BTC X2 RUT 31OCT 1540 PUT STC RUT 31OCT 1470 PUT Total Credit: 12.40 SPX at 3001
We’re going to leg in into an Iron Condor using a Put Credit spread first.
I am looking for a 10 point wide credit spread that pays between 0.90 and 1.00 credit per spread.
I will look to either stop out of this trade below 2900 or add a Call credit spread to complete this Iron Condor above 3040
Order Ticket Type Asset Duration Strike C/P Sell To Open SPX 13DEC 2760 PUT Buy To Open SPX 13DEC 2750 PUT Total Credit: 0.90 – 1.00 RUT at 1521
I’m going to remove the lowest of 3 butterflies. This trade is showing 10% ROR fully scaled and I’d like to work towards unwinding this position.
Order Ticket Type Asset Duration Strike C/P STC RUT 15NOV 1530 PUT BTC X2 RUT 15NOV 1470 PUT STC RUT 15NOV 1400 PUT Total Credit: 10.00 RUT at 1536
I’m going to add an OTM Call Calendar to re-balance this trade. I covered the HOW to size this hedge in the chat. Here’s the recap:
RUT is moving towards outside of the tent
We know that most decay happens inside of the tent because options closer to ATM have the highest THETA componentOur goal is to move the tent over to cover the area where we think RUT is going to be trading over the near term
Now, this position is currently NET -15 delta
I want to keep my delta NEUTRAL or close to 0 after the adjustment
I am looking to add an OTM Call Calendar that will take my NET delta close to 0
15NOV/29NOV 1570 Calendar is about +4 Delta each
If I do (4) of these calendars, this should add about +16 delta to my current -15 delta and take my NET delta to +1
Order Ticket Type Asset Duration Strike C/P Sell To Open RUT 15NOV 1570 CALL Buy To Open RUT 29NOV 1570 CALL Total Debit: 5.80 – 6.00 SHOP at 330
I’m going to BUY TO CLOSE 380 Calls
Order Ticket Type Asset Duration Strike C/P Buy To Close SHOP 25OCT 380 CALL Total Debit: 0.20 RUT at 1538
We’re going to scale RUT 20DEC Broken Wing Butterfly. We’ll cover details in this video:
Order Ticket Type Asset Duration Strike C/P BTO RUT 20DEC 1570 PUT STO X2 RUT 20DEC 1520 PUT BTO RUT 20DEC 1450 PUT Total Debit: 4.00 Trade Plan:
UPSIDE
Enter 1450/1520/1570
Add Tier 2 above 1550-1560
Add Tier 3 above 1570-1580
Start roll sequence above 1590DOWNSIDE
Add ATM Butterfly at 1470-1480PROFIT TARGET: 10-15%ROR
STOP LOSS: -15%ROR (fully scaled)SHOP at 313
We’re going to roll 310 Put down and out
Order Ticket Type Asset Duration Strike C/P Buy To Close SHOP 25OCT 310 PUT Sell To Open SHOP 01NOV 290 PUT Total Credit: 0.40 – 0.50 RUT at 1550
We’re adding Tier 2
Order Ticket Type Asset Duration Strike C/P BTO RUT 20DEC 1600 PUT STO X2 RUT 20DEC 1540 PUT BTO RUT 20DEC 1470 PUT Total Debit: 11.00 SHOP at 297.30
We’re going to roll 290 Put down and out
Order Ticket Type Asset Duration Strike C/P Buy To Close SHOP 01NOV 290 PUT Sell To Open SHOP 15NOV 285 PUT Total Credit: 0.90 SHOP AT 292
I’m going to add a 285/290 STRANGLE in 15NOV expiration. This will reduce NET delta by 50% and boost theta by 200%
Order Ticket Type Asset Duration Strike C/P Sell To Open SHOP 15NOV 290 CALL Sell To Open SHOP 15NOV 285 PUT Total Credit: 36.30 -
This reply was modified 6 years, 6 months ago by
Igor.
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This reply was modified 6 years, 6 months ago by
