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RUT at 1622
I’m going to scale down to 2 Tiers and wait for the market to settle in.
Order Ticket Type Asset Duration Strike C/P STC RUT 20MAR 1730 PUT BTC X2 RUT 20MAR 1680 PUT STC RUT 20MAR 1610 PUT Total Credit: 4.20 SPX at 3228
I’m going to close out the Bear Call part of this trade.
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 20MAR 3460 CALL Buy To Close SPX 20MAR 3450 CALL Total Debit: 0.45 SPX at 3233
I’m going to put on a bullish trade in SPX with 21 days until expiration.
I’m buying a broken wing put butterfly with a 50 point wing on the downside and a 25 point wing on the upside.
This trade will result in NET credit at entry and as long as SPX remains above upper long put, all options will decay to 0.
My goal is to capture as much of the premium as possible or close IF/WHEN SPX breaks below breakeven at expiration.
Here’s what this trade looks like:
Order Ticket Type Asset Duration Strike C/P BTO SPX 21FEB 3125 PUT STO X2 SPX 21FEB 3100 PUT BTO SPX 21FEB 3050 PUT Total Credit: 1.80 SPX at 3304
I’m going to close out this trade at about 75% of credit received.
Order Ticket Type Asset Duration Strike C/P STC SPX 21FEB 3125 PUT BTC X2 SPX 21FEB 3100 PUT STC SPX 21FEB 3050 PUT Total Debit: 0.45 RUT at 1680.72
I’m going to add a Broken Wing Put Butterfly to make it a full size position (3 Tiers). I will make further adjustments when RUT trades above 1710 level.
Order Ticket Type Asset Duration Strike C/P BTO RUT 20MAR 1700 PUT STO X2 RUT 20MAR 1680 PUT BTO RUT 20MAR 1610 PUT Total Credit: 9.75 BA at 335
I’m selling an OTM put with an implied POP around 85%
I’m looking to capture 50-80% of credit and I will make adjustments when BA trades at 315
Order Ticket Type Asset Duration Strike C/P Sell To Open BA 21FEB 310 PUT Total Credit: 1.46 SPX at 3345
I’m going to sell an Iron Condor with an implied POP around 80%. I want to sell credit spreads that pay close to an equal amount of credit.
My goal is to capture 50-80% of credit and I will stop out when this trade shows a loss about 1.25X credit.Credit: 1.80
Margin: 8.20
Return: 21.95%
POP: 82%
STOP: 4.00 debit
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 27MAR 3510 Call Sell To Open SPX 27MAR 3500 Call Sell To Open SPX 27MAR 3120 Put Buy To Open SPX 27MAR 3110 Put Total Credit: 1.80 SPX at 3341
I’m going to close the remaining put spread with 43 days to go.
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 20MAR 3050 PUT Sell To Close SPX 20MAR 3040 PUT Total Debit: 0.55 BA at 344
I’m buying to close 310 Put at 65% of max profit.
Order Ticket Type Asset Duration Strike C/P Buy To Close BA 21FEB 310 PUT Total Debit: 0.51 NFLX AT 371
I’m selling an OTM put with an implied POP around 80%
I will take profits at 50-80% of max profit or make adjustments when NFLX trades below 360
Order Ticket Type Asset Duration Strike C/P Sell To Open NFLX 21FEB 355 PUT Total Credit: 2.60 NFLX at 375.94
I’m going to close out this trade at 42% of max profit in just 1 day.
Order Ticket Type Asset Duration Strike C/P Buy To Close NFLX 21FEB 355 PUT Total Debit: 1.50 RUT at 1689
I’m going to put on a Scaling Income Butterfly with 63 days until expiration.
Planned Capital: 10,000
Profit Target: 10-15%
Stop Loss: -15%Trade Plan: Add Tier 2 when RUT trades above 1710 and add Tier 3 when RUT trades above 1730. Start rolling Tier 1 when RUT trades above 1740.
Order Ticket Type Asset Duration Strike C/P BTO RUT 17APR 1720 PUT STO X2 RUT 17APR 1670 PUT BTO RUT 17APR 1600 PUT Total Debit: 5.25 SPX at 3372
We’re going to put on an Iron Condor with 59 days until expiration. We’re going to go a bit wider than our usual width of spreads and use 25 point spread instead of 10.
We’re looking to collect around 2.00 per each spread. Collecting $400 credit per Iron Condor will require $2,100 of margin or Buying Power Reduction.
Our profit target is 50-80% of credit and we’ll set Max Allowable Loss (MAL) at 1X-1.5X of the initial credit. This means that at any time if this trade is down $400-$600 per 1 contract – it’s time to stop out and move on.
Credit: $400
Margin: $2,100
Return On Risk: 19.04%
POP: 85%
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 17APR 3575 Call Sell To Open SPX 17APR 3550 Call Sell To Open SPX 17APR 3125 Put Buy To Open SPX 17APR 3100 Put Total Credit: 3.85 – 4.00 RUT at 1696
I’m going to make an adjustment as RUT is starting to move towards the edge of the profit tent.
My NET delta before the adjustment is -20. I’m looking to reduce my directional exposure while keeping the price near or inside the tent.
I’m going to add a Calendar spread, selling 20MAR expiration and buying 31MAR expiration at 1720 strike. Each calendar spread will add about +2.5 delta to my NET delta. Adding (6) calendars will reduce my NET delta from -20 to -5.
Here’s what the Risk Profile will look like after the adjustment:
Order Ticket Type Asset Duration Strike C/P Sell To Open RUT 20MAR 1720 CALL Buy To Open RUT 31MAR 720 CALL Total Debit: 4.40 RUT at 1628
This trade is showing P/L around -15% ROR and the market is becoming more volatile. I believe we’ll see more wild swings and I’d rather stop out here and follow the trade plan.
I’m going to start to work towards unwinding this trade by closing OTM Call Calendar first.
Order Ticket Type Asset Duration Strike C/P Buy To Close RUT 20MAR 1720 CALL Sell To Close RUT 31MAR 1720 CALL Total Credit: 2.50
