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I’m going to Sell To Close Tier 1 of this butterfly:
Order Ticket Type Asset Duration Strike C/P Sell To Close RUT 31 JAN 18 1520 Put Buy To Close RUT 31 JAN 18 1490 Put Sell To Close RUT 31 JAN 18 1440 Put Total Credit: $0.60 P/L graph:
I’m going to Sell To Close Tier 2
Order Ticket Type Asset Duration Strike C/P Sell To Close RUT 31 JAN 18 1540 Put Buy To Close RUT 31 JAN 18 1510 Put Sell To Close RUT 31 JAN 18 1460 Put Total Credit: $1.20 P/L graph:
We are looking to put on an Unbalanced Iron Condor.
An Unbalanced Iron Condor means that there are more spreads on either side of the trade than the other.
In this trade, we’re looking to sell 2 put spreads for every 1 call spread.Order Ticket Type Size Asset Duration Strike C/P Buy To Open Half Size SPX 28 FEB 18 2860 Call Sell To Open Half Size SPX 28 FEB 18 2850 Call Sell To Open Full Size SPX 28 FEB 18 2660 Put Buy To Open Full Size SPX 28 FEB 18 2650 Put Total Credit: $2.60 In this trade, we’re selling 2 of 2660/2650 Bull Put spreads for every 1 of 2850/2860 Bear Call spreads. This is what this trade looks like:
We are going to adjust this trade on the upside with SPX trading around 2800. We are looking to take off 2850/2860 Call spread and roll it higher and add size to be equal to the size of the put spreads at that point.
On the downside, we’re going to make adjustments with SPX trading around 2720. Our goal of the downside adjustment will be to cut NET delta by 2/3.
HD is trading at 197.84
We’re adding an ATM Iron Butterfly, centered around 197.50 strike.
Order Ticket Type Asset Duration Strike C/P Buy To Open HD 02 FEB 18 207.5 Call Sell To Open HD 02 FEB 18 197.5 Call Sell To Open HD 02 FEB 18 197.5 Put Buy To Open HD 02 FEB 18 187.5 Put Total Credit: $5.30 P/L graph:
SPX trading at 2782.
I’m going to close out 2770/2780 Bear Call spread and any hedge that was a part of this trade
Buy To Close 2770/2780 Bear Call spread:
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 02 FEB 18 2770 Call Sell To Close SPX 02 FEB 18 2780 Call Total Debit: $5.90 Sell To Close 2780 Call hedge:
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 02 FEB 18 2780 Call Total Credit: $24.20 P/L graph:
SPX at 2784.53
VIX at 12.20 (yes that is 2 points above 10!)I’m looking to sell an Iron Condor in 16MAR 18 expiration cycle with 57 days to expiration.
I am looking to sell a Bear Call spread that pays close to .85c credit and a Bull Put spread that pays around .85c as well, for a total credit of 1.70 or higher. I want to keep my credit fairly balanced between both spreads. For example, I dont want to see 1.20 credit for one side and .50c for the other. I want to keep credits as close to .80-.90 per side.
I’m selling:
- 2905/2915 Call spread
- 2645/2635 Put spread
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 16 MAR 18 2915 Call Sell To Open SPX 16 MAR 18 2905 Call Sell To Open SPX 16 MAR 18 2645 Put Buy To Open SPX 16 MAR 18 2635 Put Total Credit: $1.70 – $1.80 Risk Management: I will use OTM options to hedge this Iron Condor when 2905 Call’s delta reaches 20 and 2645 Put’s delta reaches 25.
Price levels for adjustments: 2825 and 2730P/L graph:
Max Allowable Loss for this trade around 1.25-1.5 times credit (2.15-2.50 per 1 condor)I’m going to BUY TO CLOSE 180/190/200 Iron Butterfly here. This will leave 187.5/197.5/207.5 Iron Fly on with 15 days to expiration.
Order Ticket Type Asset Duration Strike C/P Sell To Close HD 02 FEB 18 200 Call Buy To Close HD 02 FEB 18 190 Call Buy To Close HD 02 FEB 18 190 Put Sell To Close HD 02 FEB 18 180 Put Total Debit: $7.80 – $8.00 P/L graph:
This trade has reached a point where it needs to be stopped out. I’m going to BUY TO CLOSE 187.5/197.5/207.5 Iron fly here
Order Ticket Type Asset Duration Strike C/P Sell To Close HD 02 FEB 18 207.5 Call Buy To Close HD 02 FEB 18 197.5 Call Buy To Close HD 02 FEB 18 197.5 Put Sell To Close HD 02 FEB 18 187.5 Put Total Debit: $5.30 P/L graph:
I’m going to roll up 2850/2860 Bear Call spread to 2890/2900 and I’m going to increase the size to match Bull Put spreads. This will make it a balanced Iron Condor.
Order Ticket Type Size Asset Duration Strike C/P Buy To Open Full Size SPX 28 FEB 18 2900 Call Sell To Open Full Size SPX 28 FEB 18 2890 Call Sell To Close Half Size SPX 28 FEB 18 2860 Call Buy To Close Half Size SPX 28 FEB 18 2850 Call Total Debit: $0.60 NOTE: The cost of this roll will be financed with a roll of the puts, which we’ll do next.
P/L graph:
SPX is at 2825 and short strike’s delta on the upside is around 20. We’re going to buy a hedge to remove some of the short delta exposure. Right now NET delta of this IC is around -25. I’m looking to add 20 delta to this trade. I’m buying (2) 10 delta calls.
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 16 MAR 18 2940 Call Total Debit: $4.00 P/L graph:
NOTE: The goal of this adjustment is to lift T+0 line on the upside.
We’re going to BUY TO CLOSE 2660/2650 Put spread
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 28 FEB 18 2660 Put Sell To Close SPX 28 FEB 18 2650 Put Total Debit: $0.30 And we’re going to SELL TO OPEN 2730/2720 Put spread
Order Ticket Type Asset Duration Strike C/P Sell To Open SPX 28 FEB 18 2730 Put Buy To Open SPX 28 FEB 18 2720 Put Total Credit: $0.80 P/L graph:
NOTE: This is going to increase overall credit and pay for the previous adjustment. The pressure is still on the upside, I will look to stop this trade out around 2855-2860.
This trade has reached a point where it needs to be stopped out.
I’m going to BUY TO CLOSE Bear Call spread first, leaving the puts on for now.
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 28 FEB 18 2900 Call Buy To Close SPX 28 FEB 18 2890 Call Total Debit: $3.20 NOTE: We did not get a fill on the roll up of the Bull Put spread. We’re going to leave 2660/2650 Put spread on.
We’re going to put on an EIP trade in 29MAR expiration with about 58 days to expiration.
We’re using tiered entry for this strategy.- Tier 1. 1520/1570/1600 Put butterfly
- Tier 2. 1540/1590/1620 Put butterfly (RUT trading above 1600)
- Tier 3. 1560/1610/1640 Put butterfly (RUT trading above 1620)
We’re going to manage downside risk WHEN/IF RUT trades down to 1550.
Order Ticket Type Asset Duration Strike C/P BTO RUT 29 MAR 18 1600 Put STO X2 RUT 29 MAR 18 1570 Put BTO RUT 29 MAR 18 1520 Put Total Credit: $1.20 P/L graph:
We’re going to put on a Broken Wing Put fly in SPX in 23FEB expiration.
Buying (1) 2710 Put
Selling (2) 2740 Put
Buying (1) 2750 PutOrder Ticket Type Asset Duration Strike C/P Buy To Open SPX 23 FEB 18 2750 Put Sell To Open SPX 23 FEB 18 2740 Put Buy To Open SPX 23 FEB 18 2710 Put Total Credit: $1.70 P/L graph:
SPX moved 200 points lower since entry, I’m going to close out this trade for a loss and look for a new set up at much lower strikes and much less directional risk.
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 23 FEB 18 2750 Put Buy To Close SPX 23 FEB 18 2740 Put Sell To Close SPX 23 FEB 18 2710 Put Total Debit: $11.00 P/L graph:
