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CL – ROLLING 55 CALL DOWN TO 36 TO CONVERT THIS STRANGLE INTO A STRADDLE.
THIS TRADE IS UNDER PRESSURE FROM RECENT MOVE IN CL AND WE’LL HAVE TO ROLL THIS TRADE SEVERAL TIMES GOING FORWARD
BA at 115
I’m selling an OTM put with an Implied Probability of Profit around 80%.
My goal is to capture 50-80% of credit and close out the trade.
Buying a put at a lower strike price will help define risk in this trade.
Order Ticket Type Asset Duration Strike C/P Sell To Open BA 15MAY 75 PUT Total Credit: 13.50 CL at 28.16
I’M ADDING ANOTHER STRANGLE, COLLECTING ADDITIONAL CREDIT. THE RISK IN THIS TRADE IS ON THE UPSIDE, I’M GOING TO LEAVE A STRADDLE AT 36 STRIKE OPEN FOR NOW.
Order Ticket Type Asset Duration Strike C/P Sell To Open /CL 16APR 26.5 PUT Sell To Open /CL 16APR 30 CALL Total Credit: 6.10 /CL AT 24.75
WE’RE BUYING TO CLOSE 36 CALL AND WILL LOOK TO ROLL SHORT 36 PUT DOWN NEXT
Order Ticket Type Asset Duration Strike C/P Buy To Close /CL 16APR 36 CALL Total Debit: 0.42 VIX at 73
Cash VIX is at 70+
However, VIX options are priced based on VIX future contracts. June VX contract is trading at 44.90
Either VIX is coming down or the VX contract is going towards 80.
I’m betting that VIX at 80 is not a sustainable level over the next 90 days. I can be wrong, so we’re going to use a defined risk trade.
Order Ticket Type Asset Duration Strike C/P Buy To Open VIX 17JUN 85 CALL Sell To Open VIX 17JUN 80 CALL Total Credit: 0.50 CSCO AT 36
I’m selling 30DTE 30 Put with the intention to take the stock IF it gets there. If not, collecting $100 on $3000 of BP (cash-secured) is a 3% return over 30 days or 40% ann ROR
Order Ticket Type Asset Duration Strike C/P Sell To Open CSCO 17APR 30 PUT Total Credit: 1.00 BA AT 123
I’M GOING TO PICK UP AN OTM PUT TO CUT DOWN RISK AND REDUCE MARGIN REQUIREMENT
Order Ticket Type Asset Duration Strike C/P Buy To Open BA 15MAY 60 PUT Total Debit: 4.60 WE’RE ROLLING 36 PUT DOWN TO 26.5 PUT
/CL AT 24
I’M ROLLING 30 CALL DOWN TO 26.5 STRIKE TO MAKE IT A 26.5 STRADDLE
SPX at 2575
I’m going to put on an Iron Condor that is going to be UNBALANCED with a put debit spread built in to help manage risk on the downside.
Here’s what this trade will look like fully entered:
The first step is to enter a PUT condor:
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 15MAY 2200 PUT Sell To Open SPX 15MAY 2175 PUT Sell To Open SPX 15MAY 2000 PUT Buy To Open SPX 15MAY 1950 PUT Total Credit: 1.30 The next step would be to sell an ATM call spread:
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 15MAY 2585 CALL Sell To Open SPX 15MAY 2575 CALL Total Credit: 5.50 /CL at 20
I’m rolling 26.5 call down to 23.5 strike, collecting additional credit and inverting this strangle by 3 points
BA at 131.70
I’m going to exit this put spread for a profit with 44 days utnil expiration
Order Ticket Type Asset Duration Strike C/P Buy To Close BA 15MAY 75 PUT Sell To Close BA 15MAY 60 PUT Total Debit: 1.90 AAPL AT 241
I’m selling an OTM put with an Implied POP around 90%
I’m looking for a return on capital around 20% per ann. We talked about the process of strike selection in the chat:
Here’s my thought process for a new trade in AAPL
I’m going to sell an OTM put and I’d like to have a 20% Return on capital that will be used to secure this trade
Selling 190P, 15DTE for 1.65
Credit: 165
BPR: 19,000
ROM: 0.86% over 15 days
If this trade generates 0.86% every 15 days, that’s 21.13% over 365 days
190 PUT is a 8 delta and based on current IV, there’s a 90% prob this put expires OTMOrder Ticket Type Asset Duration Strike C/P Sell To Open AAPL 17APR 190 PUT Total Credit: 1.60 /CL AT 28.95
I’m rolling 23.5 call up to 26.5 strike, the opposite of last adjustment
AAPL at 264
I’m buying to close this put at 55% of max profit with 10 days until expiration.
Order Ticket Type Asset Duration Strike C/P Buy To Close AAPL 17APR 240 PUT Total Debit: 2.15
