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SPX trading at 2685.
We’re going to work out of the Bear Call spread and close out the hedge.
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 16 MAR 18 2915 Call Buy To Close SPX 16 MAR 18 2905 Call Total Debit: $0.40 Sell To Close the Hedge
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 16 MAR 18 2940 Call Total Credit: $3.70 P/L graph:
With SPX selling off from 2870 down to 2600, the remaining 2660/2650 put was under pressure. I’m going to sell a call spread to remove some of the directional exposure. I’m selling 1 call spread for every 2 remaining put spreads.
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 28 FEB 18 2820 Call Sell To Open SPX 28 FEB 18 2810 Call Total Credit: $1.55 P/L graph:
SPX at 2707
VIX at 24.17I’m looking to sell an Iron Condor in 6APR 18 expiration cycle with 58 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 don’t 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:
2890/2900 Call spread
2500/2490 Put spreadOrder Ticket Type Asset Duration Strike C/P Buy To Open SPX 06 APR 18 2900 Call Sell To Open SPX 06 APR 18 2890 Call Sell To Open SPX 06 APR 18 2500 Put Buy To Open SPX 06 APR 18 2490 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: 2760 and 2600P/L graph:
We’re going to Buy To Close 2645/2635 Put spread to stop this trade out.
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 16 MAR 18 2645 Put Sell To Close SPX 16 MAR 18 2635 Put Total Debit: $4.60 We’re going to stop this trade out here. 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: $5.25 We’re going to Buy To Open a Put spread to cut NET delta.
Right now NET delta for a 10 contract IC is around +11. I’m using 2520/2500 Put debit spread that has a NET delta of around -3. I’m using (2) put spreads to cut NET delta of this IC from +11 to +5
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 06 APR 18 2520 Put Sell To Open SPX 06 APR 18 2500 Put Total Debit: $6.40 I’m going to add an ATM Put butterfly (balanced).
Buy 1460 Put
Sell 1510 Put
Buy 1560 PutOrder Ticket Type Asset Duration Strike C/P BTO RUT 29 MAR 18 1560 Put STO X2 RUT 29 MAR 18 1510 Put BTO RUT 29 MAR 18 1460 Put Total Debit: $12.00 P/L graph:
Trade Update:
This is what current EIP position looks like:
RUT traded in a massive 130 point range since entry and adding a balanced put butterfly re-balanced this position.
We’re in a fairly wide, 100 point profit area (tent) and we’ll look to make adjustments around 1570-1580 (upside) and around 1500 (downside). We’re going to look to add another put butterfly IF/When RUT trades and holds above 1575. I think adding 1490/1540/1520 is the ‘best’ way to rebalance NET delta on the upside. Here’s what that would look like:
On the downside, we’ll look to roll 1600 long put up 20 points to make both put butterflys balanced. Here’s what that looks like:
We’re going to put on an EIP trade in 20APR expiration with about 58 days to expiration.
We’re using tiered entry for this strategy.Tier 1. 1470/1520/1550 Put butterfly
Tier 2. 1490/1540/1570 Put butterfly (RUT trading above 1550)
Tier 3. 1510/1560/1590 (RUT trading above 1570)We’re going to manage downside risk WHEN/IF RUT trades down to 1490.
Order Ticket Type Asset Duration Strike C/P BTO RUT 20 APR 18 1550 Put STO X2 RUT 20 APR 18 1520 Put BTO RUT 20 APR 18 1470 Put Total Credit: $1.00 Risk Profile:
SPX at 2718
VIX at 19.35I’m looking to sell an Iron Condor in 20APR 18 expiration cycle with 58 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.
I want to keep my credit fairly balanced between both spreads. For example, I don’t 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:
2890/2900 Call spread
2500/2490 Put spreadOrder Ticket Type Asset Duration Strike C/P Buy To Open SPX 20 APR 18 2900 Call Sell To Open SPX 20 APR 18 2890 Call Sell To Open SPX 20 APR 18 2500 Put Buy To Open SPX 20 APR 18 2490 Put Total Credit: $1.70 Risk Management: I will use OTM options to hedge this Iron Condor when 2890 Call’s delta reaches 20 and 2500 Put’s delta reaches 25.
Price levels for adjustments: 2760 and 2620Risk Profile:
SPX at 2703.
2890/2900 Bear Call spread is showing mid-price $0.375
It makes sense to Buy To Close this call spread because I don’t expect much more decay there. This will leave 2500/2490 Bull Put spread, currently at 0.70c, it is hedged with a debit put spread. I may look to sell another call spread IF/WHEN SPX breaks recent resistance around 2750 and rallies towards 2800.Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 06 APR 18 2900 Call Buy To Close SPX 06 APR 18 2890 Call Total Debit: $0.40 – $0.30 Risk Profile:
AMZN breaking out to ATH this morning, trading around 1520.
I’m looking to get long this name, but instead of buying premium with IV rank around 60% I’m going to structure this trade similar to EIP.
I’m going to put on a Broken Wing Put Butterfly. I’m going to center my butterfly around 1500 Put and buy a 40 point wing on the downside and a 20 point wing on the upside. Here’s what this trade looks like:Risk Profile:
My only risk in this trade is on the downside. I will look to manage my risk IF/WHEN AMZN trades under 1480. I will look to cut my NET delta by either rolling 1520 puts up to 1540 or rolling my 1460 puts up to 1480.
Order Ticket Type Asset Duration Strike C/P BTO AMZN 20 APR 18 1520 Put STO X2 AMZN 20 APR 18 1500 Put BTO AMZN 20 APR 18 1460 Put Total Credit: $6.00 I’m going to BUY TO CLOSE 2500/2490 Bull Put spread here.
NOTE: 2890/2900 Bear Call spread TO CLOSE did not fill at .30c – that side is still open.
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 06 APR 18 2500 Put Sell To Close SPX 06 APR 18 2490 Put Total Debit: $0.30 – $0.40 Risk Profile:
I’m going to SELL TO OPEN a put spread closer to ATM. I’m looking for a 10pt wide spread that pays about $1.00 per spread.
Order Ticket Type Asset Duration Strike C/P Sell To Open SPX 06 APR 18 2650 Put Buy To Open SPX 06 APR 18 2640 Put Total Credit: $1.10 Risk Profile:
I’m going to roll 1460 Put up to 1470 strike here to reduce downside risk.
Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 29 MAR 18 1470 Put Sell To Close RUT 29 MAR 18 1460 Put Total Debit: $2.55 P/L graph:
