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*2890/2900 Bear Calls filled to close from this post
We’re going to SELL TO OPEN a call spread to cut overall directional exposure here. We’re selling 1 Bear Call spread for every 2 Bull Put spreads that are open.
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 06 APR 18 2850 Call Sell To Open SPX 06 APR 18 2840 Call Total Credit: $1.10 Risk Profile:
I’m going to adjust this trade by rolling 1470 put up to 1480. This will decrease downside risk and I plan on scaling in IF/WHEN RUT trades above 1550
Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 20 APR 18 1480 Put Sell To Close RUT 20 APR 18 1470 Put Total Debit: $3.10 Risk Profile:
I’m going to adjust this trade in several steps:
1. Sell To Close 2520/2500 put spread (this was the hedge on the downside)
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 06 APR 18 2520 Put Buy To Close SPX 06 APR 18 2500 Put Total Credit: $1.10 2. Roll 2650/2640 Bull Put spread down to 2600/2590
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 06 APR 18 2650 Put Sell To Close SPX 06 APR 18 2640 Put Sell To Open SPX 06 APR 18 2600 Put Buy To Open SPX 06 APR 18 2590 Put Total Debit: $0.75 Risk Profile:
NOTE: I’m going to hold this IC and use 2625 area as my potential stop on the downside.
NFLX is trading around 325, another ATH. RSI (14) is around 80, which is overbought, but that doesn’t mean that the stock has to go down. We can see a correction through time, where instead of going down the stock with trade sideways or maybe higher but at a lower rate. Here’s the chart:
I’m looking to buy a calendar around ATM.
I’m going to use April expiration as my long option because NFLX has earnings around Apr 16. This will help this trade as implied volatility will rise it will keep premium from decaying.Front-month options (MAR expiration) don’t have earnings risk and IF NFLX trades sideways to higher I’d expect that premium to decay pretty quick.
I’d like to set my target at 20% ROR and IF NFLX breaks outside of 345 or 300 I will consider adding another ATM calendar.Order Ticket Type Asset Duration Strike C/P Sell To Open NFLX 29 MAR 18 320 Put Buy To Open NFLX 20 APR 18 320 Put Total Debit: $7.50 Risk Profile:
I’m going to roll 1600 put down to 1590.
This will re-balance NET delta and remove some of the upside risk.Order Ticket Type Asset Duration Strike C/P Sell To Close RUT 29 MAR 18 1600 Put Buy To Open RUT 29 MAR 18 1590 Put Total Credit: $6.60 Risk Profile:
Next upside adjustment point at around 1585.
I’m going to scale Tier 2 of this trade.
Tier 2 is centered 20 points above Tier 1 and I’m using a 50 point wing on the downside and a 30 point wing on the upside.
This is a 1490/1540/1570 put butterfly. This butterfly showing mid price around .10c debitOrder Ticket Type Asset Duration Strike C/P BTO RUT 20 APR 18 1570 Put STO X2 RUT 20 APR 18 1540 Put BTO RUT 20 APR 18 1490 Put Total Debit: $0.10 Risk Profile:
We’re going to take this trade off, just short of our profit target.
NFLX has traded in a range since we entered about a week ago. As time starts to run out, this position will start to become more sensitive to price changes (short gamma). It’s better to take a winner and look for another opportunity.Order Ticket Type Asset Duration Strike C/P Buy To Close NFLX 29 MAR 18 320 Put Buy To Close NFLX 20 APR 18 320 Put Total Credit: $8.80 – $9.00 Risk Profile:
We’re going to take profits here.
Order Ticket Type Asset Duration Strike C/P STC AMZN 20 APR 18 1520 Put BTC X2 AMZN 20 APR 18 1500 Put STC AMZN 20 APR 18 1460 Put Total Debit: $1.70 Risk Profile:
We’re going to add Tier 3.
I’d like to add more positive delta to this trade so I will unbalance Tier 3 butterfly by going 50pt on the downside and 20pt (instead of 30) on the upside.Order Ticket Type Asset Duration Strike C/P BTO RUT 20 APR 18 1580 Put STO X2 RUT 20 APR 18 1560 Put BTO RUT 20 APR 18 1510 Put Total Credit: $2.00 Risk Profile:
We’re going to close out lower put butterfly, leaving 1520/1570/1590 put butterfly on.
Order Ticket Type Asset Duration Strike C/P STC RUT 29 MAR 18 1560 Put BTC X2 RUT 29 MAR 18 1510 Put STC RUT 29 MAR 18 1470 Put Total Credit: $3.80 Risk Profile:
GOOGL has pulled back to 1140, a level that was previously resistance and may provide short term support here.
With rising 20 and 50 day moving averages, we have to assume that the trend is still higher.
We’re looking to put on an Income trade with a bullish bias.
This trade has 36 days to expiration. Our goal is to make about 15-20% ROR and we don’t want to lose a lot more than that, if the trade works against us.Chart:
Order Ticket Type Asset Duration Strike C/P BTO GOOGL 20 APR 18 1140 Put STO X2 GOOGL 20 APR 18 1125 Put BTO GOOGL 20 APR 18 1100 Put Total Credit: $2.00 Risk Profile:
I’m going to add another broken wing put butterfly at lower strikes.
This will bring in additional credit in and push the breakeven level lower.Order Ticket Type Asset Duration Strike C/P BTO GOOGL 20 APR 18 1110 Put STO X2 GOOGL 20 APR 18 1095 Put BTO GOOGL 20 APR 18 1070 Put Total Credit: $3.00 Risk Profile:
ADBE is trading just under an ATH after a strong earnings report. We’re looking for sideways to higher prices over the next few weeks.
Chart:
We’re going to put on an Income Calendar.
We’re looking to sell a put close to ATM in APR cycle and buy a put at the same strike price but in MAY expiration.Order Ticket Type Asset Duration Strike C/P Sell To Open ADBE 20 APR 18 230 Put Buy To Open ADBE 18 MAY 18 230 Put Total Debit: $2.60 Risk Profile:
We’re looking for 15% ROR as our target profit.
We’re going to add another ATM put calendar on the break of either 220 or 240.Original post: https://mrtoptick.slack.com/archives/G6WR3CN9G/p1521587821000073
***NOTE: This trade is very close to being stopped out. I’m going to make one more adjustment to see if we can recover here.
I’m going to sell a Bear Call spread to reduce NET delta of this position from 11 to 7.
I’m also using 1050 level as my potential stop for this trade.
If GOOGL manages to recover 1100 level, I will look to remove upside risk.Order Ticket Type Asset Duration Strike C/P Buy To Open GOOGL 20 APR 18 1150 Call Sell To Open GOOGL 20 APR 18 1140 Call Total Credit: $1.75 Risk Profile:
RUT is trading just outside of the tent with 1 week until expiration.
I’m going to stop out of this position at a loss here.
Order Ticket Type Asset Duration Strike C/P STC RUT 29 MAR 18 1590 Put BTC X2 RUT 29 MAR 18 1570 Put STC RUT 29 MAR 18 1520 Put Total Debit: $5.00
