Forum Replies Created
-
Posts
-
Closing RUT trade. Took an opportunity on a market pop and closed the lower put spread first for 1.50db.
This is the leftover position:
-
This reply was modified 3 years, 6 months ago by
Gabriel S.
Closing the rest of the position and exiting with a profit!
Total profit including commissions and fees: $264
LOW at 195.11
I’m looking at a possible trend change play here. So far we’ve seen lower lows and lower highs.
Today, MACD crossed bullish but still under 0 line and PSAR Reversal triggered long. This can all change if we see a close under recent low.
I’m going with a simple InOut spread, one leg ITM and one leg OTM. I want to pay as close to 50% of the width of the spread as possible.
I’m doing a 10 point wide spread and want to pay as close to 5.00 as possible.
This trade has about 50% implied probability of profit. Size accordingly.
Chart:
Risk Profile:
Order Ticket:
SPX at 3686
We’re going to make another adjustment with 11DTE. Rolling in the wings, collecting a credit, reducing risk…
Risk Profile:
Order Ticket:
You should have access to Slack, please email support if you dont
SPX at 3871
I’m going to enter a new BEAR TRAP with 38 days until expiry.
This is a 30 point wide put debit spread that is financed by naked short OTM puts.
Risk Profile:
Order Ticket:
Selling naked options has a big risk, so please be aware of risk before considering taking any short naked option positions.
I will hold this position to as close to expiry as possible and if SPX enters the TRAP, I will consider making adjustments in a way of rolling long put spreads down or buying a put to keep my NET delta close to flat.
You would need a margin account for this trade right ?
Is this specific for SPX or could be applied for SPY or QQQ as well ?
You could apply it to whichever underlying. SPX has expirations every day of the week so it provides more opportunities. As far as margin goes, all you need is an account where you can trade spreads.
OIH at 242.68
I’m going to make an adjustment to reduce risk as we’re getting closer to expiry. 16 days left.
While the chart looks decent here with price breaking above a declining trend line, MACD bullish and crossing above 0 line, the problem I have is that my pos has 16 days until expiry
Chart:
We need to get above 250 in 2 weeks or this trade is going to be down most of the premium paid
Here’s one way I can adjust to fix the problem
Selling the long 245 call in the 21OCT expiry and buying a 257.5 call in the 28OCT expiry.
This is a 3.10 credit trade, which means my risk will go from 7.35 to 4.25Here’s how this will change the risk profile for this trade:
Risk Profile:
Order Ticket:
SPX at 3650
I’m going to set up a Bear Trap with 54DTE.
This trade involves selling OTM puts naked, which has a high degree of risk.
I am buying a 10 point wide put debit spread and I am selling an OTM put naked to finance this purchase.
I plan on adjusting this position’s NET delta IF/WHEN we get into the trap. Trap being between my long put debit spread and a short naked put.
Risk Profile:
Order Ticket:
I’m writing this post to show how I adjusted this trade and my thinking behind it.
I started this put Calendar on SPY on 9/14. My thinking was that we were going to stay within the range and I was looking for 15-20% profit but because markets were so volatile I was willing to make additional adjustments and kept the position size small.
On 9/16 I turned it into a double calendar:
9/21 Market moved down and I move the short legs to adjust deltas:
9/23 was a gap down so I closed one of the calendars and repositioned the shorts get negative delta and turn this into a diagonal as I was expecting a continuation of the move lower:
9/26 market kept moving down and I rolled the long put out and down:
9/29 a Few days later the short had 1DTE and market had move down some more so I rolled down the long put to reduce upside risk:
9/30 Short expired so I closed it and sold another short 7 days out to keep bringing credit and keep reducing risk:
10/3 Market started turning so I rolled the short put up since it was showing a profit and had lost most of its extrinsic value:
10/4 Up move continued so I rolled short put up again:
10/7 I rolled the short out down and out to 7DTE:
10/9 Gave me an opportunity to roll but legs and reposition for a credit and I reduced most of the risk from this position.
Today is 10/11 and this is what I am holding:
-
This topic was modified 3 years, 5 months ago by
WHR at 144.09
I’m going to set up a call debit spread with 38 days until expiration and I am also going to sell a put credit spread to cover the initial outlay for this trade.
This trades takes up $1,000 of margin (less any credit upfront) to put this trade on.
Right now this trade is going for about 0.25 NET credit.
Here are the outcomes:
1. I will stop out below 130 and will possibly lose $300 per combo
2. If we’re between 130 and 150, I will get to keep the 0.25 credit
3. If we’re above 155 at expiry, this combo will make $500 + $25 or $525 on about $975 of risk.This trade has an implied probability of profit around 67%
Risk Profile:
Order Ticket:
SPX at 3588
This trade has 2 days until expiration. We can hold and see if expire inside the trap or we can book it here and look for a new set up.
Risk Profile:
Order Ticket:
-
This reply was modified 3 years, 6 months ago by
