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I’m going to adjust this Iron Condor.
I’m buying to close 2590 Put and selling to open 2600 put, turning 2600/2590 Bull Put spread into a 06APR/11APR 2600 put calendar. The remaining 2840/2850 Bear Call spread could be closed for .15 or less.Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 06 APR 18 2590 Put Buy To Open SPX 11 APR 18 2600 Put Total Debit: $7.80 Risk Profile:
ADBE is currently trading around 220 and we’re going to add another round of Put calendars. We’re going ATM (220 strike) same months as the original calendar spread.
Order Ticket Type Asset Duration Strike C/P Sell To Open ADBE 20 APR 18 220 Put Buy To Open ADBE 18 MAY 18 220 Put Total Debit: $2.80 Risk Profile:
Trade Plan: We’ll adjust IF/WHEN ADBE trading outside of break-evens (213 or 237)
I’m going to close out 1/2 of my remaining position here, 10 days left until expiration. I will not be holding through expiration, so will look to exit over the next week or so.
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 06 APR 18 2600 Put Sell To Close SPX 11 APR 18 2600 Put Total Credit: $5.60 Risk Profile:
RUT is trading around 1520 right now.
I’m going to look to cut NET delta of this position. Right now NET delta is about +28. Adding a put with delta -16 will reduce NET delta of this trade to about +12.
I’m using options in the same expiration cycle.Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 20 APR 18 1420 Put Total Debit: $8.70 Risk Profile:
With 3 days until expiration, this trade is becoming very sensitive to price changes (short gamma).
I’m going to take this trade off here.Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 06 APR 18 2600 Put Sell To Close SPX 11 APR 18 2600 Put Total Credit: $8.40 Risk Profile:
We’re going to start to work towards unwinding this position. First, we’re going to remove T3 butterfly (1510/1560/1580)
Order Ticket Type Asset Duration Strike C/P STC RUT 20 APR 18 1580 Put BTC X2 RUT 20 APR 18 1560 Put STC RUT 20 APR 18 1510 Put Total Debit: $14.75 Risk Profile:
This will flatten out NET delta, leaving T1 and T2 butterflys on, with an OTM put hedge. We’ll work on scaling out of the rest over the next few weeks.
We’re going to take this trade off here. ADBE is currently trading between our short strikes and the trade is showing about +15% ROR.
This can be entered as a double calendar or we can take this off by closing each calendar spread separately.Sell To Close APR/MAY 230 Put Calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close ADBE 20 APR 18 230 Put Sell To Close ADBE 18 MAY 18 230 Put Total Credit: $3.10 Sell To Close APR/MAY 220 Put Calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close ADBE 20 APR 18 220 Put Sell To Close ADBE 18 MAY 18 220 Put Total Credit: $3.10 I’m going to close out 1100/1125/1140 put butterfly and look to roll down put spreads of the second put butterfly:
Order Ticket Type Asset Duration Strike C/P STC GOOG 20 APR 18 1140 Put BTC X2 GOOG 20 APR 18 1125 Put STC GOOG 20 APR 18 1100 Put Total Debit: $8.00 Also, 1140/1150 Bear Call spread could be closed for .20c or less
BUY TO CLOSE 1140/1150 Bear Call spread:
Order Ticket Type Asset Duration Strike C/P Sell To Close GOOGL 20 APR 18 1150 Put Buy To Close GOOGL 18 MAY 18 1140 Put Total Debit: $0.20 MCD saw some bullish call buying the last couple of days and earnings are coming up on 4/30/18.
I’m looking to get long options in JUN expiration and sell MAY premium to reduce cost of long options. This is a bullish bias trade and it benefits from an increase in implied volatility.Chart:
I’m looking to:
BUY TO OPEN JUN 155 Call
SELL TO OPEN MAY 160 CallRisk Profile:
Order Ticket Type Asset Duration Strike C/P Sell To Open MCD 18 MAY 18 160 Call Buy To Open MCD 15 JUN 18 155 Call Total Debit: $4.40 I’m looking to make 15% ROR and stop out IF/WHEN MCD trades below breakeven (155)
I’m going to make a further adjustment here.
BUY TO CLOSE 1095/1070 Put spread. I will look to either roll it down or down and out. Earnings coming up in the next 2 weeks.To avoid earnings risk, we can wait until after the event to roll out in time.
Order Ticket Type Asset Duration Strike C/P Buy To Close GOOGL 20 APR 18 1095 Put Sell To Close GOOGL 20 APR 18 1070 Put Total Debit: $20.00 Risk Profile:
LULU has rallied about 10 points since they released their earnings back on 3/27/18. Recently, this stock has made a strong move higher followed by a period of consolidation. We’re looking to put on an Income Calendar with 39 days to expiration (front month contract).
Chart
We’re looking to buy an ATM Put Calendar. We’re going to use MAY puts as our front month options and JUN expiration as our backmonth options. There are two things that are working in our favor here.
1. Options that we’re selling are decaying faster because they have less time to expiration
2. JUN options have next earnings announcement covered, that means that premium in that cycle will decay a lot slower than normal.
In any event, best case is that we don’t see a big move in either direction over the next 3 weeks and we’ll be able to take off this trade with 15-20% return on risk. However, if we DO see a move either below 86 or above 94, we’ll look to add another round of ATM put calendars.Order Ticket Type Asset Duration Strike C/P Sell To Open LULU 18 MAY 18 90 Put Buy To Open LULU 15 JUN 18 90 Put Total Debit: $2.30 Risk Profile:
SPX at 2645
VIX at 20.45I’m looking to sell an Iron Condor in JUN expiration cycle with 65 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:
2860/2870 Call spread
2385/2375 Put spreadOrder Ticket Type Asset Duration Strike C/P Buy To Open SPX 15 JUN 18 2870 CALL Sell To Open SPX 15 JUN 18 2860 CALL Sell To Open SPX 15 JUN 18 2385 PUT Buy To Open SPX 15 JUN 18 2375 PUT Total Credit: $1.70 Risk Management: I will use OTM options to hedge this Iron Condor when 2860 Call’s delta reaches 20 and 2385 Put’s delta reaches 25.
Price levels for adjustments: 2700 and 2525Risk Profile:
We’re going to put on an EIP trade in 15JUN expiration with about 65 days to expiration.
We’re using tiered entry for this strategy.Tier 1. 1480/1530/1560 Put butterfly
Tier 2. 1500/1550/1580 Put butterfly (RUT trading above 1560)
Tier 3. 1520/1570/1600 (RUT trading above 1580)We’re going to manage downside risk WHEN/IF RUT trades down to 1500.
Order Ticket Type Asset Duration Strike C/P BTO RUT 15 JUN 18 1560 PUT STO X2 RUT 15 JUN 18 1530 PUT BTO RUT 15 JUN 18 1480 PUT Total Credit: $1.20 Risk Profile:
We’re going to remove 1480/1520/1550 put fly here.
Order Ticket Type Asset Duration Strike C/P STC RUT 20 APR 18 1550 Put BTC X2 RUT 20 APR 18 1520 Put STC RUT 20 APR 18 1480 Put Total Credit: $4.30 Risk Profile:
April expiration is 1 week away. To avoid big P/L swings, we’re going to take remaining position off and focus on MAY EIP.
Order Ticket Type Asset Duration Strike C/P STC RUT 20 APR 18 1570 Put BTC X2 RUT 20 APR 18 1540 Put STC RUT 20 APR 18 1490 Put Total Credit: $8.50 We also have a 1420 Put we used as a hedge, that’s trading around $0.30 – we’ll sell to close that as well.
