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I started this trade by selling (5) AAPL 13MAY 150 puts and I collected 1.60 credit
This is what this trade looked like 5 days after entry:
AAPL at 145.71
I am going to roll the 150 put down and out 1 week and collect a small credit.
I am still committed to take stock, I’m just improving basis by rolling down and collecting credit for it.
Order Ticket:
I now collected 1.90 credit per contract
On 5/12 I sold (2) MSFT 20MAY 250 puts for 5.00 credit each.
I collected $1000 total and will be willing to take stock at 250/share.
Here’s what this position looks like now:
SPX at 4065
The price is starting to move outside of the tent and I’m going to roll the upper long puts down 10 points.
This adjustment is going to reduce risk on the upside and increase risk on the downside (below lower long puts).
Risk Profile:
Order Ticket:
SPX at 4062
The price is starting to move outside of the ‘trap’.
I’m going to roll the upper long put down 10 points. This adjustment is going to remove all of the upside risk but add a bit more risk on the downside.
This trade has 8 days until expiration. If SPX reverts back into the trap, we have a chance to make a bit more profit. If SPX stays above 4050, we’ll still have a nice profitable trade. The big risk is if SPX moves 8% to the downside in the next 7 days.
Risk Profile:
Order Ticket:
SPX at 3937
I’m going to roll up the lower long put up 15 points
Order Ticket:
Risk Profile:
AAPL at 137.16
I’m going to roll the short 148 put out to 03JUN expiry and collect an additional 0.80
My short put is now ITM and this position is acting as if I was long shares already. The next dividend day is sometime in AUG and I’d be willing to keep rolling this put as long as I can collect a credit (backdoor dividend) in the process.
Order Ticket:
I now collected 2.70 credit per contract
I received 0.70 credit for the roll and now total credit collected is $2.60
MSFT at 253.49
I’m going to roll the short 250 put in 20MAY expiry down to 245 strike and out to 27MAY expiry. I have missed the dividend payment on 18MAY, so I might as well roll down and out for additional credit.
Order Ticket:
Credit collected: 6.57
SPX at 3972
I’m going to roll the short 3990/3950 put spread down to 3950/3905 for a small debit.
This adjustment is going to make both, upside and downside about equal and my BPR is still within the 10k planned risk.
Risk Profile:
Order Ticket:
SPX at 3980
This trade has 2 days left until expiration. The price is still inside the Bear Trap and I think it’s time to close
Risk Profile:
Order Ticket:
SPX at 3971
I’m setting up a Bear Trap with 21 days until expiration.
The ‘TRAP’ is going to be in the range between 3900-3600
I’m buying a 15 point wide put debit spread (3900/3885) and I’m selling a 50 point wide put credit spread (3600/3550).
This trade is going for a small debit of 1.30-1.40
The BPR for this trade is $3,500 plus debit paid. I’m going to set up this trade with planned risk of $10,000 (2 contracts)
Risk Profile:
Order Ticket:
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SPX at 4031
With SPX moving outside of the profit tent, I’m going to pinch in the wings by rolling long puts in 15 points.
This is how this adjustment is going to change the risk profile:
This adjustment is going to reduce overall risk in this trade and I will look to use calendar spreads to manage this trade from here.
Order Ticket:
If SPX continues higher, I will use OTM call calendars to manage this trade.
Here’s an example of buying 17JUN/21JUN 4100 call calendar and this is how it’ll change the risk profile:
Notice that my BRP is within the 10k planned risk and now I’m opening up a potential profit area around 4100.
This trade has 22 days to go and now I will need to be a little more active with this trade.
