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I’m going to start to unwind this trade with 18 days to expiration.
1. I’m going to BUY TO CLOSE 2600/2610 Bear Call spread
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 17 NOV 17 2610 Call Buy To Close SPX 17 NOV 17 2600 Call Total Debit: $2.00 2. I’m going to Sell To Close 22NOV 2615 hedge
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 22 NOV 17 2615 Call Total Credit: $2.60 P/L graph
NOTE: This leaves 2460/2450 Bull Put spread that is currently trading around .30c with 18 days to go.
We’re going to adjust this trade by:
1. SELL TO CLOSE Tier 1 – 1440/1490/1530 put butterfly
Order Ticket Type Asset Duration Strike C/P STC RUT 15 DEC 17 1530 Put BTC X2 RUT 15 DEC 17 1490 Put STC RUT 15 DEC 17 1440 Put Total Credit: $8.00 2. BUY TO OPEN Tier 1 – 1420/1470/1500 put butterfly
Order Ticket Type Asset Duration Strike C/P BTO RUT 15 DEC 17 1500 Put STO X2 RUT 15 DEC 17 1470 Put BTO RUT 15 DEC 17 1420 Put Total Debit: $1.50 P/L Graph
Trade Setup:
SPX at 2592
VIX at 9.47I’m going to put on an Iron Condor in 05 JAN expiration cycle with 60 days until expiration. I’m selling:
SPX 2470/2460 Bull Put spread
SPX 2685/2695 Bear Call spreadShort strike on the put side has a delta around 15 and the short call delta around 11.
These are 10 point wide credit spreads.Risk Profile:
My Max Allowable Loss (MAL) is around 1.5 times total credit. If total credit is $1.70 then MAL is $2.50
My first profit target is 50% of credit in 30 days or less.
I’m going to manage this position when short put delta reaches 25 or short call delta 20Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 05 JAN 18 2695 Call Sell To Open SPX 05 JAN 18 2685 Call Sell To Open SPX 05 JAN 18 2470 Put Buy To Open SPX 05 JAN 18 2460 Put Total Credit: $1.70 I’m going to remove Bear Call spreads here. Mid-price showing around 0.35c to close
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 05 JAN 17 2695 Call Buy To Close SPX 05 JAN 17 2685 Call Total Debit: $0.35 P/L graph:
Comments: I will look to sell another Bear Call spread against remaining Bull Put spread, I’d like to see SPX trade higher first. I will make downside adjustments IF/WHEN 2470 put delta crosses 25.
I’m going to try to close this Iron Condor here. With 25 days to go, each spread of this trade is showing around .40c debit. I dont expect a whole lot of decay so closing this trade early makes sense.
1. BUY TO CLOSE Iron Condor
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 15 DEC 17 2650 Call Buy To Close SPX 15 DEC 17 2640 Call Buy To Close SPX 15 DEC 17 2440 Put Sell To Close SPX 15 DEC 17 2430 Put Total Debit: $0.80 2. SELL TO CLOSE OTM Hedge
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 15 DEC 17 2665 Call Total Credit: $0.70 P/L graph:
We’re going to make an adjustment on the upside as RUT trades above 1500:
Order Ticket Type Asset Duration Strike C/P Sell To Close RUT 15 DEC 17 1500 Put Buy To Open RUT 15 DEC 17 1490 Put Total Credit: $2.80 P/L graph:
AnonymousIgor, what were the closing details of this trade?
After closing Tier1, T2 and T3 were left on. RUT never traded down towards the profit tent and the trade expired for a 4% ROR loss
P/L graph into expiration:
I’m going to put on an EIP trade in RUT with 65 days to expiration.
I am buying a broken wing put butterfly, centered at 1490 with a 50 point wing on the downside and a 30 point wing on the upside. Here’s what P/L graph looks like:
I am going to scale into this trade in 1/3 or 3 Tiers.
Tier1: 1440/1490/1520 put fly
Tier2: 1460/1510/1540 put fly (RUT above 1520)
Tier3: 1480/1530/1560 put fly (RUT above 1540)I am going to set my profit target at about 15-20% return on risk and my MAL (max allowable loss) should not exceed my profit target. I will make adjustments on the downside IF/WHEN RUT trades 30 points below 1490
Order Ticket Type Asset Duration Strike C/P BTO RUT 31 JAN 18 1520 Put STO X2 RUT 31 JAN 18 1490 Put BTO RUT 31 JAN 18 1440 Put Total Debit: $0.40 I’m going to BUY TO CLOSE remaining 2470/2460 Bull Put spread for .40c or less
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 05 JAN 18 2470 Put Sell To Close SPX 05 JAN 18 2460 Put Total Debit: $0.40 P/L graph:
We’re going to BUY TO CLOSE this Iron Condor for .65c or less
Earnings are coming out before this contract expiration, it’s better to exit here to avoid event risk.
Order Ticket Type Asset Duration Strike C/P Sell To Close ADBE 15 DEC 17 200 Call Buy To Close ADBE 15 DEC 17 195 Call Buy To Close ADBE 15 DEC 17 160 Put Sell To Close ADBE 15 DEC 17 155 Put Total Debit: $0.65 P/L graph:
RUT traded above both triggers for Tier2 (1520) and Tier3 (1540).
I’m going to ADD TIER2:
Order Ticket Type Asset Duration Strike C/P BTO RUT 31 JAN 18 1540 Put STO X2 RUT 31 JAN 18 1510 Put BTO RUT 31 JAN 18 1460 Put Total Credit: $0.10 *NOTE: Mid-price showing CREDIT between 0.10 – 0.25
1460/1510/1540 put fly. This will add NET positive delta and theta to the trade. I will also add Tier3, I’d like to see price to stay above 1540.
P/L graph:
SPX at 2643
VIX at 11.13We’re going to put on an Iron Condor Plus in 19JAN expiration cycle with 50 days until expiration. We’re selling:
SPX 2595/2585 Bull Put spread
SPX 2685/2695 Bear Call spreadShort strike on the put side has a delta around 31 and the short call delta around 30.
These are 10 point wide credit spreads.P/L graph:
Our profit target is about 20% of the credit. Our stop is WHEN/IF we’re down the same amount as our profit target, so risking $100 to make $100 (per 1 contract).
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 19 JAN 18 2695 Call Sell To Open SPX 19 JAN 18 2685 Call Sell To Open SPX 19 JAN 18 2595 Put Buy To Open SPX 19 JAN 18 2585 Put Total Credit: $5.20 SPX at 2647
VIX at 10.71I’m going to put on an Iron Condor in 02 FEB expiration cycle with 60 days until expiration. I’m selling:
SPX 2520/2510 Bull Put spread
SPX 2750/2760 Bear Call spreadShort strike on the put side has a delta around 16 and the short call delta around 9.
These are 10 point wide credit spreads.Risk Profile:
My Max Allowable Loss (MAL) is around 1.5 times total credit. If total credit is $1.70 then MAL is $2.50
My first profit target is 50% of credit in 30 days or less.
I’m going to manage this position when short put delta reaches 25 or short call delta 20
Upside Adjustment Level: 2690
Downside Adjustment Level: 2585Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 02 FEB 18 2760 Call Sell To Open SPX 02 FEB 18 2750 Call Sell To Open SPX 02 FEB 18 2520 Put Buy To Open SPX 02 FEB 18 2510 Put Total Credit: $1.70 – $1.80 I’m going to exit this trade with 10 days until expiration. All options that are part of this trade are currently Out of The Money.
Mid price is showing a small credit to exit, which means this trade can be closed for a slightly bigger profit than Max Potential Profit on the upside.P/L graph:
Order Ticket Type Asset Duration Strike C/P STC RUT 15 DEC 17 1490 Put BTC X2 RUT 15 DEC 17 1470 Put STC RUT 15 DEC 17 1420 Put Total Credit: $0.10
