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This trade has been open for 5 days. Current mid price point is showing 4.90
Consider an early exit for this trade if 4.90 fillsP/L graph:
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 19 JAN 18 2695 Call Buy To Close SPX 19 JAN 18 2685 Call Buy To Close SPX 19 JAN 18 2595 Put Sell To Close SPX 19 JAN 18 2585 Put Total Debit: $4.90 I’m going to put on an Income Calendar in AMZN centered around 1150.
I am using puts to establish this position. I am selling 1150 put in 29DEC expiration cycle and I am buying 1150 put in 12JAN expiration cycle.
This trade is done for a debit because the option that we’re selling has less time premium than the option that we’re buying. I am looking to add another calendar centered around 1200 strike IF/WHEN AMZN trades to outside of 1125 or 1180.
I am looking to make around 10-15% return on margin for this trade and I don’t want to risk a lot more than what I’m looking to make.Order Ticket Type Asset Duration Strike C/P Sell To Open AMZN 29 DEC 17 1150 Put Buy To Open AMZN 12 JAN 18 1150 Put Total Debit: $8.00 Risk Profile
Original strikes did not fill at 1.70 credit or higher.
We’re going to shift strikes to:2740/2750 Bear Call
2530/2520 Bull PutP/L graph
Upside adjustment point: 2680
Downside adjustment point: 2590Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 02 FEB 18 2750 Call Sell To Open SPX 02 FEB 18 2740 Call Sell To Open SPX 02 FEB 18 2530 Put Buy To Open SPX 02 FEB 18 2520 Put Total Credit: $1.70 I’m going to add another put calendar at 1190 strike, same expirations
P/L graph:
Order Ticket Type Asset Duration Strike C/P Sell To Open AMZN 29 DEC 17 1190 Put Buy To Open AMZN 12 JAN 18 1190 Put Total Debit: $7.80 We set our Adjustment Point on the upside to around 2680. At this time SPX is trading around 2678 and we’re going to buy a call hedge to reduce our NET delta of this position by 2/3. Our NET delta is about -30 for 10 contract IC. We’ll use 2770 Call (9 deltas) to remove our NET delta exposure. If I add (2) 2770 calls here, it’ll take my NET delta from about -30 to about -12 and this is what my P/L graph looks like after adjustments:
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 02 FEB 18 2770 Call Total Debit: $2.85 AMZN trading around 1194
I’m going to make an adjustment by rolling 1150 Put Calendar to 1210 Put
1. Sell To Close 1150 Put Calendar
Order Ticket Type Asset Duration Strike C/P Buy To Close AMZN 29 DEC 17 1150 Put Sell To Close AMZN 12 JAN 18 1150 Put Total Credit: $5.30 2. Buy To Open 1210 Put Calendar
Order Ticket Type Asset Duration Strike C/P Sell To Open AMZN 29 DEC 17 1210 Put Buy To Open AMZN 12 JAN 18 1210 Put Total Debit: $7.90 P/L graph:
I’m going to add a put calendar around 1170 strike to turn this into a triple calendar:
Order Ticket Type Asset Duration Strike C/P Sell To Open AMZN 29 DEC 17 1170 Put Buy To Open AMZN 12 JAN 18 1170 Put Total Debit: $8.30 P/L graph:
RUT is trading above 1540. I’m going to add Tier 3 but I am using a 20 point wing on the upside instead of a 30 point wing. This will remove any upside risk.
Order Ticket Type Asset Duration Strike C/P BTO RUT 31 JAN 18 1550 Put STO X2 RUT 31 JAN 18 1530 Put BTO RUT 31 JAN 18 1480 Put Total Credit: $2.80 P/L graph:
Front-month options are going to expire next week. Back month options have 21 days to go.
I am going to start to unwind this position by Selling To Close 1210 put calendar first.Order Ticket Type Asset Duration Strike C/P Buy To Close AMZN 29 DEC 17 1210 Put Sell To Close AMZN 12 JAN 18 1210 Put Total Credit: $4.30 – $4.50 P/L graph:
I’m going to close out this position by selling all put calendars.
Sell to close 1270 Put Calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close AMZN 29 DEC 17 1210 Put Sell To Close AMZN 12 JAN 18 1210 Put Total Credit: $3.00 Sell to close 1190 Put Calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close AMZN 29 DEC 17 1190 Put Sell To Close AMZN 12 JAN 18 1190 Put Total Credit: $5.50 Sell to close 1170 Put Calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close AMZN 29 DEC 17 1170 Put Sell To Close AMZN 12 JAN 18 1170 Put Total Credit: $9.20 SPX at 2680
VIX at 10.26I’m going to put on an Iron Condor in 23FEB expiration cycle with 59 days until expiration. I’m selling:
SPX 2560/2550 Bull Put spread
SPX 2780/2790 Bear Call spreadShort strike on the put side has a delta around 16 and the short call delta around 10.
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: 2720
Downside Adjustment Level: 2630Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 23 FEB 18 2790 Call Sell To Open SPX 23 FEB 18 2780 Call Sell To Open SPX 23 FEB 18 2560 Put Buy To Open SPX 23 FEB 18 2550 Put Total Credit: $1.70 HD is trading around 190. It has had a massive move to the upside in the last 2 months. Here’s the chart:
I am looking for sideways action to work off some of the ‘overbought’ conditions and rising 20-day moving average is around 185. That is my first support level on the downside. I am looking to sell an ATM Iron Fly, 10 points wide. Here’s what P/L graph looks like:
I will add another Iron Fly IF or WHEN price breaks outside of either 185 or 195. I will look to make about 15% return on margin and don’t want to risk more than 17-20%. This trade has 36 DTE and I’d like to be out of it in about 20 days.
Order Ticket Type Asset Duration Strike C/P Buy To Open HD 02 FEB 18 200 Call Sell To Open HD 02 FEB 18 190 Call Sell To Open HD 02 FEB 18 190 Put Buy To Open HD 02 FEB 18 180 Put Total Credit: $5.50 We’re going to BUY TO CLOSE 2530/2520 Bull Put spread here.
This leaves 2740/2750 Bear Call on, with an upside hedge.
We’ll look to sell another put spread to increase overall credit for this IC and that will help cover cost IF/WHEN we have to roll up the call spread.
P/L graph:
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 02 FEB 18 2530 Put Sell To Close SPX 02 FEB 18 2520 Put Total Debit: $0.25 I’m going to sell another put spread closer to ATM.
My goal is to collect an additional .90c credit
Order Ticket Type Asset Duration Strike C/P Sell To Open SPX 02 FEB 18 2650 Put Buy To Open SPX 02 FEB 18 2640 Put Total Credit: $0.90 – $1.00 P/L graph:
NOTE: I will look to roll up 2740/2750 Bear Call spread when 2740 Call’s delta turns 30.
I’m going to roll up 2740/2750 Bear Call spread upto 2770/2780 strikes. I will leave the hedge that was bought back on 12/15.
P/L graph:
