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I’m going to sell a Bear Call spread to remove directional exposure (DELTA)
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 07DEC 18 2895 Call Sell To Open SPX 07DEC 18 2870 Call Total Credit: 3.30 We’re taking a look at a directionally bearish trade in VXX.
After a rough month of October, Volatility has spiked and more importantly, VIX futures are in a fairly steep backwardation. This means that investors are willing to pay more for short-term protection than longer-dated protection. We’re looking for volatility to settle and VIX future contracts to return back into contango.We’re going to put on a Put Butterfly in the direction of an anticipated move (lower).
We’re going to center this butterfly at 32 (25 delta) and use 5 point wings to define our risk.Buy (1) 37 Put
Sell (2) 32 Puts
Buy (1) 27 PutOrder Ticket Type Asset Duration Strike C/P BTO VXX 21DEC 18 37 Put STO X2 VXX 21DEC 18 32 Put BTO VXX 21DEC 18 27 Put Total Debit: 1.35 Risk Profile: 
We’re going to put on an income trade that is Delta Neutral, Theta Positive and Vega Positive.
This trade will work best in a range bound market action over the next 3 weeks. If we see a strong trending realized volatility in either direction we’ll make necessary adjustments.
This is a scaling Calendar trade that starts slightly OTM and we’ll add another round of Calendars IF/WHEN RUT trades outside of breakevens at expiration.
Order Ticket Type Asset Duration Strike C/P Sell To Open RUT 07DEC 18 1530 Put Buy To Open RUT 31DEC 18 1530 Put Total Debit: 9.90 Risk Profile: 
Profit Target: 15-20% ROR
Adjustment Points: 1460 & 1600We’re going to add a Bear Call spread to increase overall credit and boost Theta slightly.
This adjustment will also turn Delta from slightly positive to slightly negative.Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 07DEC 18 2925 Call Sell To Open SPX 07DEC 18 2900 Call Total Credit: 2.00 Risk Profile:
We’re going to put on an income trade in SPX 21DEC expiration cycle with 44 days to expiration.
This is a lower probability Iron Condor.
We’re looking to sell options, both a call and a put, around 30 delta. These are 10 point wide credit spreads.
We’re looking to collect $5.20 credit. This trade will require $4.80 of margin per 1 Iron Condor.
Our Profit Target is to collect about 20% of credit (1.00-1.10) and our MAL would be a loss of around 20-25% of margin (1.00-1.20). Our target time frame to close out this trade is around 3 weeks.Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 21DEC 18 2885 Call Sell To Open SPX 21DEC 18 2875 Call Sell To Open SPX 21DEC 18 2705 Put Buy To Open SPX 21DEC 18 2695 Put Total Credit: 5.20 Risk Profile: 
This trade is at 10% ROR in 2 day or about 1/2 way to our profit target.
Going to take 1/2 position off
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 21DEC 18 2885 Call Buy To Close SPX 21DEC 18 2875 Call Buy To Close SPX 21DEC 18 2705 Put Sell To Close SPX 21DEC 18 2695 Put Total Debit: 4.75 Going to take this trade off 4 days in, at around 8% ROR
Order Ticket Type Asset Duration Strike C/P Buy To Close RUT 07DEC 18 1530 Put Sell To Close RUT 31DEC 18 1530 Put Total Credit: 10.70 We’re going to take this lock in profits here.
1. Close out Bear Call spread:
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 07DEC 18 2895 Call Buy To Close SPX 07DEC 18 2870 Call Total Debit: 3.10 2. Close out Broken Wing butterfly:
Order Ticket Type Asset Duration Strike C/P STC SPX 07DEC 18 2650 Put BTC X2 SPX 07DEC 18 2625 Put STC SPX 07DEC 18 2575 Put Total Debit: 1.25 Risk Profile:
We’re going to remove the Bear Call spread as part of the unwinding of this trade.
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 07DEC 18 2925 Call Buy To Close SPX 07DEC 18 2900 Call Total Debit: 0.85 We’re going to close out remaining half of this Iron Condor
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 21DEC 18 2885 Call Buy To Close SPX 21DEC 18 2875 Call Buy To Close SPX 21DEC 18 2705 Put Sell To Close SPX 21DEC 18 2695 Put Total Debit: 4.50 We’re going to close out the remaining part of this trade, BW Put Butterfly.
Order Ticket Type Asset Duration Strike C/P STC SPX 07DEC 18 2550 Put BTC X2 SPX 07DEC 18 2525 Put STC SPX 07DEC 18 2475 Put Total Debit: 0.80 Risk Profile:
SPX at 2736 VIX at 19.80 We’re going to put on an income trade in 31DEC expiration cycle with 48 days to expiration.
This is a Broken Wing Put Butterfly. We’re buying 2475 put, selling (2) 2525 puts, buying 2550 put.
This is a high probability trade with max potential profit around 9% return on risk.Order Ticket Type Asset Duration Strike C/P BTO SPX 31DEC 18 2550 Put STO X2 SPX 31DEC 18 2525 Put BTO SPX 31DEC 18 2475 Put Total Credit: 2.00 Risk Profile:
My stop is going to be IF/WHEN SPX trades at 2550
We’re going to put on a Non Directional Income trade in BA. We’re going to start with an ATM Put calendar, selling DEC put and buying JAN put. The best case for this trade is we see a sideways price action over the next few weeks while the market decides which way to go next. We’re planning on adding another Calendar IF/WHEN we see a move either below 320 or above 360. Profit Target for this trade around 15-20% ROR. Stop at a loss of around 25% ROR
Risk Profile:
Order Ticket Type Asset Duration Strike C/P Buy To Open BA 18JAN 19 340 Put Sell To Open BA 21DEC 18 340 Put Total Debit: 3.30 We’re going to manage this trade at +20% ROR target
Order Ticket Type Asset Duration Strike C/P BTC VXX 21DEC 18 37 Put STC X2 VXX 21DEC 18 32 Put BTC VXX 21DEC 18 27 Put Total Credit: 1.60 We are going to add another Put Calendar, centered around 300 strike.
Order Ticket Type Asset Duration Strike C/P Buy To Open BA 18JAN 19 300 Put Sell To Open BA 21DEC 18 300 Put Total Debit: 2.90 Risk Profile:
