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Adobe (NASDAQ:ADBE) stock gained 0.84% after reporting better-than-expected quarterly earnings although its estimate for a revenue rise in its digital media unit for the current quarter suggested a slowing pace of growth.
We’re looking for sideways/higher price action after a big strong earnings report.
We’re going to sell 275P in OCT cycle and buy 275P in NOV cycle.
This trade takes advantage of premium decay in the options that we’re selling as they will lose value faster than the options that we’re buying.If the stock makes a sharp move in either direction, we’ll add another round of ATM calendars.
We’ll aim to capture 20% return on risk and our stop would be a loss of about 25-30% of margin.
Order Ticket Type Asset Duration Strike C/P Sell To Open ADBE 19OCT 18 275 Put Buy To Open ADBE 16NOV 18 275 Put Total Debit: 2.50 Risk Profile:
SPX at 2903
VIX at 12.85We’re going to put on an income trade in 02NOV expiration cycle with 45 days to expiration.
This is a Broken Wing Put Butterfly.
We’re buying 2780 put, selling (2) 2810 puts, buying 2820 put.
This is a high probability trade with max potential profit around 10% return on risk.
Order Ticket Type Asset Duration Strike C/P BTO SPX 02NOV 18 2820 Put STO X2 SPX 02NOV 18 2810 Put BTO SPX 02NOV 18 2780 Put Total Credit: 1.80 Risk Profile: 
We’re at a planned adjustment point with ADBE trading around 264
We’re going to add another round of an OCT/NOV Put calendar, centered at 260 strike
Order Ticket Type Asset Duration Strike C/P Sell To Open ADBE 19OCT 18 260 Put Buy To Open ADBE 16NOV 18 260 Put Total Debit: 2.60 Risk Profile:
We’re still aiming to make about 20-25% return on risk. If we see a move outside of the tent (see above), we’ll consider stopping out or rolling either 260 or 275 put in the direction of the move.
I am going to roll up 2980/2990 call spread up 20 points to 3000/3010 strikes.
BUY TO CLOSE 2980/2990 Bear Call spread
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 19OCT 18 2990 Call Buy To Close SPX 19OCT 18 2980 Call Total Debit: 1.75 SELL TO OPEN 3000/3010 Bear Call spread
Order Ticket Type Asset Duration Strike C/P Buy To Open SPX 19OCT 18 3010 Call Sell To Open SPX 19OCT 18 3000 Call Total Credit: 0.90 Risk Profile:
I will hold the remaining position, looking to close out in the next 14-20 days.
I’m looking to take a quick profit in this trade
Order Ticket Type Asset Duration Strike C/P Buy To Close HD 19OCT 18 210 Put Sell To Close HD 16NOV 18 210 Put Total Credit: 2.20 Risk Profile:
We’re 15 days in this trade. RUT moved from 1720 to 1703.
We’re going to remove some of the downside risk by rolling 1650 put up 10 points.
Order Ticket Type Asset Duration Strike C/P Buy To Open RUT 31OCT 1660 Put Sell To Close RUT 31OCT 1650 Put Total Debit: 1.70 Risk Profile:
We’re going to lock this trade in with 33 days to expiration
Order Ticket Type Asset Duration Strike C/P STC RUT 02NOV 18 1730 Put BTC X2 RUT 02NOV 18 1700 Put STC RUT 02NOV 18 1660 Put Total Credit: 4.30 Risk Profile:
We’re going to work towards unwinding this trade.
The first thing we’re going to do is remove 1/2 of 3000/3010 Bear Call spreads
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 19OCT 18 3010 Call Buy To Close SPX 19OCT 18 3000 Call Total Debit: 0.40 And, we’re going to remove an OTM Call hedge
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 19OCT 18 3005 Call Total Credit: 1.75
We’re going to exit this trade at 50% of credit received.
The reason this early exit makes sense is that it is easier to make the next 0.90c in a new trade than wait for the remaining 0.90c of premium to decay.
Order Ticket Type Asset Duration Strike C/P STC SPX 02NOV 18 2820 Put BTC X2 SPX 02NOV 18 2810 Put STC SPX 02NOV 18 2780 Put Total Debit: 0.90
Risk Profile:
RUT at 1666.90
RVX at 16.66We’re going to put on an income trade in 16NOV expiration cycle with 45 days to expiration.
This is a Broken Wing Put Butterfly.
We’re buying 1550 put, selling (2) 1580 puts, buying 1590 put.
This is a high probability trade with max potential profit around 10% return on risk.
Order Ticket Type Asset Duration Strike C/P BTO RUT 16 NOV 18 1590 Put STO X2 RUT 16 NOV 18 1580 Put BTO RUT 16 NOV 18 1550 Put Total Credit: 1.80 Risk Profile: 
We’re going to take this small winner and focus on a new set up
Order Ticket Type Asset Duration Strike C/P Sell To Close SPX 19OCT 18 3010 Call Buy To Close SPX 19OCT 18 3000 Call Buy To Close SPX 19OCT 18 2800 Put Sell To Close SPX 19OCT 18 2790 Put Total Debit: 0.90 We have 2 Bull Put spreads for every 1 Bear Call spread. Closing remaining put spreads as well
Order Ticket Type Asset Duration Strike C/P Buy To Close SPX 19OCT 18 2800 Put Sell To Close SPX 19OCT 18 2790 Put Total Debit: 0.30 Risk Profile:
We’re going to take a small winner here with 16 days to expiration. We have 2 Put Calendars that we’re closing:
OCT/NOV 260 Put Calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close ADBE 19OCT 18 260 Put Sell To Close ADBE 16NOV 18 260 Put Total Credit: 2.30 OCT/NOV 275 Put Calendar:
Order Ticket Type Asset Duration Strike C/P Buy To Close ADBE 19OCT 18 275 Put Sell To Close ADBE 16NOV 18 275 Put Total Credit: 3.00
Risk Profile:
RUT is trading at 1587
I’m going to stop this trade out and open a new trade with more time to expiration and strikes farther out of the money
Order Ticket Type Asset Duration Strike C/P STC RUT 16NOV 18 1590 Put BTC X2 RUT 16NOV 18 1580 Put STC RUT 16NOV 18 1550 Put Total Debit: 5.50 SPX at 2791
VIX at 19.07We’re going to put on an income trade in 07DEC expiration cycle with 50 days to expiration.
This is a Broken Wing Put Butterfly.
We’re buying 2575 put, selling (2) 2625 puts, buying 2650 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 07EC 18 2650 Put STO X2 SPX 07EC 18 2625 Put BTO SPX 07EC 18 2575 Put Total Credit: 2.00 Risk Profile: 
My stop is going to be IF/WHEN SPX trades at 2625
SPX at 2701
VIX at 23.24We’re going to put on an income trade in 07DEC expiration cycle with 45 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 10% return on risk.
Order Ticket Type Asset Duration Strike C/P BTO SPX 07DEC 18 2550 Put STO X2 SPX 07DEC 18 2525 Put BTO SPX 07DEC 18 2475 Put Total Credit: 2.30 Risk Profile: 
My stop is going to be IF/WHEN SPX trades at 2550
