OPENING: SPY SEPT 17TH 265 SHORT PUT

... for 7.23/contract.

Notes: Rather than inverting my short straddle (See Post Below), adding a short put to delta cut instead.

Position scratch at 49.09, delta/theta -23.22/8.36.

Kommentar:

As a side note: One thing to keep an eye on with these more complex setups in which you've erected various hedges over time is extrinsic as compared to current value and scratch point. Here, remaining extrinsic is 28.73, the scratch point is 49.09, and the current setup value of 53.91. Consequently, extrinsic in the setup exceeds the difference between scratch and the current setup value (53.91 - 49.09 = 4.82). When extrinsic is less than the difference between scratch and current setup value, you may not be able to exit the setup profitably, at least in that particular cycle.

Trade ist aktiv:

Adding some long delta here by selling the Sept 20th 271 short put for 7.17 at the open. Position scratch at 56.26, delta/theta -12.55/10.99, extrinsic of 31.61.

Trade ist aktiv:

Adding some additional long delta here to totally flatten the setup to delta neutral by selling the Sept 18th 260 short put for 5.30. Scratch at 61.56. Would also note that the previous "Trade Active" posting should have shown the expiry as "Sept 18th".

Trade ist aktiv:

And all of sudden, we're net long. Selling the September 20th 345 short call for 2.50. Scratch at 64.06.