SPDR Select Sector Fund - Energy Select SectorArca
Beschreibung
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Long via Jun15/Mar16 diagonal for $4.37
POP: 50% Max Loss: $4.37 Stop Loss: Price at $64.40 Max win: As of right now, $263 Target: Price at $75
Long Jun15 $66 call: 61 delta Short Mar16 $73 call: 14 delta.
I structured this trade to give me the most profit as close to my target as possible (in the case it shoots straight up), while still having a positive theta trade. For reference try to match the thetas of both options up for choosing a strike for your short.
I will continue to roll the short call each cycle to continue to eliminate basis as well.
Trade ist aktiv
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Added to this position on the strength on a pullback.
Feb23 66/67 short put spreads @ $.25
short $67 put: 38 delta long $66 put: 26 delta
Max win: $50 Max loss: $150
Likely to let these expire worthless, but if we get a sharp reversal through my stop - I'll try to salvage a little bit of them.
Trade ist aktiv
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Price is continuing to get favorable, so I am going to dabble just a bit more. I also moved up my stop level to help reduce any risk.
I added a risk reversal for June15 expiration. long $53 put: 7 delta short $65 put: 33 delta long $72 call: 35 delta
Overall trade was for $.04 credit.
Stop loss: Price at $66.50 Target: $72
Trade ist aktiv
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Still working with trying to keep this trade neutral to positive theta.
Sold the Apr20 54/64 put spread ($.91 cr) to reduce basis a bit further. This looks to be under some short term support here.
short 64 put: 25 delta long 54 put: 5 delta
Max loss: $909 Stop loss: 2.5x cr received Target: 50% cr received.
Kommentar
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I've also added a synthetic strangle here to capture some high IV/theta in the process.
Sold Apr20 60/66/72/78 iron condor for $1.69
POP: 51% DTE: 62 Max Loss: $431 Max Win: $169 Stop loss: $338 Target: 50% of cr received
long 60 put: 13 delta short 66 put: 32 delta
short 72 call: 25 delta short 78 call: 8 delta
Trade ist aktiv
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The original $73 call on the core call spread position had widdled down significantly over this time and small down move. I rolled it out to the Apr20 $73 call for add'l $.26. The basis on that spread is now $4.11.
Trade ist aktiv
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Feb23 66/67 put spreads expired worthless, $50 profit.
Trade geschlossen: Stop wurde erreicht
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Stopped out of the risk reversal trade here for $1.28 db, $132 loss.
I like the slightly theta positive approach to these, something I haven't thought of before. Traditionally, I've done these 90/30, with the long at the 90, the short at the 30. Doing things that way, however, is more BP heavy: the June 55/March 70.5 would cost 11.90-ish to put on at the mid with 61.42 long delta and a theta of 1.58, with a take profit of 10-20% of the debit you put it on for ... . Seems like a lot of risk to minimize the amount of extrinsic in the long.
Benji
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@NaughtyPines, Interesting. I am trying to find ways to get long for medium to long term plays, so I am open to suggestions. At least when IV is high, I think you should still sell something OTM because of the skew curves. In other cases, you could argue that it probably isn't necessary to sell anything against your long because you only need it to move a few cents/day on average to keep the theta numbers in check anyhow.