Rolling (IRA): SPY Dec 17th 175 Short Put to Dec 17th 240
... for a 1.52/contract credit.
Notes: With the December 17th 175 nearly at 50% max, rolling it up for a realized gain of around .90 ($90) to the strike paying around 1% of the strike price (the 240 is paying around 2.45 at the mid). Total credits collected of 1.81 (See Post Below) plus 1.52 or 3.33/contract. ROC at max now at 1.38% as a function of notional risk.
When I put this on at the end of last year, I fully expected to have to wait until about half way through the cycle (which would have been around some time in June) to get to 50% max, but we've had a combination of up grind plus a bit of volatility contraction that gave me an assist in reaching ~50% max earlier. Naturally, rolling up increases buying power effect, so you can naturally consider whether you should roll out instead (e.g., from the December 175 to the January 230 for instance, where the 230's paying 2.37), so that the resulting change in buying power effect is less.
Notes: With the December 17th 175 nearly at 50% max, rolling it up for a realized gain of around .90 ($90) to the strike paying around 1% of the strike price (the 240 is paying around 2.45 at the mid). Total credits collected of 1.81 (See Post Below) plus 1.52 or 3.33/contract. ROC at max now at 1.38% as a function of notional risk.
When I put this on at the end of last year, I fully expected to have to wait until about half way through the cycle (which would have been around some time in June) to get to 50% max, but we've had a combination of up grind plus a bit of volatility contraction that gave me an assist in reaching ~50% max earlier. Naturally, rolling up increases buying power effect, so you can naturally consider whether you should roll out instead (e.g., from the December 175 to the January 230 for instance, where the 230's paying 2.37), so that the resulting change in buying power effect is less.
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