OPENING (IRA): SPY JUNE 21ST 245 SHORT PUT
Updated
... for a 2.60 credit.
Notes: Targeting the short put strike in June paying at least 1% of the strike price in credit (See Post Below). Roll up intraexpiry at 50% max with > 45 days until expiry; pull off on approaching worthless and/or sell call against if assigned.
I would note that you will not make squat with this type of setup if you just set and forget it and everything expires worthless, since your ROC %-age is around 1% at max on fill in a cash secured environment. Consequently, you will have to monitor these positions and roll up the short puts at appropriate junctures in order to collect more credit and get a better ROC %-age as a function of notional risk and/or sell call against if assigned.
It is also probably better to deploy over time and on red days to take maximal advantage of implied volatility/heightened premium. I'm opting for being somewhat lazy here as I approach retirement, where I value my free time more than my screen time, so am looking for a setup that is minimally invasive of my time, does what I generally need it to do from an ROC %-age perspective, and keeps my buying power engaged and working for me, even if theta decay is slow.
Notes: Targeting the short put strike in June paying at least 1% of the strike price in credit (See Post Below). Roll up intraexpiry at 50% max with > 45 days until expiry; pull off on approaching worthless and/or sell call against if assigned.
I would note that you will not make squat with this type of setup if you just set and forget it and everything expires worthless, since your ROC %-age is around 1% at max on fill in a cash secured environment. Consequently, you will have to monitor these positions and roll up the short puts at appropriate junctures in order to collect more credit and get a better ROC %-age as a function of notional risk and/or sell call against if assigned.
It is also probably better to deploy over time and on red days to take maximal advantage of implied volatility/heightened premium. I'm opting for being somewhat lazy here as I approach retirement, where I value my free time more than my screen time, so am looking for a setup that is minimally invasive of my time, does what I generally need it to do from an ROC %-age perspective, and keeps my buying power engaged and working for me, even if theta decay is slow.
Trade active
With the June 245 now worth 1.45 or so, rolling up on this bit of weakness here for a realized gain of around 1.15 to the June 283 for a 1.35 credit. Total credits collected of 3.95/1.33% ROC at max as a function of notional risk.
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