Diary | 3/4/2020 | SPX SpreadJustification:
Directional Play: Dynamic short delta play. Capitalizing on high IV. Will look to the put side if the opportunity presents itself.
Technical: Above 61.8% retracement.
Fundamental: Fed cut rates; consumer fundamentals in a good place; goods trade deficit contracted; manufacturing business outlook recently rose to it's highest levels, but virus and future trade issues may cause a hit; housing market hot as home building permits rise to highest levels; world supply chains at risk due to this virus thing; global yields have generated massive inflows in passive indices that are heavily weighted towards a few stocks; insane speculation in the derivatives market.
If/Then:
Take profit? 50% of credit received
Where will you hedge? $3225
Strategy Details:
Short and Long leg: $3225, $3445
Short Leg Delta: 0.13
Duration: March 20
Disclaimer:
This is a page where I look to share knowledge and keep track of trades. If questions, concerns, or suggestions, feel free to comment. I think everyone can improve (myself especially), so if you see something wrong, speak up.
