... for a 5.20 credit. Notes: A 10%-er in the expiry nearest 45 days 'til expiry. Take profit at 50% max or greater; take loss at 2 x credit received. For those with smaller accounts, consider going 5-wide SPY (although it doesn't look like a January 8th expiry is open yet in SPY, QQQ, or IWM).
Short puts or short put verticals in a cash secured environment? Here's a comparison and contrast of the advantages of going short put vertical over naked put. Pictured here is a 50-wide* SPY short put vertical in the January monthly with the short option leg camped out at the 17 delta and the long 50 strikes out from there. Here would be the metrics for the...
... for a 5.00 credit. Notes: Selling 45 days 'til expiry premium in the broad market instrument with highest 30-day implied. Manage at 50% max, 2 x credit received.
... for a .52/contract credit. Notes: The scaled down version of the 10%-er in SPX (See Post Below). Manage winners via close or roll at 50% max; losers at two times credit received.
... for a 5.10 ($510) credit. Notes: Opening a spread in the December monthly that pays 10% of its width. Will look to manage at 50% max; 2 x credit received. The correspondent trade in SPY would be the December 18th 289/294, paying .51 as of the writing of this post.
... for a 5.00 credit. Notes: A ten-percenter on this weakness in the weekly nearest 45 days until expiry. 30 day at 29.4%; expiry-specific at 27.9%. Will manage at 50% max; 2 x credit received. To a certain extent, betting on post-election volatility crush.
... for a 5.10 credit. Notes: Putzing with a "10%-er." It's a 10%-er due to the fact that the credit received is 10% of the width of the spread. Here, I'm receiving 5.10 on a buying power effect of 44.90, which would be 11.36% ROC at max as a function of buying power effect (5.68% at 50% max) or 92.14% annualized at max, 46.07% at 50% max. A comparable SPY...
Pictured here is an SPX short put vertical I recently put on as an alternative to going SPY short put in cash secured environment. (See Post Below). When do one as opposed to the other and how should I manage each? First, let's compare the metrics of the two strategies, both of which are neutral to bullish assumption: they will make money at expiry if SPX/SPY...
... short put vertical for a .20 credit. Notes: Forcing a credit here via widening on the notion that this eventually recovers its footing within the longer-term range. Scratch at 16.00 even.
... for a 1.30 ($130) credit. Notes: High rank/implied. Taking a bullish assumption directional shot with the short option leg at support ... .
... for a 1.10 debit, .50 ($50) profit; scratch at 14.90. Notes: A subtractive delta adjustment trade. Net delta remains slightly long, with total position value at 14.55 versus scratch of 14.90, so I'm currently up small (.45/$45).
... for a 1.60 credit. Notes: Filled this on the 27th as a delta hedge against January short call positions, one or more of which may require duration extension into February. Longer-dated than I'd like, but going out to where the at-the-money short straddle pays greater than 10% of the underlying (which actually starts in April) and religiously collecting at...
... for a 1.60 credit. Notes: A delta hedge out in the expiry where the at the money short straddle is paying more than 10% of the value of the underlying. Scratch at 21.40. Ultimately, the hedge may be unneeded if the entirety of the January call side can be pulled off for approaching worthless (which is where most of the short delta lies), but one never...
... for a 1.60 credit. Notes: A delta hedge to replace the January cycle (29 Days 'Til Expiry) short put verticals I pulled off at near worthless earlier today. Being a bit more religious about collecting 1/6th the width of the spread than previously (for an iron condor, I'd be collecting 1/3rd the width of the widest wing for the entire setup) and going out a...
... for a .20 debit, 1.40 ($140) profit. Notes: Stripping off more near worthless put side in the January cycle. Scratch at 18.40.
... for a .20 debit, .80 ($80) profit. Notes: Peeling off January cycle put side at near worthless. Scratch at 18.60.
... for a 1.60 credit. Notes: Delta under hedge with net delta of position remaining short. Scratch at 18.80.
... for a 1.60 credit. Notes: Primarily a delta hedge for front month short delta, I'm continuing to take advantage of /CL futures term structure by shorting the front, longing the back with /CLG0 (January) trading at 59.69 versus /CLJ0 (April) trading at 58.53. Additionally, sets up nicely with the range low and collects one-sixth the width of the spread. ...