Closed: ARKK July 15th 34/56 Short Strangle... for a 1.41 debit.
Comments: In for 1.89 (See Post Below), out for 1.41. .48 ($48) profit, 25% of max. Money, take, run ... .
Shortstrangle
Closed: QQQ June 17th 294/300 Short Strangle... for a 14.77 debit.
Comments: (Late Post from Friday). Collected a total of 15.53. (See Post Below). Rolled out or sides in a few times and figured I'd get out while the getting was good. .76/$76 profit.
Here's the full series of rolls/adjustments:
Opened: QQQ 27th May 315/380 for a 6.20 credit. (Delta neutral).
Rolled: QQQ May 27th 315/380 to June 17th 294/350 for a 1.33 credit. (Realized gain roll; recentering)
Rolled: QQQ June 17th 380 to June 17th 310 for a 4.80 credit. (Rolling untested side in).
Rolled: QQQ June 17th 310 to June 17th 300 for a 3.20 credit. (Rolling untested side in).
Closing: XRT June 17th 59/67 Short Strangle... for a 2.52 debit.
Comments: Collected a total of 2.74 (See Post Below). Opted to close it out here for a .22 ($22) winner versus rolling it out for duration and credit.
Closed: IWM July 1st 173/194 Short Strangle... for a 4.58 debit.
Comments: Plain Jane profit-taking. Collected a total of 6.33 in credits. (See Post Below). Closing out here results in a net profit of 1.75 ($175).
Opened: ARKK July 15th 34/56 Short Strangle... for a 1.89 credit.
Comments: Selling premium in the exchange-traded fund with the highest IV on the board. As usual, will manage sides on approaching worthless , side test, or a delta/theta ratio of >1.00.
1.89 credit on BPE of 4.26 (on margin); 44.4% ROC as a function of buying power at max; 22.2% at 50% max.
Rolling: IWM July 1st 158 Short Put to July 1st 173... for a 1.64 credit.
Comments: Rolling up the short put aspect of my July 1st IWM short strangle, the short call of which is at the 194 to cut the delta/theta ratio to around 1:1. Total credits collected of 6.33.
It's now delta/theta -12.03/14.85.
Rolling: NVDA June 17th 170C/275P to July 17th 170P/195C... for a 92.02 debit.
Comments: Now that the underlying has done its "earnings move," I'm uninverting and rolling for a debit that is less than the total credits I've collected so far (95.25). I generally don't like to make a habit of doing this, but with both legs in the money and with the 275 somewhat illiquid (and therefor a pain to roll), I'm doing it here. Still 3.23 net credit to date.
Rolled: IWM June 17th 165/200 Short Strangle to July 1st 158/194... for a .90 credit.
Comments: Locking in some realized gain here on this little bounce, recentering side risk, and receiving a credit all at the same time. I rolled both sides to the 16 delta strikes, so that the position is back to delta neutral.
Total credits received of 4.69, relative to a current short strangle price for the July 1st 158/194 of 3.28, so I'm up 1.41 ($141) on the position.
Rolled: NVDA June 17th 200 Short Call to the 170 Short Call... for a 9.21 credit.
Comments: Late post that I was unable to get to yesterday ... . Doing a defensive roll ahead of earnings to reduce directionality in the event it continues on its path downward. I also took off the June 17th 225 short call, which I added in to reduce net delta and reduce cost basis further for an .82 debit, but didn't want to leave it on in the event price rips up, as it could complicate the setup and/or rolling. Total credits collected of 95.25 on a 105-wide inverted.
Functionally, I'm long stock at 275, but with a current cost basis of the strike price (275) - total credits collected (95.25) or 179.75, so the short call is currently below my cost basis, which I'm okay with at least temporarily. Post earnings, I'll look to roll out the inverted as a unit, reducing cost basis further (although this trade is getting quite long in the tooth).
I've indicated that it's long, not because that is my sentiment as to where the stock goes from here, but because delta/theta is 42.95/34.32.
Closing: SMH June 17th 198/270 Short Strangle... for a 3.43 debit.
Comments: Filled for a 5.55 credit (See Post Below). Taking 2.12 ($212) worth of profit here ... .
Rolled: IWM June 17th 210 Short Call to 200 ... for a .56 credit.
Comments: Although the 165 hasn't been tested, the 210 is converging on worthless, so rolled it down a smidge. Total credits collected of 3.79.
Rolling: XBI June 17th 79 Call to 71... for a 1.72 credit.
Comments: Inverting here. Total credits collected of 7.33 on a 5-wide inversion (71C/76P). The best outcome for this would be a finish between 71 and 76, but the most I can hope to make on it would be the total credits collected of 7.33 minus the width of the inversion (5.00) or 2.33.
Opening: SMH June 17th 198/270 Short Strangle... for a 5.55 credit.
Comments: High IVR/high IV (80/46). Selling the 15 delta strikes on both sides. 5.55 credit on buying power effect of 23.58; 23.5% ROC as a function of buying power effect at max; 11.8% ROC at 50% max. As usual, will look to take profit at 50% max and/or manage sides on approaching worthless/side test.
Opening: XRT June 17th 59/82 Short Strangle... for a 2.00 credit.
Comments: High IVR/IV at 91/52. Selling the 16 delta strikes on both sides. Will look to take profit at 50% max; manage sides on approaching worthless/side test. 2.00 credit on buying power effect of 7.10; 28.2% ROC as a function of buying power effect; 14.1% at 50% max.
Rolling: XBI June 17th 110 Short Call to the 79 Short Call... for a 2.17 credit.
Comments: Rolling the untested side in. Total credits collected of 3.44 (See Post Below) plus the 2.17 here for a total of 5.61.
Closed: SMH May 20th 215/280 Short Strangle... for a 3.44 debit.
Comments: Filled for a 5.20 credit (See Post Below). Out here for 3.44; 1.76 ($176) profit.
Rolling: QQQ May 27th 315/380 to June 17th 294/350... for a 1.33 credit.
Comments: Rolling out and recentering risk. Total credits collected of 7.53.
Rolling: NVDA May 20th 205C/280P to June 17th 200C/275P... for a 4.48 credit.
Comments: Ugh. Just ugh. Total credits collected of 82.11 on a 75-wide inverted. Break evens at 192.89/282.11.
Rolling: IWM May 20th 176/217 to June 17th 165/210... for a 1.26 credit.
Comments: Kind of neglected this position a bit, so rolling out, recentering risk instead of rolling down the call side to flatten net delta with 21 days to go. Total credits collected of 3.23.
Rolled: NVDA May 20th 220 Short Call to May 20th 205... for a 5.45 credit.
Comments: This ... is getting kind of ugly in here. In any event, in for a penny, in for a pound. I also closed out the 290 short call I put on as a delta flattener, since it only had about .25 left of extrinsic left in it and since we're closing in on that 21 day mark where I might want to consider rolling out, particularly where the short put is closing in on almost having no extrinsic left in it.
Total credits collected of 77.63 on a 75-wide (280P/205P) with 202.37/282.63 break evens.
Rolling: XBI May 20th 75/105 Short Strangle to June 76/110... for a 1.09 credit.
Comments: A different way to do a delta adjustment when your setup is in profit ... . Locking in the realized gain of the May 20th setup while returning the position back to net delta neutral and improving break evens. Total credits collected of 2.35 (See Post Below) plus the 1.09 here, for a total of 3.44 relative to a current value for the June 17th 76/110 of 2.72, so I've realized gains of about .72 ($72) so far.
IVR/IV is still pretty decent in here at 53/42.6%.
Opening: QQQ May 27th 315/380 Short Strangle... for a 6.20 credit.
Comments: Selling 16 delta-ish strikes on both sides after closing out my previous QQQ position for a small winner. 6.20 credit on buying power effect of 41.91 (on margin); 14.8% ROC at max; 7.4% ROC at 50% max. Delta/theta .37/17.
Closed: QQQ April 22nd 354C/356P... for a 14.10 debit.
Comments: Well, there's my "more than a buck." Total credits collected of 15.64. Closing out here for 14.10 results in a realized gain of 1.54 ($154) with 14 days to go.
Here's the blow by blow:
Opened: QQQ April 22nd 290/361 for a 5.85 credit.
Rolled: QQQ April 22nd 290 Short Put to the April 22nd 341 for a 3.95 credit. (Defensive roll, cutting net delta in half).
Rolled: QQQ April 22nd 341 Short Put to the April 22nd 348 for a 1.15 credit. (Defensive roll, cutting net delta in half).
Rolled: QQQ April 22nd 348 Short Put to the April 22nd 356 for a 1.95 credit. (Defensive roll, cutting net delta in half).
Rolled: QQQ April 22nd 361 Short Call to the April 22nd 354 for 2.74 credit. (Defensive roll, cutting net delta in half).
As you can see in 20-20 hindsight, I probably could've just left the original setup alone and been better off. The April 22nd 290/361 -- the original, unadjusted setup -- is marking at 2.88 at the moment, so I would've hit 50% max at some point. That being said, I generally operate on the assumption that you never know if the position will continue to move against you or not and that it's best to adjust sooner than later.
