Important Delta Adjustments

Hi Steemians,

marktes keep rallying like there is no tomorrow.
Especially the Nasdaq:

source: tastyworks


Because of the ongoing rally my portfolio is getting too short.
So I had to make some delta adjustments.


TWTR Short Strangle:
My short 33 call was breached today.

source: tastyworks


To reduce my short deltas and collect more credit,I rolled up my short 26 put to the 33 strike and created a short straddle.

source: tastyworks


I collected $1.41 in additional credit, so my overall credit for this June 33 short straddle is now $3.04 ($1.63 + $1.41)

source: tastyworks


At the moment the position is down 61 cents (61 per one lot).


FB Short Strangle:

source: tastyworks


My short call in FB is not breached, but the short put is basically worthless (price = 20 cents) and since my portfolio is too short, I rolled up the 155 put to the 170 strike, in order to reduce my short deltas and to collect an additional 79 cents in credit.

source: tastyworks


Here is my adjusted FB strangle:

source: tastyworks


My net credit on this position is $3.21, so the position is down 53 cents ($53 per one lot) at the moment, since the FB June 170/190 strangle is trading for $3.74 at the moment.


QQQ Short Call:

source: tastyworks


This is the biggest loser at the moment.
We collected $4.10 for this short call, so the position is down $5.26 ($526 per one lot).
I took the position on as a short delta hedge against my short vega risk.
But I'm getting way too many short deltas, so I sold the 161 put against it and created a short straddle.

source: tastyworks


The new QQQ June 161 short straddle looks like this:

source: tastyworks


As you can see, this is still a short delta position (58.68 short deltas), but the additional credit gives me a little more room and makes the position less directional.
But the loss at the moment is still the same.

The other positions are doing fine, so no further adjustments needed.
Let's hope the markets will come down a bit during the next days.

If you want to learn more about options trading you have to wait, until my book comes out.
Stay tuned and watch https://www.tastytrade.com/tt/

I wish you a great trading day,

Stephan Haller

Legal disclaimer: These are not trade recommendations. Options involve risk and are not suitable for all investors. The trades shown above are for educational purpose only.