Trade Updates - Closing another Winner and a new Position
Hi Steemians,
the FOMC minutes release is over. I don't know what the FED said and I don't care, since I never watch or read any financial news. IV in bonds came down, so I had the chance to close another winning positions in TLT and add a new position in the RUT.
Closing TLT short straddle:
I collected $3.13 for this short straddle. Today I was able to close it for a debit of $2.38.
So I made a profit of 75 cents ($75 per one lot). Almost exactly at the 25% profit target for short straddles.
Id love to add a new position in TLT, but IV rank is so low at the moment, so I rather wait for a better opportunity.
RUT Put Calendar Spread
IV rank is so low at the moment, so I go for a long vega trade.
I'm buying a 50 delta Jul/Aug put calendar spread in the RUT for a debit of $9.00.
My profit target on this trade is 10% of debit paid, so 90 cents ($90 per one lot)
Let's hope for a pop in implied volatility, because it is real hard at the moment to sell premium.
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 evening,
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.