Post Vacation Trade Updates
Hi Steemians,
I came home this evening from my vacation in Bulgaria and immediately closed some positions while the markets were still open.
I was about time, since tomorrow we will hit our 21 DTE threshold.
So time to close or roll.
I also opened several new positions.
So let's have a look at all the trades I made today.
Closing GLD Inverted Strangle
I collected $4.88 for this inverted strangle.
Today I closed it for $4.87.
So basically a scratch, which is always a success after the trade went against you, so that you had to go inverted.
New GLD Short Straddle in October
I collected $3.42 for this straddle.
My profit target, as always for short straddles, is 25% of max profit (86 cents).
So I'm going to close this position when it trades for $2.56 or at 21 DTE.
Closing Short Straddle in TLT
I collected $3.63 for this straddle.
Today I closed it for a debit of $2.60.
A nice $1.03 winner ($103 per one lot)
New October Short Straddle in TLT
I collected $3.11 for this straddle.
My profit target, as always for short straddles, is 25% of max profit (78 cents).
So I'm going to close this position when it trades for $2.33 or at 21 DTE.
Closing Inverted Strangle in FXE
My overall credit for this position was $3.78.
Today I closed it for a debit of $3.86.
So a 8 cent loser ($8 per one lot)
New October Straddle in FXE
I collected $2.43 for this straddle.
My profit target, as always for short straddles, is 25% of max profit (61 cents).
So I'm going to close this position when it trades for $1.82 or at 21 DTE.
Closing Straddle in XLE
I collected $2.91 for this position.
Today I closed it for a debit of $2.98.
So a small 7 cents loser ($7 per one lot)
New October Straddle in XLE
I collected $3.53 for this straddle.
My profit target, as always for short straddles, is 25% of max profit (88 cents).
So I'm going to close this position when it trades for $2.65 or at 21 DTE.
New October 30 Delta Strangle in IWM
I collected $3.30 for this strangle.
My profit target, as always for short strangles, is 50% of max profit ($1.65 cents).
So I'm going to close this position when it trades for 1.65 cents or at 21 DTE.
Book News
I had to redesign my book. I finished it before my vacation. Now it is (again) in review.
We'll see how they like it this time.
I will give you a complete update of my portfolio tomorrow.
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.
fast vaccation :D hope you recovered well.
Can I ask what do you use to callculate leverage if you use any significant or in general for bet-size? Rule of thumb or formula like Kelly?
It depends on your account size.
I try to collect at least 0.1% in theta per day.
So in a $100k account, $100 in theta per day.
I never use more than 50% of my account.
Depending on IVR, I use 20% in low IVR and up to 50%, in very high IVR.
I also try to use the same buying power reduction for every underlying.
But more on portfolio management in my upcoming book.
There are also example portfolios for low and high IVR in the book.
And some examples on how to manage trades going against you and how to hedge your short vega risk with short deltas.