Weekly Trade Update - Week 29
Hi steemians and option traders,
another rough week in the markets.
Lot's of rolling and delta adjustment again and on Friday the 21 DTE threshold was hit, so I closed all of my positions and established new ones.
So let's go right to my positions.
Closing GLD Short Straddle in November
I collected $3.41 for this straddle.
On Friday I closed it for a debit of $3.62, so a small loss of 21 cents ($21 per one lot).
New GLD Short Straddle in December
I collected $4.23 for this straddle.
My profit target, as always for short straddles, is 25% of max profit ($1.05).
So I'm going to close this position when it trades for $3.17 or at 21 DTE.
XLE 30 Delta Short Strangle in November
I collected $3.46 for this short straddle.
On Friday I closed it for a debit of $8.13. So a big loss of $4.67 ($467).
New XLE 30 Delta Short Strangle in December
I collected $2.77 for this short strangle.
My profit target, as always for short straddles, is 50% of max profit ($1.39).
So I'm going to close this position when it trades for $1.39 or at 21 DTE.
Closing IWM Position
This was my IWM position of last week:
The down move continued, so I closed the 155 call:
And rolled down the remaining short call:
So I ended up with the following position:
On Friday I closed it for a debit of $20.82.
So a big loser of $5.27 ($527).
This is a great learning experience demonstrating the power of rolling down the untested side.
Remember this position started out as a November 165/174 short strangle for which I collected $3.28.
So let's have a look how big my losses would have been, had I done nothing:
So by doing nothing, I would have lost $8.47 more!
New Short Strangle in IWM in December
I collected $5.34 for this short strangle.
My profit target, as always for short strangles, is 50% of max profit ($2.67).
So I'm going to close this position when it trades for $2.67 or at 21 DTE.
Closing Inverted FXE Short Strangle in November
I collected $3.45 for this position.
On Friday I closed it for a debit of $4.30.
So a 55 cents ($55 per one lot) loser
New Short Straddle in FXE in December
I collected $2.71 for this straddle.
My profit target, as always for short straddles, is 25% of max profit (68 cents).
So I'm going to close this position when it trades for $2.03 or at 21 DTE.
Closing Inverted Strangle in TLT
I collected $4.52 for this inverted strangle.
On Friday I closed it for a debit of $5.17.
So a 65 cents ($65 per one lot) loser.
New Short Straddle in TLT in December
I collected $3.85 for this straddle.
My profit target, as always for short straddles, is 25% of max profit (96 cents).
So I'm going to close this position when it trades for $2.88 or at 21 DTE.
Closing EWZ November Short Straddle
I collected $5.41 for this straddle. So a small winner of 12 cents ($12 per one lot).
New Short Strangle in QQQ in December
I collected $6.80 for this short strangle.
My profit target, as always for short strangles, is 50% of max profit ($3.40).
So I'm going to close this position when it trades for $3.40 or at 21 DTE.
QQQ Broken Wing Call Butterfly in December
I collected $2.01 for this BWB. The max profit is $7.01 ($701 per one lot).
As always for broken wing butterflies my profit target is 25% of max profit ($175).
So I'm going to close this position when it trades for 26 cents or at 21 DTE.
All in all pretty tough weeks, but if you compare my portfolio to an all long stock portfolio, you can see how strong a uncorrelated short premium portfolio really is.
Especially actively managing my deltas helped a lot.
Please buy my book if you want to learn how to sell premium
Have a great weekend,
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.