Another Trade Update - Delta Adjustment in XLE and new Position in SPY
Hi again steemians,
markets keep selling off all over the place.
I had to make another delta adjustment in XLE, since the put strike of my September 73/78 short strangle got breached.
So I had to roll down the call side to the new atm strike.
I collected $1.50 for the original short strangle.
With the additional credit of $1.41, the credit for this September 73 short straddle is $2.91.
But my original profit target of 75 cents hasn't changed, so I'm going to close this straddle when it trades for $2.16 or at 21 DTE.
At the moment the position is down 63 cents ($63 per one lot).
New Broken Wing Butterfly in SPY
Since I'm always short a lot of vega I get hurt on days like today, since markets go down and implied volatility expands.
Therefore I always carry a little short deltas, like the BWB in QQQ I have on.
But I need more short deltas.
Therefore I sold a broken wing butterfly in SPY.
My profit target on this trade is 25% of max profit ($1.05).
So I'm going to close this trade when I can close it for a debit of $1.14.
Good luck trading,
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.