Weekly Trade Updates - Week 34

Hi Steemians,

here is my weekly sample portfolio update.
Today we hit the 21 DTE threshold, so I closed all my December positions this week and opened new ones in January.

GLD Short Straddle in January

source:tastyworks

I sold this straddle on November the 20th, 2018 and collected $4.05 for this straddle.
My profit target, as always for short straddles, is 25% of max profit ($1.01).
At the moment this position is up 76 cents ($76 per one lot)

Scratching XLE December Straddle

source:tastyworks
I collected $3.79 for this straddle.
On November the 28th, 2018 I scratched it.
So no profit and no loss for this one.

New XLE Straddle in January

source:tastyworks
On November the 28th, 2018 I sold a new XLE January 66 straddle for $4.75.
In my latest book I introduced a new method of managing short strangles and straddles.
The new profit target for strangles is not the static 50% of max profit number or 25% of max profit for short straddles, but a more dynamic number, where the market finds the profit target for you.
From now on I'm using the 16 delta strangle credit as the profit target for higher delta strangles and straddles.
So let's have a look at the 16 delta strangle:

source:tastyworks


So for this XLE 66 straddle the profit target is $1.09.

How to find the closing price without using a calculator
When you set up your short straddle in the tastytworks platform, you just add the 16 delta wings to find the closing price.

source:tastyworks


So when the XLE Jan 66 straddle trades for $3.66 I will buy it back to realize a profit of $109 per one lot.
At the moment my short straddle is down 6 cents ($6 per one lot= as you can see in the picture below.

source:tastyworks

Closing IWM December Short Straddle

source:tastyworks
I collected $7.63 for this straddle.
On November the 28th, 2018 I closed it for a profit of 79 cents ($79 per one lot).

New IWM Short Straddle in January

source:tastyworks

On November the 28th, 2018 I sold this straddle for $9.14.
The 16 delta strangle was trading for $2.
So I'm going to close this short straddle when it trades for $7.14 or at 21 DTE.
At the moment this position is up 32 cents.

FXE Short Straddle in January

source:tastyworks

I sold this straddle on November the 20th, 2018 and collected $2.72 for this straddle.
My profit target is 68 cents.
At the moment this position is up 40 cents ($40 per one lot)

Closing TLT December Straddle

source:tastyworks

I collected $3.02 for this straddle.
On November the 20th, 2018 I closed it for a profit of 17 cents ($17 per one lot).
The IVR in TLT is so low at the moment, so no new position so far.

Managing Aggressive Short Delta Strangle in QQQ

On November the 20th, 2018 my upside break even was hit, so I rolled the put up to the 160 strike for a credit of $2.20 as you can see in the picture below.

source:tastyworks

My overall credit for this new position is $9.84.
My management target is still $2.84, so I'm going to close this position when it trades for $7.84.
At the moment this position is down $4.34 as you can see in the picture below.

source:tastyworks

New Short Straddle in EWW

source:tastyworks


I sold this straddle for $3.91.
The 16 delta strangle was trading for 79 cents.
This is also my profit target.
So I'm going to close this short straddle when it trades for $3.12 or at 21 DTE.

New Short Straddle in KRE

source:tastyworks


I sold this straddle for $3.47.
My profit target for this position is 80 cents ($80 per one lot)
So I'm going to close this short straddle when it trades for $2.67 or at 21 DTE.

Books Update

My second book will be available for free on Amazon, Google and on Apple for the rest of 2018.

To fully understand my new book, you need to understand all the basics, which I describe in my first book:

It is still available at huge discount on Google Play, so buy as long as it is still cheap.
You can also buy it on iTunes, Amazon or Barnes and Nobel.

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.