Trade Updates - Week 2

stehaller (66)in #trading • 6 years ago

Hi Steemians,

two weeks ago I posted some trade ideas:
https://steemit.com/trading/@stehaller/trade-ideas-for-today-s-pop-in-implied-volatility
https://steemit.com/busy/@stehaller/more-trade-ideas-for-this-high-iv-market

and a week ago some updates:
https://steemit.com/trading/@stehaller/trade-updates

Today I wanna show you what happened to these trades this week.

1. IWM 30 Delta Short Strangle

for this IWM May 147/159 short strangle you would have collected $4.28 in net credit two weeks ago
IWM had a volatile week and the 147 short put was close to getting tested (IWM weekly low = 147.18), but only close, so no defensive actions were necessary.
using Friday's closing prices the strangle is trading at $3.21, so the trade is up $1.07 (=$107 per one lot)

source: tastyworks

2. Short 30 Delta Put in KRE

for this KRE May 58 short put you would have collected $1.06 in net credit two weeks ago.
despite the high volatility , the short put was never threatened of getting tested, so no management was necessary (KRE weekly low = 58.47)
using Friday's closing prices the short put is trading at $1.38, so the trade is down 32 cents (=$32 per one lot)

source: tastyworks

3. Broken Wing Call Butterfly in QQQ

for this QQQ May 162/165/185 BWB you would have collected $2.75 in net credit two weeks ago
QQQ had also a very volatile week, but there is still a lot of downward pressure, therefore the trade is up $2.08 (=$208 per one lot), since it is trading at 67 cents.
to convert this trade into a regular butterfly, we could buy the May 168 call and sell our long 185 call for a net debit of 95 cents and lock in a profit of $1.80 ($180 per one lot) and still have the potential of making $3 ($300 per one lot) with zero risk.

source: tastyworks

4. Iron Fly in FB

for this FB 120/160/160/200 May Iron Fly you would have collected $17.99 in net credit two weeks ago.
volatility is still pretty high in FB (IV Rank = 87.2), so the trade hasn't come in as much as I was hoping for.
using Friday's closing prices the Iron Fly is trading at $15.72, so the trade is up $2.27 (=$227 per one lot). So half way to our goal of 25% of max profit (=$4.50, $450 per one lot)

source: tastyworks

5. GLD Call Broken Wing Butterfly

for this GLD May 128/130/139 BWB you would have collected 56 cents in net credit
GLD also had a volatile week
using Friday's closing prices the BWB is trading at 17 cents, so the trade is up 39 cents (=$39 per one lot)
you could buy now the 132 call and sell the 139 call for a debit of 39 cents. This way you would lock in a profit of 17 cents ($17 per one lot) and still have the long 128/130/139 Butterfly on for free and the potential of making $2 ($200 per one lot) with zero risk, but I don't think it is worth it. So we sit and wait.

source: tastyworks

6. SPY Delta Neutral Iron Condor

for this SPY May 234/248/268/274 iron Condor you would have collected $3.87 in net credit
volatility is still pretty high (IV Rank = 39.80), due to the ongoing trade war news. Markets hate uncertainty. So the Iron Condor hasn't come in as much as I was hoping for.
using Friday's closing prices the Iron Condor is trading at $3.34, so the trade is up 53 cents (=$53 per one lot).

source: tastyworks

So let's hope we get a vol crush next week, so that we can close a bunch of winners.

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 trading week,
Stephan Haller

Legal disclaimer: These are not trade recommendations. Options involve risk and are not suitable for all investors. The trades shown below are for educational purpose only.

#busy #money #stocks #options