Trade Updates - Week 3 and A New Trade

Hi Steemians,

three 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 two week ago some updates:
https://steemit.com/trading/@stehaller/trade-updates

and a week ago some more updates:
https://steemit.com/trading/@stehaller/trade-updates-week-2

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 three weeks ago
• in IWM volatility came down this week a lot and we were able to take off our short strangle for over 50% of max profit.
• We were able to buy to close the IWM strangle for $1.98, so we made a nice profit of $4.28 - $1.98 = $2.30(= $230 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 three weeks ago

• the price of KRE moved up the whole week, but today it had a huge sell off (1.55%)

• despite the down move today the trade is up 24 cents ($24 per one lot), since it is trading for 82 cents

• the trade hasn't reached our 50% profit target, so we sit and wait
  

  
  
  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 three weeks ago

• the IV in QQQ came down a lot this week, which helped our BWB.

• based on today's closing prices the BWB is trading at 84 cents, so the trade is up $191

• the BWB hasn't reached our profit target yet, so we sit and wait
  

  
  
  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 creditthree weeks ago

• Implied volatility in FB came down this week, but is still pretty high in FB (IV Rank = 78%), because we are nearing the earnings announcement.

• since I want to avoid any earnings risk, I took the trade off today for $14.39. So we made a profit off $17.99 - $14.39 = $3.60 ($360 per one lot)

• not exactly the 25% of max profit, which would have been $450, but I'm happy with the profit we made
  

  
  
  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 three weeks ago
• GLD had a huge up move two days ago, but the price came down recently
• IV rank is still pretty high in GLD (51%)
• using today's closing prices the BWB is trading at 36 cents, so the trade is up 20 cents (=$20 per one lot)
• we wait for another week
  
  
  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
• we experience a huge vol crush in SPY this week (despite the war drums),which helped our iron condor a lot
• using today's closing prices the Iron Condor is trading at $2.95, so the trade is up 92 cents (=$92 per one lot).
• the trade hasn't reached our 50% profit target, so we sit and wait
  
  
  source: tastyworks

We freed up some buying power today, so I was looking for some new trades.
IV rank is pretty high in the oil sector.
So we go there for our new trade.


Short Straddle in XLE

• sell to open the May 71 put
• sell to open the May 71 call
• credit of $3.67
• buying power reduction $1,430.60
• profit target 25% of max profit (=$0.92 = $92 per one lot)
• stop loss = 1.5 x credit received = $5.50, so close if it trades at $9.17
• break evens 67.33 to the downside and 74.67 to the upside
• if one of the break evens is breached roll the untested side up to the new atm strike and go inverted
  
  
  source: tastyworks
  
  
  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 weekend,
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.