Weekly Trade Updates - Week 4

Hi Steemians,

here are my weekly trade updates for Friday April 20 2018.
If you haven't read my series on recent options trades, you can do it here:
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
https://steemit.com/trading/@stehaller/trade-updates
https://steemit.com/trading/@stehaller/trade-updates-week-2
https://steemit.com/trading/@stehaller/trade-updates-week-3
https://steemit.com/trading/@stehaller/important-trade-updates

Ok, now let's talk markets.
Markets rallied for over a week now, but started to sell off on Thursday:

source: tastyworks


Now let's have a look at our positions:

1. Short Put in KRE:

• KRE hit our profit target of 50% of max profit today, so I took it off for 50 cents
• since we sold this put for $1.06 we made a nice profit of 56 cents ($56 per one lot)
  
  source: tastyworks

2. Broken Wing Butterfly in GLD:

• our May 128/130/139 BWB in GLD traded for only 12 cents today, so I took it off
• since we collected 56 cents when we initiated this BWB, we made a profit of 44 cents ($44 per one lot)

source: tastyworks

3. Broken Wing Butterfly in QQQ:

• Nasdaq 100 also sold off the last two days
• our May 162/165/185 BWB in QQQ traded for 69 cents, so I took it off
• since we collected $2.75 when initiating this trade, we pocketed a nice profit of $2.06 ($206 per one lot)
  
  source: tastyworks
  
  

4. New Broken Wing Butterfly in QQQ in June:

• since we got a nice pop in implied volatility yesterday and today and we freed up a lot in buying power and since I like having on short deltas in QQQ, I reestablished our QQQ BWB in June
• I sold the QQQ June 162/165/185 for a net of $1.93 ($193 per one lot)
• the max risk/buying power reduction on this trade is $1,507 and our max profit is $493
• the trade gives us 32 short deltas and 3.53 in daily theta decay
• the trade has a probability of profit of 70%
• our goal is to manage this trade at 25% of max profit ($123.25), so we buy it back or butterfly it off, when it's trading for 70 cents
• if we only have 21-23 days until expiration, we close or roll, in order to get rid off the gamma risk
  
  source: tastyworks
  
  

5. XLE Straddle:

• XLE had a huge rally, because it is highly correlated to the price of oil
  
  source: tastyworks
• our break even (74.67) was close to getting breached, but only close
• the trade is a small loser (23 cents) at the moment, so we sit and wait
• next week we hit our 21-23 DTE threshold, so I definitely will close or roll the trade by the end of next week
  
  source: tastyworks
  
  

6. IWM Strangle:

• our strangle became a little long, due to the sell off in IWM, but nothing to worry about
• at the moment the trade is a small loser (25 cents), so we sit and wait
  
  source: tastyworks
  
  

7. SPX Put Calendar:

• due to the sell off in SPX our strikes were breached, but since IV rallied, the trade is only a 10 cents loser at the moment. Nothing to worry about, so we sit and wait
  
  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 above are for educational purpose only.