Weekly Trade Updates - Week 7:

Hi Steemians,

here are my weekly trade updates for Friday May 11th 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
https://steemit.com/trading/@stehaller/weekly-trade-updates-week-4
https://steemit.com/trading/@stehaller/weekly-trade-updates-week-5-taking-off-winners-and-new-trades
https://steemit.com/trading/@stehaller/5vvwcj-important-trade-updates
https://steemit.com/trading/@stehaller/weekly-trade-updates-week-6
https://steemit.com/trading/@stehaller/important-delta-adjustments

Markets kept rallying for the whole week:

/ES:

source: tastyworks


/NQ:

source: tastyworks


/RTY:

source: tastyworks


/VX:
Volatility-Futures sold off subsequently.

source: tastyworks


/ZB:
Bonds stayed basically flat.

source: tastyworks


XLE Short Straddle:

source: tastyworks

We collected $4.05 on this trade, so we are down 23 cents ($23 per one lot).


IWM Short Strangle:

source: tastyworks

We collected a credit of $3.25 for this strangle.
So we are up $1.21 ($121 per one lot).


QQQ Long (free) Butterfly:

source: tastyworks

This is a leftover from our BWB, after butterflying it off and locking in a profit of 83 cents.
So we are up on this trade by $1.14 ($114 per one lot) with zero risk (actually we have a guaranteed profit of 83 cents).


QQQ Short Straddle:

source: tastyworks

I sold the 161 put yesterday against the short 161 call, to reduce deltas and collect more credit.
The overall credit for this short straddle is $5.20, so this position is a $5.19 ($519 per one lot) loser at the moment.


TLT Short Straddle:

source: tastyworks

We collected $3.13 on this trade, so we are up 62 cents ($62 per one lot).
Our profit goal on this trade is 78 cents, so we are going to close it, when it trades for $2.35, which can easily happen early next week.


GLD Short Strangle:

source: tastyworks

We collected $1.56 on this trade, so we are up 49 cents ($49 per one lot).


TWTR Short Strangle:

source: tastyworks

I had to roll up the put to the 33 strike and create a short straddle, since the short 33 call was breached yesterday. My overall credit for this trade is $3.04, so the trade is down 35 cents ($35 per one lot) at the moment.


FB Short Strangle:

source: tastyworks

The deltas on this position and on my overall portfolio got a little too short, so I rolled up the put to the 170 strike yesterday. The overall credit on this short strangle is $3.21, so the position is down 93 cents ($93 per one lot) at the moment.


All in all a pretty bad week, due to the one way markets.
But that is what is supposed to happen once in a while.
By selling premium and managing your winners properly, we should have a win rate between 80% and 90% and not 100%.
It is just important to stay mechanical and manage your deltas properly.

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 day,

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.