We're opening the following position to hedge our upside exposure:
Day limit order
Buy to open 2 SPY May 143 calls
Sell to open 2 SPY Apr 143 calls
for a net debit of $0.83...
Friday, April 13, 2012
We’re adding the following downside hedge position ahead of expiration week: Day limit orderBuy to open 3 SPY Apr 137 putsSell to open 6 SPY Apr 135 putsBut to open 3 SPY Apr 132 putsfor a net debit of $0.23 or better. Note that the 3 contracts specified above for the “wings” (outer strikes) represent 3 times the number of contracts per leg in BF (now condor) #1 and 1-1/2 times the number allocated to our…
Thursday, April 12, 2012
We’re closing the bearish side of this position and selling an out-of-the-money call vertical, with the following iron-condor order: Day limit orderBuy to open 2 SPY Apr 144 callsSell to open 2 SPY Apr 142 callsSell to close 2 SPY Apr 137 putsBuy to close 2 SPY Apr 133 putsfor a net credit of $0.59 or better. Note that the 2 contracts per leg specified above represent the number of contracts we’re currently long at…
Tuesday, April 10, 2012
We’re continuing to sell volatility into the upswing, and using these trades to offset our bullish delta. This afternoon we’re opening the following position: Day limit orderBuy to open 2 SPY 137 putsSell to open 4 SPY 133 putsBuy to open 2 SPY 129 putsfor a net debit of $0.92 or better. Note that the 2 contracts specified above for the outer strikes represent the same number of contracts currently allocated to our open April/May 136/139/143/145…
Thursday, April 5, 2012
To offset our bullish delta bias ahead of the weekend, we’re opening a small hedge position, as follows: Day limit orderBuy to open 1 SPY Apr 141 putSell to open 2 SPY Apr 138 putsBuy to open 1 SPY Apr 135 putfor a net debit of $0.71 or better. Note that the 1 contract specified above for the “wings” of this butterfly represents half the number of contracts currently allocated to each strike in the April/May…
Thursday, March 8, 2012
We’re neutralizing the delta of this hedge position with the following iron condor order: Day limit orderBuy to open 1 SPY Mar 144 callSell to open 1 SPY Mar 139 callSell to close 1 SPY Mar 137 putBuy to close 1 SPY Mar 132 putfor a net credit of $1.43 or better. Note that the 1 contract per leg specified above represents the number of March 137 puts we’re long from Tuesday’s hedge trade. Analysis:…
Friday, February 3, 2012
We’re opening the following hedge position to adjust portfolio delta for this week’s rally: Day limit orderBuy to open 1 SPY Feb 133 callSell to open 2 SPY Feb 137 callsBuy to open 1 SPY Mar 141 callfor a net debit of $1.95 or better. Note that the 1 contract specified above for the “wings” (long legs) represents half the number of contracts allocated to each leg of our prior February trades. Analysis: As this afternoon’s…
Friday, November 11, 2011
As the trading week draws to a close, we’re making one last adjustment ahead of the weekend. We’re closing half of our second butterfly hedge position, with the following order: Day limit order Sell to open 1 SPY Nov 125 put Buy to close 1 SPY Nov 117 put for a net credit of $1.02† or better. Note, again, that 1 contract represents half the number we traded in the wings of this position (half the number…
Tuesday, November 1, 2011
As suggested earlier, we’re repeating this morning’s butterfly trade, only bigger this time: Day limit order Buy 2 SPY Nov 125 puts Sell to open 4 SPY Nov 119 puts Buy to open 2 SPY Nov 113 put for a net debit of $1.28 or better. Note that the 2 contracts specified above for the wings represents double the size of this morning’s trade and the same number of contracts initially allocated to each leg of…
Tuesday, November 1, 2011
We’re hedging our current downside risk with the following butterfly trade: Day limit order Buy to close 1 SPY Nov 125 put Sell to open 2 SPY Nov 119 puts Buy to open 1 SPY Nov 113 put for a net debit of $1.21 or better. Note that the 1 contract specified above for the wings (long legs) represents half the number of contracts allocated to each leg of our current, double-diagonal position. Given the tendency…
Jared Woodard is a registered commodity trading advisor who specializes in trading volatility as an asset class. With over a decade of experience trading options, futures ... Read More
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Tuesday, April 17, 2012
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