We’re reducing our upside risk to adjust for this afternoon’s rally by rolling our position in the Feb/Mar 125 put calendar up to a call calendar at the 135 strike, with the following order: Day limit orderBuy to close 2 SPY Feb 125 putsSell to close 2 SPY Mar 125 putsBuy to open 2 SPY Mar 135 callsSell to open 2 SPY Feb 135 callsfor a net debit of $0.08 or better. Note that the…
Friday, January 6, 2012
We’re closing the put side of the January iron condor we rolled from our Dec/Jan double-diagonal, to free up margin for a February entry trade later this afternoon. Day limit order Buy to close 2 SPY Jan 114 puts Sell to close 2 SPY Jan 107 puts for a net debit of $0.04 or better. Note that the 2 contracts specified above represent our entire stake in the Jan 107/114 put vertical portion of this position.
Thursday, December 15, 2011
As discussed in this afternoon’s trade notice, we’re rolling out the short legs of this position by selling a double-diagonal, as follows: Day limit order Buy to close 2 SPY Dec 128 calls Sell to open 2 SPY Jan 127 calls Buy to close 2 SPY Dec 113 puts Sell to open 2 SPY Jan 114 puts for a net credit of $2.45 or better. Note that 2 contracts represent our entire short positions at…
Wednesday, December 14, 2011
We’re reducing our risk this afternoon by closing the call side of our December/January double-calendar, as follows : Day limit order Buy to close 2 SPY Dec 131 call Sell to close 2 SPY Jan 131 call for a net credit of $0.36 or better. Note that the 2 contracts specified above represent all of our current position in the Dec/Jan 131 call calendar portion of the 123/131 double-calendar. Analysis: I’m going to start off the analysis…
Tuesday, December 6, 2011
With SPY near $127, we’re neutralizing portfolio delta and selling some additional premium by rolling the short December 125 calls up to the 128 strike, with the following order: Day limit order Buy to close 2 SPY Dec 125 calls Sell to open 2 SPY Dec 128 calls for a net debit of $1.76 or better. Note that the 2 contracts specified above represent our entire short position in the Dec 125 calls. Analysis: Given the moderate,…
Thursday, November 17, 2011
We’re reducing downside risk by closing most of the Nov 113/119 put vertical from this position, as follows: Day limit order Buy to close 2 SPY Nov 119 put Sell to close 2 SPY Nov 113 put for a net debit of $0.38 or better. Note that 2 contracts per leg represent 2/3 of our current position in the Nov 113/119 put vertical.
Thursday, November 3, 2011
As planned, we’re rolling a portion of our current November butterfly hedge into a delta-neutral iron condor, as follows: Day limit order Buy to close 1 SPY Nov 119 put Sell to close 1 SPY Nov 125 put Sell to open 1 SPY Nov 132 call Buy to open 1 SPY Nov 138 call for a net credit of $1.84 or better. Note that 1 contract per leg represents the number of contracts we’re long…
Thursday, November 3, 2011
The roller-coaster ride continues today, with the S&P 500 index currently up 1½ percent and market sentiment running solidly bullish. If SPY is still above $125.60 around 2:30pm Eastern, we’ll adjust at least some of our November butterfly hedge position. Note that we’re planning to roll up by selling an iron condor, which will require about $425 in margin per contract rolled.
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…
Wednesday, October 12, 2011
We’re opening the following position to hedge our upside delta and vega risk: Day limit order Buy to open 2 SPY Oct 130 calls Sell to open 4 SPY Oct 124 calls Buy to open 2 SPY Oct 118 calls for a net debit of $2.81 or better. Note that the 2 contracts specified above for the wings represent the number of contracts allocated to each leg of our core, double-diagonal position. Analysis: The resulting risk…
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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Wednesday, January 25, 2012
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