Ok, in order to not be extra annoying I'll be concise. Lately, it looks like I have become one of those daily bloggers who doesn't have a life outside of blogging. God save me.
I deployed new SPX Credit Put spread early in the day while SPX was still around 2020.
Sell 4 September SPX 1825 Put @7.40
Buy 4 September SPX 1820 Put @7.10
Credit: 0.30 ($120)
Days to expiration: 28
I closed the Put side of the October SPX 1890/1895/2195/220 Iron Condor:
Buy 4 October SPX 1895 Put @31.90
Sell 4 October SPX 1890 Put @30.80
Debit: 1.10 ($440)
Originally this Put spread was opened for $120 credit, so there is a $320 loss here (120 - 440).
Deployed a new October Credit Put spread on SPX
Sell 3 October SPX 1710 Put @9.10
Buy 3 October SPX 1700 Put @8.50
Credit: 0.60 ($180)
Days to expiration:56
Current positions in the Portfolio:
October SPX 1700/1710/2195/2200 unbalanced Iron Condor
$280 credit here and 8 weeks to expiration. This position looks comfortable, unless we get a true crash. As for the Call side no concerns. Getting this position to return all of its $280 credit or as much as possible would really help compensate for today's $320 loss. This is the only position currently in the October cycle so, provided we don't get a crash, the final result would be an easily digestible loss. Very unlikely that I will need to adjust this position.
September RUT 1050/1060/1330/1340 unbalanced Iron Condor
$195 credit and 4 weeks to expiration. With RUT currently at 1156 it is not terribly bad. RUT was surprisingly stronger today, shedding only 1.34% of its value as the S&P lost 3.19%. RUT has to go down to around 1100 next week for me to think about adjusting here. And if that happens, I would close for a loss and would deploy new spread in the 925 area, still with September options.
September SPX 1820/1825 Credit Put spread
$120 credit also 4 weeks to expiration. With SPX at 1970 this one is not terrible either, but things can get ugly next week who knows. With SPX falling to 1910 next week I may need to defend here and I should be able to go down to 1650 for the new positions, still using September options.
Ok, if RUT doesn't fall to 1100 next week (5% loss) and if SPX doesn't fall to 1910 (3%) I'm still fine holding these positions as they are. Then, for the week after that, the adjustment points would be even lower, which gives my positions more room.
If these September positions end up as winners just as they are, it's a total $315 credit (120 + 195), which totally eclipses yesterday's loss of $272 in the Sept cycle. This means there is still a chance of having a positive September cycle after all. If, on the other hand, the market keeps falling precipitously forcing me to adjust September positions, then there will be no way to have a positive September. If I need to adjust only one of the September positions once again, September will be about a negative -2.5% in the end. If both positions need to be adjusted, then September will end up about negative 5% to 6%. If these positions are adjusted they would go to extreme levels that I don't expect to have to defend again (SPX 1650 and RUT 925)
The technical picture
Plenty of technical damage was done today on the SPX.
The long term uptrend channel going back to 2011 was violated to the downside.
Also horizontal support at 2040 of course, and also horizontal support lower down at 1980.
The next one is a scarier 1820, or some crazy Fibo in the middle or other Vodoo magic.
(Click on image to enlarge)
And here's RUT
On a positive note, today I saw both the August RUT 1350/1360 Credit Call Spread and August SPX 1925/1930 Credit Put Spread expire for max profit. The return of the portfolio up to August expiration is now +19.28%. Pretty nice considering the SPX index is down 4.27% for the year. I'm optimistic and think I can stomach a little draw-down here without losing my sexual stamina.
Phew...! well, I guess I will have nothing new to say for the Weekend Portfolio Analysis tomorrow. So, I'll take a break over the weekend and will go back to being a normal, non-blogging, person.
Thanks for dropping by!
Take it easy, but always, always, always take it anyways.
Check out 2015 Track Record
Adjusted SPX 1700/1710/2195/2200 Iron Condors expires succesfully