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BookingAlpha Option Trading Advisory

Friday, October 23, 2015

Fighting a monstrous rally

More than losing money trading, I hate having to write an article with three hundred different trades. That's just confusing and messes up everybody. It discourages reading this site.

I like to keep things simple and very easy to understand because, in the end, my trades are not the center of the universe for you to be dedicating even an hour to them. It is enough of an honor that you spend some of your time coming to this site.

So, very simple. Three trades today:

1- Closed the Call side of the November SPX 1630/1640/2100/2110 Iron Condor.
Debit: 3.45 ($690)
Original Credit received for this entire Iron Condor was $350
I deployed a new 2130/2140 Credit Call spread for 1.10 credit but only half the original number of contracts. Credit: $110.

The final position is an unbalanced Iron Condor now: 1630/1640/2130/2140 with a total credit collected of $460 and a $690 debit (net = $230 debit)

Update: November 3, I rolled the 2130/2140 Call spread side up to 2160/2165 as the market kept rallying. 3.15 debit to close, 0.60 credit for new spread playing it full size. Details in the track record

2- Sold a small November SPX 1945/1950 Credit Put spread for 0.30 credit ($60). Playing half the usual size.

 (Click on image to enlarge)

3- Opened a December RUT 1010/1015/1240/1245 Iron Condor for 0.80 credit.
Half the usual size on both spreads, so total credit = $160, max risk $840.

(Click on image to enlarge)

Already trading December options, last cycle of the year. I'm basically trying to finish the year strong and throwing positions into a challenging environment. Having more exposure than usual I will manage winners before expiration given the opportunity to take risk off the markets.

Trade Update (November 12, 2015)
Closed the 1240/1245 Call side for 0.38 debit. Initial credit on this side was 0.52 so it is a small 0.14 win, or $28 bucks. My plan is to reload on better strikes when/if the market rebounds. There's plenty of time for that to happen. Only the 1010/1015 Put spread side remains after this.

Current positions in the Portfolio:

November SPX 1630/1640/2130/2140 Unbalanced Iron Condor

November SPX 1945/1950 Credit Put spread

December SPX 1790/1795/2135/2140 Unbalanced Iron Condor

December RUT 1010/1015/1240/1245 Iron Condor 

Related Articles:
Weekend Portfolio Analysis (November 1, 2015)
Weekend Portfolio Analysis (November 14, 2015)
Weekend Portfolio Analysis (November 22, 2015)
Weekend Portfolio Analysis (November 28, 2015)
Weekend Portfolio Analysis (December 5, 2015) 
Weekend Portfolio Analysis (December 19, 2015)

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