Opening (IRA): SMH 2 x July 19th 210/215 Short Put Vertical... for a 1.00 in credit.
Comments: Part two of delta adjustment trade ... .
Instead of rolling up the 205/215 short put vertical, I closed it out (See Post Below), and then re-erected a 2 x 5 to delta balance against my call side, whose short leg is at the -32 delta strike.
This doesn't increase buying power effect, since the 2 x 5 is equivalent to the 1 x 10 on the call side.
The end result is a 2 x 210/2 x 215/255/265 iron condor, -5.79/3.42 delta/theta on which I've netted 3.36 in credits.
Deltaadjustment
Closing (IRA): SMH 205/215 Short Put Vertical... for a .87 debit.
Comments: First part of an adjustment trade. Instead of rolling the short put vertical aspect of my 205/215/255/265 up to delta balance, I'm closing it out.
Then, I'll re-erect a 2 x 5 (the equivalent of a 10-wide) to delta balance against the call side, whose short leg is at the 32 delta.
Closed (IRA): SMH July 19th 189/199/275/285 Iron Condor... for a 1.17 debit.
Comments: Mixing and matching profitable put wing with profitable call wing from iron condors put on at different times (See Posts Below) to de-risk running into NVDA earnings on 5/22. (NVDA is around 21% of SMH holdings).
The resulting setup is a July 19th 205/215/255/265 on which I've collected a net 3.23 in credits; delta/theta -.28/3.45.
I'll look at doing a delta adjustment post-earnings if necessary.
Opening (IRA): SMH July 19th 205/215/275/285 IC... for a 2.17 credit.
Comments: An additive delta adjustment to the current SMH IC I have on. (See Post Below).
With the original setup's short call aspect converging on -25 delta and the short put converging on +10, selling a skewed IC with the oppositionally delta'd short call/short put (i.e., at the +25 short put and the -10 delta short call) to bring back the position back to net delta flat with 63 days until expiry.
4.40 total credits collected with a current delta/theta of 1.02/5.81.
Opening (Margin): /MCL March 16th 79.25 Short Straddle... for a 9.19 credit.
Comments: A short delta additive adjustment trade here to cut net long delta in my entire /MCL position by about half, with the goal being to keep the delta/theta ratio under 1.0. The entire position still leans net long, but I will leave it that way to see if the market does some of the lifting for me.
Total credits collected of 13.90. As with my /MES reverse gamma scalping setup, looking to take about 25% of total credits received out of the position, closing it out in its entirety at no later than about half way through the cycle (i.e., around 21 DTE) before moving on to the next monthly.
For those of you just tuning in: This is not a standalone trade. It is an adjustment to an existing position with delta/theta metrics peculiar to that position. Unless you have that exact same position on with the exact same delta/theta metrics, this trade will only be informational or educational as to how to make an additive delta adjustment to a position you currently have on, particularly using a skewed short straddle to accomplish the task. I would note that this isn't the only way in which to adjust position net delta; it is just the tool I am using in this particular case.
The entire position is also nondirectional by nature with the sole effort being to keep the net position's zero delta/gamma point within shouting distance of current price with various delta adjustments, some of which will be additive (adding contracts), some of which will be subtractive (closing out contracts). I have no opinion as to where oil goes from here or how much it will move in any given day or over a given time frame or whether a particular level is important or not for price action purposes. This type of setup is basically a bet that the underlying stays within the expected move (EM) or some factor of the expected move as determined by options delta and little else.
Opening (Margin): /MES February 28th 4080 Short Put... for a 73.75 credit.
Comments: Functionally rolling to a 4080 short straddle here to delta balance and bring my delta/theta ratio to back under 1.0. The position remains net delta short, which I'm fine with since we're at 30 day highs here. Will look to take off the whole kit and caboodle in the next several days here, since I've only got 32 DTE to go in this contract, and would like to move on to the March fairly soon.
Opening (Margin): /MCL March 16th 70*/101 Short Strangle... for a 1.33 credit.
Comments: An additive delta adjustment trade, selling the +13 delta put at the 70 and the -8 delta call at the 101. The position still leans net delta short here, which I'm fine with since WTI is toward the top of its 30-day range.
* -- The 70 is shown at the 69 strike.
Closing (Margin): /MCL 69/96 Short Strangle... for a 1.68 debit.
Comments: Received 2.00 in credits for this pair of legs. Closing out here for 1.68 as a profitable, subtractive delta adjustment trade. .32 ($32.00) profit. This leaves me (at the moment) with a 10 delta short strangle at the 66/97 and a 17 delta short strangle at the 70.5/93, with the entire position being net delta flat.
Opening (Margin): /MES February 28th 3890, 3925, 3940, 3960... short puts.
Comments: Replacing the short puts I stripped off in profit to delta balance what is now the -27, -31, -33, and -36 delta calls. The remaining -42 delta short call at the 4080 is only partially hedged, so position net delta still leans short.
Opened the February 28th 3890 for a 41.00 credit.
Opened the February 28th 3925 for a 49.25 credit.
Opened the February 28th 3940 for a 53.25 credit.
Opened the February 28th 3960 for a 59.25 credit.
Closing (Margin): /MCL February 15th 67 Short Put... for a .27 debit.
Comments: Since I've exited the position that this leg was providing a little long delta assist to, closing it out here for a small winner. Filled for a .54 credit; out here for a .27 debit. .27 ($27) profit. I'm now all out in the March cycle which, for the moment, is net delta flat to slightly short.
Closing (Margin): /MES Feb 28th 4200, 4220, 4250, 4260 CallsComments: Doing this all in one fell swoop, rather than in separate posts.
Closed:
February 28th 4200 Short Call for an 11.00 debit. (22.00 - 11.00)/.20 = $55.00 profit.
February 28th 4220 Short Call for a 9.00 debit. (16.50 - 9.00)/.20 = $37.50 profit.
February 28th 4250 Short Call for a 6.50 debit. (13.25 - 6.50)/.20 = $33.75 profit.
February 28th 4260 Short Call for a 5.75 debit. (13.50 - 5.75)/.20 = $38.75 profit.
Opened:
February 28th 4110 for a 27.00 credit.
February 28th 4130 for a 22.25 credit.
February 28th 4160 for a 16.25 credit.
If you're asking yourself why I'm selling at these particular strikes, it is to sell call against at a delta that is correspondent with existing legs' short put delta (e.g., the 4110, -23 delta short call strike was selected to sell against my 3770 +24 delta short put; the 4130, -20 delta short call against my 3740, +21 delta short put, etc.). When I finished doing this, I also figured I could afford to resolve having the extra short call unit on by just closing one of the extra short calls that was currently in profit. This leaves me slightly net delta long in the position.
Opened (Margin): /MES February 28th 4190 Short Call... for a 14.50 credit.
Comments: Kind of had to do this on the fly with my phone app ... . Additive short delta adjustment. It was at the -15 delta at the time of fill. Will probably roll down some profitable short call now that I have an opportunity to survey the landscape from the desktop app.
Opening (Margin): /MCL March 16th 65/107 Short Strangle... for a 1.09 credit.
Comments: Here, delta balancing my March position by selling a +9 delta put at the 65 strike and a -6 delta call at the 107. I'll look to sell more "normal" strikes for my typical setup once I clean up the remainder of my Feb positions.
Opening (Margin): /MCL February 15th 67 Short Put... for a .54 credit.
Comments: An additive long delta adjustment trade, selling the +10 delta put. February position still leans a smidge short here with 33 days to go.
I'm indicating that this is "long" here because the delta of the position is long, not because I think oil goes up from here.
Opening (Margin): /MCL February 15th 68/93 Short Strangle... for a 1.24 credit.
Comments: An additive long delta adjustment trade, selling the 68P at the +14 delta strike and the 93C at the -9, giving me net +5 in delta to flatten the directionality of the position. It still leans slightly short, just not as short as it was before.