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Opening (IRA): QQQ March 31st 220 Short Put... for a 2.42 credit. Comments: Adding rungs to my QQQ where I can, targeting the <16 delta strike paying around 1% of the strike price in credit. There is no April yet, so going with the quarterly. Ordinarily, I would go with the shortest duration contract of around 45 days' duration, but that would be the January 27th, where the <16 delta strike at the 250 is paying 2.33 (i.e., <1% of the strike price in credit). Similarly, the SPY January 27th 360 (currently 15.6 delta) is paying 3.15; the IWM January 27th 160 (currently 14.1 delta) is paying 1.43. Consequently, I'm going with longer duration for the moment, although there's nothing to prevent one from selling higher, more aggressive shorter duration delta to get paid.
NASDAQ:QQQLong
by NaughtyPines
Closing (Margin): /MES February 17th 3590 Short Put... for a 21.50 debit. Comments: Fixing part of my screw up in opening my additive delta adjustment short strangle (which I opened in the February 28th expiry instead of the February 17th). (30.00 credit (for this leg) - 21.50)/20 = .425 ($42.50) profit. I will now proceed to open a 13 delta short put in the February 28th expiry to replace it, but will still have the February 28th 3720 short put on as "an odd man out" for the time being.
CME_MINI:MES1!
by NaughtyPines
Opening (Margin): /MES February 28th 3720/4210 Short Strangle... for a 68.75 credit. Comments: An additive delta adjustment trade. (68.75/20) = 3.4375 ($343.75) credit. My original thought process was to just leave what I had on mostly alone running into CPI, but didn't like how the position had skewed out short, so am adjusting it here to net delta flat. I actually intended to open this in the February 17th contract, but am going to go ahead and leave it alone here. All this means is that I'll have to leg out of the sides one at a time versus closing the short strangle as a unit due to the fact that two corresponding legs will potentially be in different expiries.
CME_MINI:MES1!
by NaughtyPines
Opening (IRA): SMH Feb/March 170/154 Short Put LadderComments: My broad market positions are getting a little crowded and busy, so deploying some buying power into some sector ETF's, targeting the <16 delta strike paying around 1% of the strike price in credit. 30-day isn't bad here at 36.3%, but this isn't exactly as weak as it has been, so it's possible that a better entry could be had. Because of that, I'll look to potentially add should better opportunities present themselves. The goal here is to collect premium and/or to reduce cost basis in shares that you might be eventually assigned and not necessarily to get ideal entries; there is, after all, some "slop"/room to be wrong with these. That being said, being patient and getting paid something decent for a lower strike is always a good thing, since a lower strike means a smaller buying power effect. February 17th 170: 1.74 credit March 17th 154: 1.54 credit
NASDAQ:SMHLong
by NaughtyPines