Opened (Small Account): SPRT October 15th 3/8 SPV*... for a 1.04 credit.
Metrics:
Max Profit: $104
Max Loss/Buying Power Effect: $396
Return on Capital at Max Profit as a Function of Buying Power Effect: 26.3%
Return on Capital at 50% of Max Profit as a Function of Buying Power Effect: 13.1%
Break Even: 6.96
Comments: Went with farther out-of-the-money strikes than posted in my Trade Idea (See Post Below). Not that the 10 strike was "bad"; I just wanted more room to be wrong. Generally, will look to take profit at 50% max.
* -- Short Put Vertical.
Shortputvertical
Opening (Small Account): SPY October 15th 426/431 SPV*... for a .52/contract credit.
Comments: Although implied isn't ideal here (>20 is better), throwing some caution to the wind and selling a five wide at the strikes paying at least 10% of the width of the spread in credit. This ends up with me selling the 21 delta and buying the 18, which is a little bit more aggressive than I usually like to go, but selling the 16 and buying the 13 isn't only paying .40, so taking a smidge of more risk here.
Generally, will look to take profit at 50% max.
* -- Short put vertical.
Closed (Small Account): SPY October 15th 408/413 SPV*... for a .26 debit.
Comments: In for .52 (See Post Below), out for .26 today with 45 days to go via a good until cancelled order to take profit at 50% max. 5.80% ROC as a function of buying power effect.
* -- Short Put Vertical.
Closed (Small Account): SPY September 30th 409/414 SPV*... for a .26 debit.
Comments: In for a .53 credit (See Post Below); out here at 50% max via a good until cancelled order. .27 ($27) profit/6% ROC with 34 days to go. Still have the October 15th 408/413 on.
With SPY 30-day at 16.1%, I'll probably wait until another VIX>20 print before adding. With these small accounts, you don't have a ton of cash to play with, so you want to be a little more selective with your entries.
Month Beginning Net Liquidity: 2359.23
Current Net Liquidity: 2564.28
Minus Additions: -100.00
Net Liquidity Excluding Additions: 2464.28
Month to Date Gain: 4.45%
Year to Date Gain: 8.34%
* -- Short Put Vertical.
Closed (Small Account): QQQ September 30th 333/338 SPV*... for a .26 debit.
Comments: In for .53 (See Post Below), out for .26 today via a good until cancelled order to take profit at 50% max. .27 ($27) profit. 6.0% ROC with 36 days to go.
* -- Short Put Vertical.
Opened (Small Account): SPY September 30th 409/414 SPV*... for a .53 credit.
Comments: A late post. Added some in the morning, got weaker, so added some in the afternoon as well (at 12:22:26).
The basic strategy here is to emulate dollar cost averaging into the broad market with more room to be wrong, albeit with the twist being that you generally want to do it in higher implied volatility environments/on weakness. Generally, will look to take profit at 50% max.
* -- Short put vertical; also known as a "bull put spread," since it's a put spread that's neutral to bullish assumption.
Opened (Small Account): SPY October 15th 408/413 SPV*... for a .52 credit.
Comments: A late post. Sure enough, I go on vacation and the market dumps. Filled early in the session at 9:35:53. Generally, will look to take profit at 50% max.
* -- "Short put vertical"; also known as a "bull put spread."
Closed (IRA): SPX September 10th 4040/4090 SPV... for a 2.05 debit.
Comments: In for 4.10, hit my order to take profit at 50% max here; 2.05 ($205) profit/4.5% ROC. Will look to re-up on weakness/higher implied volatility, with the preference being for 30-day >20 (it's current sub-16).
Opened (Small Account): QQQ September 30th 333/338 SPV... for a .53 credit.
Comments: Did some spread in the QQQ's on weakness (and a little bit higher implied than SPY) to emulate dollar cost averaging into the broad market in the expiry nearest 45 days shooting to collect a credit that exceeds 10% of the width of the spread. Generally, will look to take profit at 50% max; loss at 2 x credit received.
Closed (Small Account): SPY September 30th 393/398 SPV... for a .27 debit.
Comments: In for .53 (See Post Below), out for .27 here. .26 ($26) profit/5.8% ROC as a function of buying power effect.
Closed (Small Account): SPY September 17th 403/408 SPV*... for a .26 debit.
Comments: Hit my 50% max take profit order. In for .52 (See Post Below), out for .26; .26 ($26) profit/5.8% ROC as a function of buying power effect.
* -- Short Put Vertical.
Closed (IRA): SPX September 3rd 3975/4025 SPV... for a 2.30 debit.
Comments: In for a 4.60 credit (See Post Below), out today via good until cancelled order to take profit at 50% max with 29 days to go. 2.60/$260 profit, 5.7% ROC. Still have a September 10th 4040/4090 on.
Closing (IRA): SPX August 27th 3980/4030 SPV... for a 2.10 debit.
Comments: In for 4.20 (See Post Below), out for 2.10 here via a good until cancelled order to take profit at 50% max. 2.10 ($210) profit; 4.6% ROC with 24 days to go.
Opened (Small Account): SPY September 30th 393/398 SPV... for a .53 credit.
Comments: Added a little more a little later in the session on this weakness, volatility expansion. 11.9% ROC at max; 5.9% at 50% max. I now have the August 27th 403/408's, September 17th 403/408's, and the September 30th 393/398's on. Will generally look to take profit at 50% max; re-up on weakness/heightened volatility.
Opening (IRA): SPX September 10th 4040/4090 Short Put Vertical... for a 4.10 credit.
Comments: Selling the 16, buying the 13 in the expiry nearest 45 days to emulate dollar cost averaging into the S&P. Generally, will look to take profit at 50% max.
Closed (Small Account): SPY August 27th 403/408 SPV... for a .27 debit.
Comments: In for .53 (See Post Below), hit my order to take profit at 50% max for .27 here with 29 days to go. .26 ($26) profit. 5.9% ROC for 14 days' "work." Still have the September 15th 403/408 and September 30th 393/398 short put verticals on, so will wait for an uptick in volatility to add.
Opened (Small Account): SPY September 17th 403/408 SPV... for a .52 credit.
Notes: Wanted to get something on in this weakness and volatility expansion, since I only have one spread left on -- the August 27th 403/408. 11.6% ROC at max; 5.3% at 50% max.
Closing (IRA): SPX August 20th 3980/4030 SPV... for a 1.95 debit.
Notes: In for 3.90 (See Post Below), hit my order to take profit 50% max today. 1.95 ($195) profit; 4.1% ROC. Still have the August 27th 3980/4030's and September 3rd 3975/4025's on.
Closed (Small Account): SPY September 17th 381/386 SPV... for a .26 debit.
Comments: In for .52 on July mopex weakness/volatility, (See Post Below); out for .26 today (50% max). 5.7% ROC for 4 days' "work" with 56 days to go.
Closing (Small Account): /ES August 31st 4070/4090 SPV... for a $12.50 profit.
Comments: Closing this out here for a small profit to return to my regularly scheduled broadcast of SPY, IWM, QQQ options trading ... .
Opening (Small Account): SPY September 17th 381/386 SPV... for a .52 credit.
Notes: A late post ... . Opened this yesterday morning at around 10:15 a.m. to take advantage of the high volatility environment and weakness. There wasn't any September 3rd weekly in SPY yet, so had to use the monthly. It's like the market knew that I was going to be out on the lake ... . :-)
Opening (IRA): SPX September 3rd 3975/4025 Short Put Vertical... for a 4.60 credit.
Comments: Selling the 16, buying the 13 delta here on weakness. 10.1% ROC at max; 5.0% at 50% max.
Opened (Small Account): SPY August 27th 403/408 Short Put Vert... for a .53 credit.
Comments: Selling the 5-wide in the expiry nearest 45 days until expiry and collecting at least 10% of the width of the spread in credit to emulate dollar cost averaging into the broad market.
