Closed (Small Account): IWM August 27th 200/205 SPV... for a 1.04 debit.
Comments: Opened for .53, (See Post Below), taking loss here at around 2 x credit received. Too far, too fast.
Shortputvertical
Opening (Small Account): /ES August 31st 4070/4090 SPV... for a $102.50 credit.
Notes: Truth be told, I don't putz around with futures options all that much, but it's nice to have tools in the tool box that you can deploy when New York is closed. Here, doing the same thing I would do in SPY or SPX, looking to emulate dollar cost averaging into the broad market with more room to be wrong. Will generally look to take profit at 50% max; loss at 2 x credit received.
Opening (Small Account): IWM August 27th 200/205 SPV... for a .53 credit.
Comments: Highest implied volatility of the majors at 25.3%. Sold the spread nearest 45 days until expiry that pays around 10% of the width of the spread to emulate dollar cost averaging into the broad market with more room to be wrong. Generally, take profit at 50% max; loss at 2 x credit received.
Closing (Small Account): QQQ August 13th 327.5/332.5 SPV... for a .28 debit.
Comments: Hit 50% max early in the session when the QQQ's were still green. In for .57 (See Post Below), out for .28 here, 50% max, 6.32% ROC with 31 days to go.
Closing (IRA): SPX August 13th 3940/3990 Short Put Vertical... for a 2.00 debit.
Comments: In for a 4.00 credit (See Post Below), hit my order to take profit at 50% max today (2.00/$200 profit, 4.35% ROC) with 32 days to go. Still have August 20th (38 days until expiry) and August 27th (45 days) on.
Closing (Small Account): SPX August 13th 4030/4040 SPV*(Short Put Vertical) ... for a .55 debit.
Comments: In for 1.05 (See Post Below), out for .55, .50 ($50 profit), 5.59% ROC.
Opening (IRA): SPX 3980/4030 Short Put Vertical... for a 4.20 credit.
Comments: Selling the 16 delta, buying the 14 to emulate dollar cost averaging into the broad market with more room to be wrong than buying shares at market. 9.2% ROC at max; 4.6% at 50% max. Generally, will take profit at 50% max; loss at 2 x credit received.
Naturally, yesterday would've been the better day to put this on (i.e., in weakness, higher implied volatility).
Opening (Small Account): IWM August 20th 202/207 Short Put Vert... for a .51 credit.
Comments: Buying the 12, selling the 17 delta strikes in the expiry nearest 45 days until expiry to emulate dollar cost averaging into the broad market such that the spread pays at least 10% of the width of the spread.
Closing (IRA): SPX July 30th 3915/3965 Short Put Vertical... for a 1.65 debit.
Comments: Let this one run a little past 50% max ... . Filled for a 4.00 credit (See Post Below); out for 1.65 here with 28 days to go. 2.35 ($235) profit; 5.11% ROC. Still have the August 13th 3940/3990 and August 20th 3980/4030 on.
Opening (Small Account): QQQ August 13th 327.5/332.5... short put vertical for a .57 credit.
Comments: Doing a little bit of QQQ here in lieu of SPY due its higher implied volatility (20.2% vs. SPY's 15.7%). Selling the 19, buying 16 in the expiry nearest 45 days until expiry such that the spread pays at least 10% of its width in credit.
Opening (IRA): SPX August 20th 3980/4030 Short Put Vertical... for a 3.90 credit.
Comments: Selling the 16, buying the 13 delta strikes to emulate dollar cost averaging into the broad market with more room to be wrong than buying shares at market. 8.46% ROC at max; 4.23% ROC at 50% max. Generally, will take profit at 50% max; take loss at 2 x credit received.
Closing (Small Account): SPY July 30th 397.5/402.5... short put vertical for a .26 debit.
Comments: In for a .52 credit (See Post Below), out for .26 here (50% max) with 29 days to go. 5.80% ROC.
Closing (IRA): SPX July 23rd 3940/3990 Short Put Vertical... for a 1.80 debit.
Comments: In for a 3.60 credit (See Post Below), out here for 1.80 (50% max) with 22 days to go.
Closing (IRA): SPX August 6th 3825/3875 Short Put Vert... for a 2.35 debit.
Notes: Filled for a 4.70 credit (See Post Below) in the triple witching weakness/higher implied volatility environment we had on the 18th; out at 50% max here with 42 days to go. 5.19% ROC for one week's "work." This trade kind of highlights the fact that you want to put these on in weakness and higher implied volatility when you're given the opportunity. If the underlying recovers, you generally get a "one two punch" from the movement away from the setup, plus the volatility crush that occurs in an up move.
Opening (IRA): SPX August 13th 3940/3990 Short Put Vert... for a 4.00 credit.
Comments: Selling the 16, buying the 13. As with my small account trade, looking to emulate dollar cost averaging into the broad market with more room to be wrong. Will look to take profit at 50% max; loss at 2 x credit received.
Opening (Small Account): SPX August 13th 4030/4040 SPV(Short Put Vertical) ... for a 1.05 credit.
Comments: Going short put vertical in SPX this go around to emulate dollar cost averaging into the broad market with more room to be wrong than buying shares, just to show that you can trade bigger instruments even in a smaller account. Here, though, the buying power effect gobbles up quite a bit of this little account:
Metrics:
Buying Power Effect: The Width of the Spread (10.00 minus the credit received of 1.05) or 8.95 ($895)
Max Profit: 1.05 ($105)
Max Loss: 8.95 ($895)
Return on Capital at Max: 105/895 = 11.73%
Return on Capital at 50% Max: 5.87%
Return on Capital at Max Annualized: 87.4%
Return on Capital at 50% Max Annualized: 43.7%
As with my SPY spreads, I'll look to take profit at 50% max/loss at 2 x credit received.
Closing (Small Account): SPY July 30th 386/391 Short Put Vert... for a .26 debit.
Comments: In for .52 (See Post Below), out for .26, $26 profit. 5.80% ROC with 36 days to go.
Closing (Small Account): SPY July 23rd 393/398 Short Put Vert... for a .27 debit.
Comments: In for .54 (See Post Below), out for .27 (50% max), $27 profit, 6.05% ROC with 29 days to go.
Closing (IRA): SPX July 16th 3900/3950 Short Put Vertical... for a 2.00 debit.
Comments: In for 4.00 (See Post Below); out for 2.00 (50% max) with 23 days to go. $200 profit; 4.3% ROC.
Opening (Small Account): SPY July 30th 391/396 SPV*... for a .53 credit.
Notes: As with my SPX 50-wides, looking to emulate dollar cost averaging into the broad market, but in a smaller account.
* -- Short Put Vertical.
Opening (IRA): SPX August 6th 3825/3875 Short Put Vertical... for a 4.70 credit.
Notes: Selling the 16, buying the 13 on this weakness, looking to emulate dollar cost averaging in with more room to be wrong than buying shares at market. Will look to take profit at 50% max; loss at 2 x credit received.
Closing (IRA): SPX July 9th 3910/3960 Short Put Vertical... for a 2.05 debit.
Comments: In for 4.10 (See Post Below), hit my order to take profit at 50% max today with 25 days to go. $205 profit. 4.47% ROC for 18 days' "work" (90.6% annualized).
Opening* (Small Account): SPY July 30th 397.5/402.5 SPV**... for a .52 credit.
Comments: A continuation of my "small account" thread, utilizing short put verticals to emulate dollar cost averaging into the broad market. (See Post Below). Sold the 20, bought the 17 to receive a credit >10% of the width of the spread, immediately doing a "good until cancelled" order to take profit at 50% max.
Trade Metrics:
Max Profit: .52 ($52)
Max Loss/Buying Power Effect: 4.58 ($458)
ROC at Max: 11.4%
ROC at 50% Max: 5.7%
ROC at Max/50 Max as a function of Net Liquidity: 2.45%/1.22%
ROC at Max/50 Max as a function of Net Liquidity Annualized: 19.0%/9.5%
Current Net Liquidity: 2126.22
Current Available Buying Power: 1216.21
Percentage of Buying Power Deployed: 42.8%
* -- Late Post. Opened on 6/11.
** -- Short Put Vertical.
