Opening (Margin): /MES 3910/4320 Short Strangle
Updated
... for an 86.50 credit.
Comments: And ... back into /MES in the expiry nearest 45 DTE. Selling the 24 delta strikes on both sides to get something approaching 50% ROC as a function of buying power effect. 432.50 max on buying power effect of 879.92, 49.2% ROC at max as a function of buying power effect; 24.6% at 50% max.
Will generally look to make adjustments to the setup when delta/theta ratio skews out to >1.0.
Comments: And ... back into /MES in the expiry nearest 45 DTE. Selling the 24 delta strikes on both sides to get something approaching 50% ROC as a function of buying power effect. 432.50 max on buying power effect of 879.92, 49.2% ROC at max as a function of buying power effect; 24.6% at 50% max.
Will generally look to make adjustments to the setup when delta/theta ratio skews out to >1.0.
Trade active
Selling the 21 delta P/-27 delta C to delta balance back to delta neutral. Doing this more to get to the size of position I want than as a delta adjustment, but killing two birds with one stone here. Collected 88.50 in credits for a total of 175.00 ($875.00 max).Trade active
Selling the 25 delta put and the -17 delta call here to cut net delta in half. Delta/theta is <1.0 here, so this is more about throwing a couple more theta logs on the fire than an adjustment. Collected 74.00 in credits with total credits collected now 249.00 ($1245.00 max). Position still leans a smidge short.Trade active
A bit of a move today ... . Selling the 20 delta 3920 put for a 38.25 credit here to cut net delta in half. Total credits collected of 249.00 + 38.25 = 287.25. Position continues to lean short.Trade active
Taking off some unit risk running into CPI by closing the 3825/4380 for a realized gain and a 57.25 debit. Total credits collected now 287.25 - 57.25 = 230.00. Will look to make adjustments after it makes its move.Trade active
A bit of an IV contraction here post-CPI print. Closing the 3930/4320 for 74.75 and a realized gain, resulting in a nearly net delta flat position. 230.00 - 74.75 = 155.25 total credits collected (776.25 max). With the position currently marking at 616.23, I'm up 1.60 ($160) or so at this point. Since I have 45 DTE left in this cycle, I may go ahead and add a unit back in here shortly.Trade closed manually
With the remaining strikes being somewhat wonky, I decided to close out the remainder of the position and recenter my risk with a new setup. Closed the remainder for a 125.25 debit. (230.00 -74.75 - 125.25)/.2 = $150.00 profit in total.
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