Aug 16, 2024 Update

Hey Traders! This was quite a good week. The market returned to an upward trend as I expected last week and I was able to profit from all my positions. As you can see I started doing a new strategy with a rolling put vertical which I’m able to collect quite a bit of profit from. This strategy is very hard to trade while SPX is going down, so I’ll be watching very closely.

My college starts this week so I might have some trouble trading these actively managed positions that have to be traded almost every day. I’ll try to keep it easy for myself by sticking to a set strategy for all the actions but if I don’t see myself being able to put that much time into it, I’ll switch entirely to the Broken Wing Butterflies which don’t need to be so actively managed.

Trade by Trade:

Trade 1: This was the opening trade which started the 7DTE rolling put vertical strategy. Moving forward from this strategy I won’t be opening new positions but rather rolling each time. It was a 40 width spread, which gave an opening premium of $285 while having a opening theta of around 45.

Trade 2: On Thursday, I rolled into this spread from trade 1 to collect $200 in premium while keeping a theta around 30. This is quite a bit of profit for just 2 days since the market was moving up a lot so I was happy to roll even if the strike was less favorable.

Trade 3: On Friday, I rolled into this spread from trade 2 giving me $140 in premium while keeping a similar theta of around 30. I happy holding this over the weekend as the short strike is at 5405 with is 2% below Friday’s closing price for SPX. I’m just going to roll this again on Monday so even if SPX goes down a lot I’ll probably still be able to collect profit or at least only have a little debit.

Trade 4: I closed this spread on Tuesday after it reached my profit target for this trade. I lost around $25 just to trading commissions and other fees because I have a $1 commission for opening and closing per option, resulting in 4x3 = $12 spent on the opening and closing end.

Trade 5: I closed this spread on Thursday for the same reason as trade 4. I again had to pay quite a bit in commissions so I will be switching to SPX for this strategy moving forward even though it’s equivalent to 10x one of these instead of 3x like I would prefer to do.

Trade 6: I opened this Broken Wing Butterfly spread on SPX in order to have much lower fees. Unfortunately, staying that the deltas that I’ve been opening them at is not longer an option so I moved all the deltas lower and closer together in order to lower the max loss so I can actually afford the spread. The breakeven for this spread is right above 5390, which was 80% PoP at time of opening.