GDX SEPT 21ST 20 LONG PUT/23 SHORT STRADDLE/26 LONG CALL DOUBLE

2018년 4월 17일

This a continuation of a trade that started as a put side net credit diagonal. With the underlying chopping along nicely in a fairly tight range, I figured I'd add a short call aspect to beef up the credit received on roll, increase theta, as well as to smooth out/neutralize the delta in the setup. For lack of a better label, it's basically a "Calendarized Iron Fly." In a normal iron fly, all contracts are in the same expiry, with the short straddle body of the setup at the money, and the "wings" camped out in the 10-16 delta range.

Here, however, I've opted to buy long-dated wings to budget the buying power devoted to the trade over time and avoid having to leg into and out of the longs, paying for them once and avoiding repetitive commissions/fees associated with legging in multiple times. The downside of doing things that way, however, is that you're paying for more extrinsic in long-dated options that, in all like likelihood, will become "throwaways." Naturally, you can go wider with the wings to lessen that effect ... .

In any event, the current scratch point of the entire setup is a 1.14/contract credit. I'll continue to roll the short straddle, only instead of waiting for 50% of max, I'll roll at 25% ... .

2018년 5월 3일

액티브 트레이드

Rolling the short straddle body out to July at 21% max for a .51/contract credit; scratch at 1.65.

2018년 5월 22일

거래청산: 타겟 닿음

Covered at 1.05/contract debit; .60 profit/contract (20% the width of the wings). May re-up as a double diagonal once the July expiry gets into the 45 DTE range.