SPX 31AUG ICBASE
Trade Plan: SPX traded below our short strike of 2425. We added a put spread to turn this position into an unbalanced put butterfly. We’re going to see which way the market moves next and will either remove 2425/2415 put spread (if SPX trades lower) or remove 2425/2435 put spread (if SPX trades higher). We’ll look at different scenarios during our Live Strategy call next week.
SPX 29SEP ICBASE
Trade Plan: We were able to buy back original call spread and that left us with a Bull Put spread. Even with SPX selling off last week and an increase in IV, this put shows a probability of success at around 78%. Short put is around 25 delta. If SPX rallies we’ll look to sell some call spreads (1/2 size). That will re-balance NET delta. If SPX sells off we can look to cut NET delta.
SPX 13OCT ICBASE
Trade Plan: This IC is holding up relatively well. 2550/2560 Bear Call traded around .30c late last week and we’re going to look to close that call spread next. On the downside, we’re going to make adjustments IF SPX trades around 2400. On the upside, we’ll look to re-enter another call spread IF SPX rallies.
RUT 29SEP EIP
Trade Plan: We’re holding T1 vs our stop out which is around 1345 on the downside. On the upside, IF RUT manages to rally, we’re going to scale into T2 and T3 according to plan.
SPX closed at 2425 on Friday and options that will expire this week on Fri were pricing in a range between 2460 and 2391.