SPX 31AUG ICBASE
Trade Plan: We’re going to exit this trade this week. IF SPX trades higher, we’ll look to SELL TO CLOSE 2425/2435 put debit spread and BUY TO CLOSE 2425/2415 Bull Put spread. We’ll revisit this trade during our LIVE strategy call again.
SPX 29SEP ICBASE
Trade Plan: We’re holding a Bull Put spread and we’ll look to add a Bear Call spread IF SPX trades above 2460. On the downside, IF SPX starts to sell off we’ll look to cut NET delta using OTM options.
SPX 13OCT IC BASE
Trade Plan: This position is similar to 29SEP ICBASE and we’ll look to add another round of Bear Call spreads when SPX rallies and will defend it on the downside IF/WHEN SPX sells off and our short put delta reaches mid 20s.
SPX 06OCT Iron Fly
Trade Plan: We’re looking to make about 10% return on risk while willing to lose the same amount. On the downside, our stop is round 2390 and on the upside, we may roll 2480 call down to remove upside risk. We’ll run several scenarios during this week’s LIVE call.
RUT 29SEP EIP
Trade Plan: We’re holding Tier 1 against our stop loss and we’re looking to scale into this trade IF RUT rallies above 1420-1430. This trade has 33 days until expiration and with time running down, adding Tier 2 and Tier 3 will become more expensive. One potential way to manage this trade would be instead of adding Tier 3, we’ll move upper long puts closer to ATM and that will eliminate upside risk.
RUT 20OCT EIP
Trade Plan: We’re holding Tier 1 against our stop and we’re looking to scale in Tier 2 above 1380.
SPX closed at 2443 last week and options were pricing in about 23 points in either direction at the end of the day on Friday. Upper end of that range for SPX is around 2466 and lower end is right around 2420. I am interested in a few levels for SPX. 1 – declining 20dMA and flattening 50dMA. If SPX manages to get above those averages we may see some more upside action, until then I think that a recent low is vulnerable.