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IncomeLab (Old)Participant
We’re going to SELL TO CLOSE Tier 1 butterfly. This will reduce downside risk and reduce upside risk as well.
IncomeLab Order Ticket Type Asset Duration Strike C/P STC RUT 18 AUG 1410 Put BTC X2 RUT 18 AUG 1380 Put STC RUT 18 AUG 1330 Put Total Credit: $1.10-$1.20 P/L graph:
Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantLast week, we picked up 8SEP 2540 calls to cut our NET delta from -60 to about -20. SPX traded 15 points higher since then and our NET delta is around -40. We want to bring that number back to -20. We’ll add (2) 8SEP 2540 calls (they’re around 11 delta) to reduce our NET exposure back to -20. We’ll also roll up 2510/2520 Bear Call spread when 2510 delta reaches low 30s (currently around 25).
IncomeLab Order Ticket Type Asset Duration Strike C/P BTO SPX 8 SEP 17 2540 Call Total Debit: $2.75 P/L graph:
Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantRUT 18AUG EIP:
Trade Plan: On Friday we rolled 1450 put down to 1440. This adjustment reduced upside risk and re-balanced NET delta close to 0. IF RUT trades lower, we can look to roll any long upside put of Tier 1, 2 or 3 higher to re-balance NET delta and avoid sliding down the T+0 line.
RUT 15SEP EIP:
Trade Plan: We’re going to add Tier 2 WHEN/IF RUT trades above 1450. On the downside, IF RUT trades below 1385 – we’ll have to either re-position Tier 1 or close out for a small loss.
SPX 31AUG ICBASE:
Trade Plan: We’ll look to roll up 2510/2520 Bear Call spread up when 2510 Call’s delta reaches 30-35. We’ll also close out OTM call hedge to help pay for this roll.
SPX 8SEP ICPLUS:
Trade Plan: Upside stop around 2500 while downside stop around 2385. Nothing between that, just let the trade works itself out.Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantWe’re going to roll 1450 put down to 1440. This will do several things:
1. Remove almost all of upside risk.
2. Add a little more risk on the downside.
3. Re-balance NET delta from -10 to -2 (keeping theta almost the same)IncomeLab Order Ticket Type Asset Duration Strike C/P STC RUT 18 AUG 17 1450 Put BTO RUT 18 AUG 17 1440 Put Total Credit: $5.00 P/L graph
Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantWe’re going to BUY TO CLOSE remaining Bull Put spread
IncomeLab Order Ticket Type Asset Duration Strike C/P BTC SPX 11 AUG 17 2345 Put STC SPX 11 AUG 17 2340 Put Total Debit: $0.10-$0.15 IncomeLab (Old)ParticipantWe’re going to BUY TO CLOSE 2490/2495 Bear Call spread
IncomeLab Order Ticket Type Asset Duration Strike C/P BTC SPX 11 AUG 17 2490 Call STC SPX 11 AUG 17 2495 Call Total Debit: $1.90 IncomeLab (Old)ParticipantWe’re going to make an adjustment on the upside. 2510 call delta reached 20. Our goal is to remove 2/3 of our NET delta of this position. This is what it looks like currently:
Our NET delta is around -60. We need to cut it down to -20. We’re going to add 40 delta by buying OTM calls in 8SEP cycle with 51 days to expiration. We’re picking up (4) 10 delta calls. This is what this position looks like after this adjustment:
IncomeLab Order Ticket Type Asset Duration Strike C/P BTO SPX 8 SEP 17 2540 Call Total Debit: $2.60 Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantWe’re going to add Tier 3 put butterfly, 20 points above Tier 2
We’re going to:
Buying (1) 1370 put
Selling (2) 1420 puts
Buying (1) 1450 putIncomeLab Order Ticket Type Asset Duration Strike C/P BTO RUT 18 AUG 17 1450 Put STO 2x RUT 18 AUG 17 1420 Put BTO RUT 18 AUG 17 1370 Put Total Debit: $4.20 P/L graph:
Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantWe’re going to roll up 2290/2280 to 2370/2360.
1. BUY TO CLOSE 2290/2280 for .40c or less
IncomeLab Order Ticket Type Asset Duration Strike C/P BTC SPX 31 AUG 17 2290 Put STC SPX 31 AUG 17 2280 Put Total Debit: $0.40 2. SELL TO OPEN 2370/2360 Bull Put spread
IncomeLab Order Ticket Type Asset Duration Strike C/P STO SPX 31 AUG 17 2370 Put BTO SPX 31 AUG 17 2360 Put Total Credit: $0.90 IncomeLab (Old)ParticipantSPX 11AUG KISS IC:
Trade Plan: We’re going to stop out of this trade at a loss of 2X of our profit target (-1950). Our profit target is around 70-80% of MAX Profit (975)
SPX 31AUG ICBASE:
Trade Plan: We’re going to roll up 2290/2280 Bull Put spread up to 2350/2340 or to closest strike to 15 delta for a credit of .80c-.90c. We’re also going to BUY TO OPEN OTM call(s) to remove 2/3 of NET delta to lift T+0 line on the upside and control losses IF SPX continues to move higher.
SPX 26JUL KISS IC:
Trade Plan: We’re going to BUY TO CLOSE this IC for .30c or put orders to leg out of each side of this trade for .10c-.20c
RUT 18AUG EIP:
Trade Plan: We’re going to scale Tier 3 when RUT trades above 1430. Our current Profit Target is 800 and stop when P/L -800. If RUT trades below 1370, we’re going to scale out of Tier 2 and reduce our Profit Target to 400 while keep ing our stop the same (-800). If we scale Tier 3, we’re going to raise our Profit target and stop to 1200.Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantWe’re going to roll up our put spread from 2290 to 2350 in 2 steps:
1. BUY TO CLOSE 2290/2280 BULL PUT SPREAD
IncomeLab Order Ticket Type Asset Duration Strike C/P BTC SPX 31 AUG 17 2290 Put STC SPX 31 AUG 17 2280 Put Total Debit: $0.40 2. SELL TO OPEN 2350/2340 BULL PUT SPREAD
IncomeLab Order Ticket Type Asset Duration Strike C/P STO SPX 31 AUG 17 2350 Put BTO SPX 31 AUG 17 2340 Put Total Credit: $0.80 Note: This adjustment does NOT fix the upside, but it brings in an additional credit that can be used to hedge the upside IF SPX breaks out above previous all time highs. Our plan is to use OTM options to hedge on the upside when short strike’s delta goes above 20 (currently about 16 or so).
Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantWe just added ICBASE last week and putting another ICBASE would be doubling the risk without getting any significant increase in reward. This trade (KISS IC) is a shorter duration trade and is a good cash flow trade, IMO.
–Igor
IncomeLab (Old)ParticipantSPX 26JUL KISS IC:
Current P/L: +600
Trade Plan: We’re looking to BUY TO CLOSE this IC for .30c debit.SPX 31AUG ICBASE:
Current P/L: +450
Trade Plan: We’re going to make adjustments WHEN/IF short strike’s delta reaches 20-25. This trade is slightly ahead, currently at around 17% of max profit in 5 days since entry.SPX 11AUG KISS IC:
Current P/L: 0
Trade Plan: looking to capture 70-80% of max profit while risking 2X profit target.RUT 18AUG EIP:
Current P/L: +200
Trade Plan: Add Tier 3 above 1430, current profit target 800, stop -800. Scale out of T2 below 1370Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantWe’re going to BUY TO CLOSE this Iron Condor, leaving OTM call hedges to either expire or close for what they’re worth
IncomeLab Order Ticket Type Asset Duration Strike C/P STC SPX 21 JUL 17 2495 Call BTC SPX 21 JUL 17 2485 Call BTC SPX 21 JUL 17 2340 Put STC SPX 21 JUL 17 2330 Put Total Debit: $0.50 Attachments:
You must be logged in to view attached files.IncomeLab (Old)ParticipantWe’re going to change strikes to:
2290/2280 Bull Put spread
2510/2520 Bear Call spreadIncomeLab Order Ticket Type Asset Duration Strike C/P BTO SPX 31 AUG 17 2520 Call STO SPX 31 AUG 17 2510 Call STO SPX 31 AUG 17 2290 Put BTO SPX 31 AUG 17 2280 Put Total Credit: $1.70 Attachments:
You must be logged in to view attached files. -
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