![\"\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2015\/10\/spxafter.png\")
<\/a><\/p>\nNow, IF SPX CLOSES ABOVE 2100 here is what we will do:<\/p>\n
1. Close out the long calls for a profit
\n2. Use those profits to roll the call side higher.
\n3. Roll the put side higher for a credit.<\/p>\n
The technicals of the market show that there *should* be a brick wall coming up here for SPX, but we’ve seen before how the wall of worry can squeeze higher… I don’t want it to happen but we just need to be prepared for the possibility.<\/p>\n
\nUpdate: November 3rd, 2015<\/h2>\n
And just like that, SPX is above 2100. The speed of this move is not something I’ve seen in years (2011)… I do think reversion is just around the corner but we need to adjust here.<\/p>\n
Here’s the trade right now:<\/p>\n
![\"spx\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2015\/11\/spx-before.png\")
<\/p>\n
As planned here’s what we are going to do:<\/p>\n
1. Close out the long calls for a profit:<\/p>\n
Sell to Close SPX Jan 2160 Call @20.10<\/p>\n
2. Roll the Put Side Higher for a credit<\/p>\n
Buy To Close Dec 1870\/1860 Put Spread @0.20<\/p>\n
Sell to Open Dec 1970\/1960 PUt Spread @0.80<\/p>\n
3. Use the profits from both of those trades to roll the call side higher.<\/p>\n
Buy To Close SPX Dec 2130\/2140 Call Spread @4.70<\/p>\n
Sell To Open SPX Dec 2160\/2170 Call Spread @3.00<\/p>\n
Do the trades in this order… if all the fills workout fine then there is no additional margin to this trade and the risk\/reward remains similar to when we initialized it.<\/p>\n
Here’s what the risk looks like after:<\/p>\n
![\"spx\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2015\/11\/spx-after.png\")
<\/p>\n
\nUpdate: November 30th, 2015<\/h2>\n
The sideways action over the past few weeks has really helped this trade out. We’ve overstayed our welcome to begin with so it’s time to bail on the trade.<\/p>\n
Buy to close Dec 2160\/2170 Call Spread @.50 or lower<\/p>\n
Buy to close Dec 1970\/1960 Put Spread @0.30 or lower<\/p>\n
Trade is sitting around 14% return on current max risk, but when I include the capital for the hedge bought it’s around 12% RoR.<\/p>\n
![\"spx-after-1\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2015\/11\/spx-after1.png\")
<\/p>\n
Margin Calculations<\/p>\n
Sold 10 Put Spreads @1.10<\/p>\n
Sold 10 Call Spreads @1.15<\/p>\n
Net Credit: 2.25<\/p>\n
Initial margin: 7750<\/p>\n
With hedge Cost: 8950<\/p>\n
Return Calculations<\/p>\n
Sold 10 SPX 1870\/1860 Put Spreads @1.10<\/p>\n
Closed 10 SPX 1870\/1860 Put Spreads @0.20<\/p>\n
Profit: $900<\/p>\n
—<\/p>\n
Sold 10 SPX 1970\/1960 Put Spread @0.80<\/p>\n
Closed 10 SPX 1970\/1960 Put Sperads @0.30<\/p>\n
Profit: $500<\/p>\n
—<\/p>\n
Total Put Side Profit: $1300<\/p>\n
—<\/p>\n
Sold 10 SPX 2130\/2140 Call Spread @1.15<\/p>\n
Closed 10 SPX 2130\/2140 Call Spreads @4.70<\/p>\n
Loss: -3550<\/p>\n
—<\/p>\n
Sold 10 SPX 2160\/2170 Call Spreads @3.00<\/p>\n
Closed 10 SPX 2160\/2170 Call Spreads @0.50<\/p>\n
Profit: +2500<\/p>\n
—<\/p>\n
Total Call Side Loss: -1050<\/p>\n
—<\/p>\n
Buy to Open SPX Jan 2160 Call @12.00<\/p>\n
Sell to Close SPX Jan 2160 Call @20.10<\/p>\n
Hedge Profits: 810<\/p>\n
—<\/p>\n
Put side profits: 1300<\/p>\n
Call side loss: -1050<\/p>\n
Hedge profits: 810<\/p>\n
Total profits: 1060<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Sell to Open SPX 2130\/2140 Bear Call Spread @1.15 or higher Sell to Open SPX 1870\/1860 Bull Put SPread @1.10 or higher We will remove delta if 2060 or 1930 is broken. Update: October 26th, 2015 2060 hit pretty quickly here. What we are going to do here is reduce risk by buying calls in […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":7,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":3,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[29,27],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/9671"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=9671"}],"version-history":[{"count":4,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/9671\/revisions"}],"predecessor-version":[{"id":9987,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/9671\/revisions\/9987"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=9671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=9671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=9671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![\"spx-risk\"](\"https:\/\/trades.iwopremium.com\/wp-content\/uploads\/2015\/10\/spx-risk.png\")
<\/p>\n