CLOSE: SPX Speed Trade, above Profit Target
Trade Rationale: 29 Dec (Close)
As posted yesterday, I wanted to close this trade and capture profits as soon as the market opened. After less than an hour after opening, the Profit Target was reached and I entered the orders to close the trade and capture the profits. In fact, I could have waited some more time in the trading session to close, but it would better not to be too greedy. It was a great trade, in fact: 12.5% in 3 days! What can we ask more?
Position finale:
The trade produced $210 or 12.5% in 3 days!
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Trade Rationale: 28 Dec (Adjust 2)
SPX is moving continued to move down (about 0,90% at the time of entry) and the Delta of the trade was again about 5. So, I added another Vertical to "diagonalise" the trade and keep Delta under control. Theta continues massive!
Position status:
The trade is positive.
Profit target:
Let's assume a PT of $150 or circa 10%
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Trade Rationale: 28 Dec (Adjust)
SPX is moving down (about 0,50% at the time of entry) and the Delta of the trade was reaching about 5. I decided to change one of the 3 lots into a Diagonal to reduce the positive Delta to 2. Theta is massive and is about 800... Let's continue to monitor Delta closely in order to maintain it under control (-5 to 5 is ok). In case the market continues to move down, I will adjust another lot (another Diagonal).
Position status:
The trade is now positive.
Profit target:
Let's assume a PT of $150 or circa 10%
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Trade Rationale: 27 Dec (Open)
For a long time, I did not open this type of trade. Today I took this decision because I feel the market is slow due to "vacations" period. The expirations in this Speed Trade are very aggressive. The front-month is on 30th Dec, which is next Friday (3 DTE)... and the back month is 3 Jan (7 DTE). This pair presents an attractive IV structure as the front option is at 19% and the back option is 15%, turning this trade cheaper. Tomorrow, I am expecting to close this trade and collect some profits... remember this is a very aggressive trade!
This trade is producing a huge amount of Theta... for the 3 lots opened, it delivers more than 600.
Position status:
The total investment for the 3 lots is $1680.
Profit target:
Let's assume a PT of $150