I closed my AEP trade accidentally. This is my new trade.
BTO Feb 38 P = 2.7
STO Nov 36 SP = .46
Cost = 2.24 debit
I recorded my Net Position Delta this time. NPD = 0.3 ( good )
I am getting 17% short premium over the long put. Anything above 10% is reasonable.
The trade IV is relatively low now. A rise in IV should be beneficial for the trade.
Primary Exit:
- if the trade hits 20% ROI.
- I may decide to roll down the SP if the trend is really bearish or else I will just close the trade
Secondary Exit :
- If the trend goes bullish, roll up the SP or if very bearish, cut loss.
- If the trend goes very bearish, take out the SP and let the trade run. At some signs of support, add the SP.
Subscribe to:
Post Comments (Atom)
Posts
I decide to close the trade to day.
ReplyDeleteBTC Feb 38 P for 2.9
STC Nov 36 P for .3
Total profit = 0.36
or ROI = 16% for 23 days
I expected to make more money but strangely the long put did not move as much as I expect. I believe this is due to the high dividend given and is built into the put when I bought it.