Wednesday, January 1, 2020

Closing the $ROKU short put and call credit spread entries


6 jan - closed all 3 legs today
closed all 3legs today on the runup $ROKU, not sure what the news was. lost some on the credit call spread, made more on the short put. rather have it not breach the call strikes with opex this friday , 17% of max profit

didn't see anything significant as to why the up move. NFLX as well. regardless stock at 143 and with 4days till opex was threatening the 145/150 call credit spread. so instead of having it breach and having to roll and adjust for weeks I went ahead and closed the position. hindsight 20/20 the short put would have done better by itself. mark to market loss on the credit call spread but better profit on the short put. closed at $2.75 after taking in 3.32. makes it a 17% of max profit winner. not large dollars but proving the concept still before sizing up. frees up buying power for the next one.

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31dec - on 26 dec I sold a cash secured put for ROKU the Jan10 130 for $2.60 , 15days to opex, 20 delta when stock was 144. stock is down 12points since then at 132ish today. in order to add some more premium to this trade I sold a credit call spread same opex at .72 , the 145/150 . 23 delta at time sale. IV for ROKU is increasing so not getting any vol crush.

revised credit for this poor mans strangle (short put/ credit call spread) is $3.32 (2.60 + .72)

9days till opex. blue lines on chart are this trade, purple are another iron condor



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