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This week's analysis has been published at LTOptions.com

Download Weekend Portfolio Analysis (2018-02-17).pdf

If the above link doesn't work for you, simply log in to LTOptions.com, navigate to the "Weekly Analysis" tab and download the document from there.

The Weekend Portfolio Analysis will be available on this site next week for historical reference.

All currently open positions can be seen on the 2018 Track Record page


Last Weekend Analysis now publicly available:
Weekend Portfolio Analysis (February 10, 2018) 
Recent Trading Activity

- No Activity

Market Conditions
(Click on image to enlarge)
Stochastics: 87 (Overbought. Up from 19)
McClellan: +71 (Neutral. Up from -224)
Stocks above their 20 DMA: 40% (Neutral. Down from 10%)

No man's land.

From Oversold we are back to No man's land. The incipient bullish divergence mentioned here last week played out nicely. The SPX is at an interesting point right now as it approaches what for years was resistance on the way up. It failed to break it on a first attempt, we'll see how it fairs next. There's plenty of room to break it and with the index this close to its 50 day and with only 40% of stocks trading above their respective 20-day average, getting past that resistance point should not be a problem. That would make the up-trending resistance line, that for so many years was in play, pretty much irrelevant.

VIX still elevated above 20, combined with a no man's land condition makes this a good environment for neutral plays. In fact I'm going to take advantage of it early in the week.

The Russell Index:
(Click on image to enlarge)
A little farther from resistance than the S&P, and also near the 50-day average. Plenty of room to move here. There is a March Unbalanced Iron Condor here that I'm planning to liquidate.

Current Portfolio

These are the current positions:

The SPY Calls and SVXY Calls expire in December and January of next year. Same as the Synthetic stock position, which is equivalent to being long 200 shares of SPY, but needing much less buying power. The goal with all of them is to hold them for as long as possible. They may fail, of course, but they are calculated risks. All the SPY and SVXY Calls barely add up to seven thousand dollars. Or 7% of the original 100K portfolio. The synthetic SPY stock position occupies decent room (13.8K), but since it is the same as being long stocks, there is no way to lose all that money. For example if SPX finishes the year at 2500 (SPY 250), it would be a 14 point loss (from artificially long stock at 264). So, 14 points multiplied by 200 synthetic shares would be a $2800 loss. A similar calculation can be done assuming SPY finishes the year at 240, 230 etc.
Let's now look at the income plays.


Mar. RUT 1320/1330/1680/1690 Unbalanced Iron Condor
Net Credit: $1,840. Four weeks to expiration.
(Click on image to enlarge)
Defense lines: 1373 (adjust Put spreads). 1650 Close Call side at a loss. Both extremely unlikely. With the recent volatility contraction, almost all the profit has been made in this position.


June. SPX 2025/2050 Credit Put spread
Net Credit: $1,320 and seventeen weeks to expiration
(Click on image to enlarge)
Defense line: 2250 (adjust the Put side). Rough estimate as it is so far out in time.


Action Plan for the Week

1- I'll liquidate the March RUT Unbalanced Iron Condor. I usually let them get closer to expiration but with 90% of the profit made and still four weeks to expiration, there's no point in waiting this time. Also, 57K of the portfolio is invested, and the size of the portfolio is now roughly 72K after the large draw-down. So, with only 15K of capital being free, it will be necessary to close a position in order to deploy a brand new one.

2- I'll initiate an April SPX position. You can go with either a 4:1 Unbalanced Iron Condor 2440/2450/2915/2925  or an Unbalanced Elephant (same SPX strike prices) with additional long SPY Calls (Read Elephants vs Iron Condors (Full Comparison)).
The Number of contracts for the SPX Elephant on a large portfolio would be 20/20/8/8 plus 6 SPY Calls (strike 292).
For a smaller account (20 grand) you can play 4/4/2/2 plus 2 SPY Calls, or 4/4/4/4 plus 5 SPY Calls.
For an even smaller account (10 grand) you can play the Elephant as follows: 2/2/1/1 plus 1 SPY Call. I'm thinking of opening the position early in the week, to be as faithful as possible to the aforementioned strike prices and take advantage of the elevated VIX while it lasts.


3- As for the June SPX 2050/2025 Credit Put spread, there's no way I'm holding that for 17 weeks. Original credit per spread was 1.65. I'll gladly exit early for 0.40 debit, booking a 1.25 gain per spread ($1000 in 8 spreads).



Economic Calendar

Monday: US Markets closed for Presidents' Day.
Tuesday: German's ZEW Economic Sentiment and Inflation Report.
Wednesday: US Manufacturing PMI, Existing Home Sales, FOMC Minutes.
Thursday: European Central Bank publishes Account of Monetary Policy Meeting.
Friday: Europe CPI

Good luck this week folks.
LT


If you are interested in a responsible and sustainable way of trading options for consistent income with solid risk management, consider acquiring LTOptions, my options trading system to the last detail.

Check out 2018 Track Record


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This week's analysis has been published at LTOptions.com

Download Weekend Portfolio Analysis (2018-02-10).pdf

If the above link doesn't work for you, simply log in to LTOptions.com, navigate to the "Weekly Analysis" tab and download the document from there.

The Weekend Portfolio Analysis will be available on this site next week for historical reference.

All currently open positions can be seen on the 2018 Track Record page


Last Weekend Analysis now publicly available:
Weekend Portfolio Analysis (February 3, 2018) 
Without a doubt, this was the worst week (Credit Spreads trading wise) since I started writing on this site seven years ago. So far in 2018, not a single Iron Condor or Elephant has worked. They have been either hurt on the Call side, or on the Put side, or both.

Despite inevitable bad streaks in the past, I was never down more than 15%. Well, this time I am. 27% to be precise. And it is important to make a pause an analyze why this happened.

- Aggressiveness on the Call side. I started the year finding myself on a couple of 2:1 Iron Condors. Thinking we were too overextended to the upside, I became aggressive using 2:1 ratios instead of the 4:1. Well, I was right that the markets had gone too far up, but not right on the timing. The 4:1's were the variation to play, and not only looking at it in retrospective. No. That was the variation to play, simply because that is the one. The one profoundly learned after years experiencing how uncomfortable an inefficient it is to defend the Call side. Playing aggressive Call sides led to taking unnecessary additional losses, which, later led me to try to make up by selling more Credit Put spreads than usual, and that causes to the second problem.

- Risk Concentration. On Monday there was a point where I was riding five different Credit Put spreads. This is sacrilegious in the original LTOptions materials, where riding three spreads on the same direction was deemed the max healthy limit. Talking about concentration. In the previous weekend analysis, I mentioned that one of two RUT Credit Put spreads needed to be closed due to similarities in the projected adjustment point. I could have done it early on at a small loss or a scratch on Monday, and not taken two losses as it eventually happened.

Not being aggressive on the Call side on the way up would have made my losses smaller. Consequently the desire to make up for them quickly (by selling more Puts) would have been smaller, leading to less risk concentration on the Put side and eventually smaller losses on that side of the spectrum too. Losses would have existed. No doubt about that, but the draw-down I'm seeing today would have been way smaller (around 10% instead of 27%).

I could mention other mistakes, like thinking that markets don't crash from all-time highs. Another confirmation that markets can do anything at any time including breaking any previous record of whatever stat you are looking at. Finally complacency. Years of relentless bullish action that lead to overconfidence on the Put side.

The original principles of the system are fine, and I'm going back to them. It is rarely the strategy who fails when it has been designed with risk calculation in mind. It is usually leverage that kills you. And this is a case of that.

It is at times like this one when most just want to throw the towel. And I get it.....
I had a conversation on the phone this week with someone who wanted to end his life due to recent losses in the market. I tried to somehow talk him out of that. This is a tough game. The market is serious stuff with real lives and destinies being affected. Anyone who says otherwise is full of it.

...For me, throwing the towel, walking away and never writing again would have been the easy way out. I won't. I never will. Even if I finish the year down 100% and end up totally ridiculed. At least, that would leave more value on one corner of the Internet. A legacy about  "what one must absolutely not do when trading Credit Spreads".


Recent Trading Activity

Monday
Closed Feb. RUT/IWM - 1455/1460 - 147 Elephant Put side $5500
Opened Feb. RUT - 1340/1335 Credit Put spread ($1400 credit)

Closed Mar. RUT - 1450/1440 Iron Condor Put side $3940
Opened Mar. RUT - 1330/1320 Credit Put spread ($1400 credit)

Closed Mar. SPX/SPY 2940/2950 - 295 Elephant Call side for gains $379
Closed Mar. SPX 2615/2625 Elephant Put side $2980  
Opened Mar. SPX 2400/2390 Credit Put spread ($1280 credit)

Opened Apr. RUT - 1330/1320 Credit Put spread ($610 credit)   

Bought 2 December SPY  295 Calls @5.28 debit
Bought 1 January 2019 SVXY, 120 Call @18.50 debit
===============================================================

Tuesday
On Tuesday morning, I basically woke up with the decision to liquidate the excessive Put side exposure, without waiting for 30 deltas or anything like that. I only left the two safest positions on.

Closed Apr RUT - 1330/1320 Credit Put spread (which had been initiated the previous day) $540

Closed Mar SPX - 2400/2390 Credit Put spread (which had been initiated the previous day) $1320

Closed Feb RUT - 1340/1335 Credit Put spread (which had been initiated the previous day) $1200

Closed Feb SPX - 2625/2620 Credit Put spread $1200
Closed Feb SPX 2520/2525 Credit Put spreads $0

Opened SPX June 2050/2025 Credit Put spread ($1320 credit)

Bought SPY - December31 Long 287 Calls  @7.24 debit 
Bought SVXY - January 2019 Long 17.5 Calls  @4.75 debit  
Bought SPY - Dec Synthethic stock (long 264 Call/Short 264 Put) same as being long 200 shares

===============================================================

Wednesday
Bought SVXY January 2017 Long 13 Calls @4.85 debit

Market Conditions
(Click on image to enlarge)
Stochastics: 19 (Oversold. Up from 13)
McClellan: -224 (Oversold. Up from -272)
Stocks above their 20 DMA: 10% (Oversold. Down from 25%)

Oversold

Except for the number of stocks above their 20-DMA, the other two oscillators are higher than last week, and yet prices are lower than last week. So, now it is the opposite situation: an incipient bullish divergence. The number of stocks above their 20-DMA is ridiculously low. In the longer time-frame, 49% of stocks are above their 200-Day average. So, there is still downside room. It's been a while since the market last closed below its 200-Day. It's overdue and looks like it will happen this year. My bet is that the current sell off however, is near its end and eventually we touch the 200-day later this year.

The Russell Index: (Click on image to enlarge)
Both indexes are now similarly oversold. Both close to the 200 day average. The long term uptrend support is a little lower for RUT but those tend to not matter during true panic situations. Same view here: I think the sell off is near its end, opening the door to more normal price action.

The good thing is that it will be hard to suddenly go back to the old 9-10 VIX days. Many traders will be more fearful of recklessly selling volatility for a while, until the recent pain fades away from their memories. That may take a while. VIX at 29 is way above its historical average. So, we know it will come down, but as long as it stays between 15 and 20, it would be wonderful, finally, for the options selling business.


Current Portfolio

These are the current positions:

Too many of them to go one by one, plus really far out in time.
The SPY Calls and SVXY Calls expire in December and January of next year. Same as the Synthetic stock position, which is equivalent to being long 200 shares of SPY, but needing much less buying power. The goal with all of them is to hold them for as long as possible. They may fail, of course, but they are calculated risks. All the SPY and SVXY Calls barely add up to seven grand. Or 7% of the original 100K portfolio. The synthetic SPY stock position occupies decent room, but the only way all that money is lost is with SPY going to zero, because it is the same as being long the stock.

As for SPY long Calls, I'm not done yet. I will add 1% or 2% more when/if we close firmly below the 200 day average. I also sold December SPY 185 Puts for 4.00 credit on Friday. Naked Puts. However, I will not reflect that position here. First because I have never discussed naked options selling. Second because this was not the trader but the investor in me. This is me saying, hey, give me $400 bucks Mr Market, and if you are below SPX 1850 by December expiration, please, do assign me SPY shares at a cost basis of 181 and I will be a happy long-term shareholder.

Let's now look at the income plays.


Mar. RUT 1320/1330/1680/1690 Unbalanced Iron Condor
Net Credit: $1,660. Five weeks to expiration.
(Click on image to enlarge)
Defense lines: 1395 (adjust Put spreads). 1640 Close Call side at a loss.


June. SPX 2025/2050 Credit Put spread
Net Credit: $1,320 and eighteen weeks to expiration
(Click on image to enlarge)
Defense line: 2330 (adjust the Put side). Rough estimate as it is so far out in time.


Action Plan for the Week

1- This week will be a matter of defending the Put sides when/if necessary.

2- I'll buy more SPY Calls after a close below the 200 Day moving average.

3- I want to open an April RUT or SPX Put spread. We are still 10 weeks away from April expiration and I already have two credit Put spreads in play. So, I'm going to wait. That would be triple Credit Put spread exposure. Granted, with volatility already elevated it is different than with VIX below 10. A much nicer opportunity now. I guess I'll wait to see if we get more ridiculously oversold that allows me to enter a Credit Put spread in the low 2200's for SPX, or the low 1200's for RUT. But, on a market rebound, I'll just stay Put and do nothing for now.



Economic Calendar
It was kind of funny to see the financial networks trying to find a "headline" to justify the recent market sell off. Nop. Pure offer vs demand in the face of overvaluations.

These are the main events in the Economic calendar this week:

Monday: US Federal Budget Balance.
Wednesday: Germany's GDP and Europe GDP. Europe Industrial production. US Retail and Core Retail Sales.
Thursday: NY Empire State Manufacturing Index. Philly Fed Index. PPI.
Friday: Building Permits, Housing Starts, Michigan Consumer Expectations.

Trade safely my friends.
LT


If you are interested in a responsible and sustainable way of trading options for consistent income with solid risk management, consider acquiring LTOptions, my options trading system to the last detail.

Check out 2018 Track Record


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Trade Details:
 
SELL TO OPEN 8 June SPX 2050/2025 Credit Put spreads
Credit: 1.65 ($1,320)


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Trade Details:

BUY  2 SPY 264 December31 Calls @19.65
SELL 2 SPY 264 December31 Puts  @17.86

Net: 1.79 debit ($358)
Margin consumed on entry ($13,800)

This is equivalent to being Long 200 SPY Shares but investing much less money. Of course, without the benefit of holding indefinitely and without the dividends.


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Trade Details:
BOUGHT 1 January 2019, 120 Call @18.50 debit

This was at 2:51 pm
SVXY Was trading at around 86 at the time I opened this position.

Now, after hours, SVXY is trading near 15. Talk about a move.


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Trade Details:
BOUGHT 2 December31, 295 Call @5.28 debit


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Trade Details:

SELL 10 April RUT April 1330 Put @9.16
BUY  10 April RUT April 1320 Put @8.55

Net Credit: 0.61  ($610)
Days to expiration: 73

Only half position due to excessive portfolio exposure.
RUT still in the 1500's. I think these are good odds.


Check out 2018 Track record


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If you follow a trading newsletter and you want to be alerted about new incoming emails as soon as they are received, you can set up sound alerts (and visual alerts too). This is a useful tool not only for following a day trading newsletter. Really you can configure it to receive alerts from a particular sender, whoever that person or business is, and whatever your reasons are that require immediacy.

The below procedure works for Gmail and you need to have the Google Chrome web browser installed in your computer.


CREATE  A  LABEL  AND  A  FILTER

The first thing you need to do is isolate all incoming communication from the specific source you want to be alerted about. You simply want to create a folder where emails from this person/company flows into, instead of the usual "Inbox".

For this purpose we are going to create a "Label".
I am going to create an "Alex" label, where I want all communication coming from a fictitious "Alex Stan" to flow.

So, just find the "Create new label" link in Gmail.


The following dialog pops up.
I'm going to name my label "Alex" as I said earlier

After clicking "Create", a new "Alex" folder will appear now along with the existing "Inbox", "Important", "Sent Mail", "Trash", etc.

The next step is to find a message that we have received from this person in the past, in order to create the filter rules by which Gmail will move the emails from this person directly into the "Alex" folder from now on:

You simply open the email and click on "Filter messages like these"

In the filter creation process, we are going to check off the following three options:
By clicking on the "Create Filter" button, we are done with this first part. Going forward, any email coming from Alex will go directly to our "Alex" folder (label) instead of staying in "Inbox".


SET  UP  GMAIL  NOTIFIER  EXTENSION

Once we have our Label and Filter created we need to add the Gmail Notifier extension. For that, open up your Google Chrome web browser and navigate to this URL:

https://chrome.google.com/webstore/detail/notifier-for-gmail/dcjichoefijpinlfnjghokpkojhlhkgl?hl=en

This URL may change in the future, in which case you'd have to do a search for Gmail Notifier Google Chrome Extension on the Internet.

Anyways, this is what that page looks like when you hit it:
Just click the "Add to Chrome" button at the top.
The Gmail Notifier web browser extension has now been added to your browser and all we need is to configure it.


Right after adding Gmail Notifier to the Chrome browser, a Gmail icon will be displayed on the top right corner of your browser (Red Arrow). Clicking on it brings up a preview of your currently unread emails:

Click on the Settings button to start configuring the alerts on this thing (Green Arrow).
Note: If your inbox is empty, then clicking on the "Gmail Icon" (Red Arrow) may not bring up the panel with the Settings button. In that case, do a right click instead and on the contextual menu that is shown, click "Options". The result is the same and you end up landing on the Settings page.

In the image below, you see that I specified "alex" as one of the labels I want to receive notifications from:
And that's it!
You can play with tons of options in that Settings page:

- You can select your own alert sound, browsing to a sound file of your own in your PC.

- You can specify how loud you want the alert to be played.

- GMail Notifier displays a visual pop up alert in tandem with the sound alert. This visual alert contains a preview of the email message. You can define how long you want the visual alert to show up for. Setting it to something like 3600 seconds would keep the alert visible for an entire hour.

- You can configure a time based reminder for every X Minutes. So, if you don't check the email, the alert sound will be triggered again until you finally check your email. This, combined with the pop up staying visible guarantees that you eventually learn about the new email, in case you were away form the computer when it came.

Finally, a second test email from the fictitious Alex, and voilà:


The alert is displayed near the bottom right corner of your screen, along with the sound. It will show up on top of whatever it is you are doing. There's no way to not see it. Now you don't need to constantly be checking your email anymore.

I hope this helps more than one out there.
LT


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This week's analysis has been published at LTOptions.com

Download Weekend Portfolio Analysis (2018-02-03).pdf

If the above link doesn't work for you, simply log in to LTOptions.com, navigate to the "Weekly Analysis" tab and download the document from there.

The Weekend Portfolio Analysis will be available on this site next week for historical reference.

All currently open positions can be seen on the 2018 Track Record page


Last Weekend Analysis now publicly available:
Weekend Portfolio Analysis (January 27, 2018) 
Important Note 1: New material has been added to the LTOptions's library. Elephants vs Iron Condors (Full Comparison) is an eBook that details among other things: key differences between the two strategies; pros and cons; which one performs better according to the environment; evolution of the T+0 line over time, etc. This new eBook is visible on the page that comes right after logging in: 


Important Note 2: Some modifications have recently been made to the 2018 Options Trading Plan. The changes are focused on efficiency and simplicity when defending Credit Call spreads. Log in to LTOptions.com and consult the 2018 Options Trading Plan ebook.


Recent Trading Activity

- Closed the Mar. SPX 2900/2905 Credit Call spread partially hedged with Long SPY 290 Calls
on Monday at a $1770 loss. Pretty bad timing here. Had I followed the original plan of holding until SPX 2895, well, I wouldn't have taken this loss. Psychology, psychology, psychology.

- Initiated a March SPX Unbalanced Elephant on Thursday for $1,527 credit. Also, awful timing here. Had I opened a position on Friday instead of Thursday, it would have been just Credit Put spread much lower down thanks to the oversold condition reached. Perhaps a good lesson that when we are so close to overbought, it is better to not rush an entry on Thursday and instead wait until Friday to see if the oversold condition materializes.

Market Conditions
(Click on image to enlarge)
Stochastics: 13 (Oversold. Down from 88, 93 and 95 the weeks before)
McClellan: -272 (Oversold. Down from -11 and -11 the previous weekends)
Stocks above their 20 DMA: 25% (Oversold. Down from 65%, 70% and 74% the weeks before)

Oversold

Finally the bearish divergence played out. We are now in a short-term oversold condition. The market has more to correct in the long run if you consider that more than 60% of the stocks are trading above the 200-day average. But, short-term, we have quickly reached and overly pessimistic environment. As usual, accompanied by higher volatility with a VIX above 17, something that we hadn't seen since the days prior to the 2016 election.

Usually by the time an oversold condition is reached, the index is below its 50-day average. The SPX is, however, still higher than its 50-day. It is wise to tread carefully here. It is a good time to deploy out of the money Credit Put spreads. Unfortunately, I have more exposure than I would like, but I'll still try to take advantage of this environment, possibly with a RUT Credit Put spread around 1330 (April expiration). Speaking of RUT:

(Click on image to enlarge)
Less stretched than the SPX. The Russell is already below its 50-day average, hence the reason why I would choose this one for a Bull Put spread position.


Current Portfolio

Feb. SPX 2520/2525 Credit Put spread
with additional 2625/2630 Credit Put spread
Net credit: $1,300. Two weeks to expiration.
(Click on image to enlarge)
Defense line: 2,630 (adjust the small 2625/2620 Credit Put spread) and then 2600 is the trigger for adjusting the 2525/2520 Credit Put spread. I think those positions are both safe and that we are unlikely to see SPX 2630 (currently at 2762) in the next two weeks. So, I am willing to keep holding these.


Feb. RUT/IWM - 1455/1460 - 147 Elephant Put side
Net Credit: $1,060. Two weeks to expiration.
(Click on image to enlarge)
Defense line: 1,495 (adjust Put side). It was looking much safer before. Right now we can't say it is in deep trouble or anything. It is about break-even and at the 11-delta mark.



Mar. RUT 1440/1450/1680/1690 Unbalanced Iron Condor
Net Credit: $1,680. Six weeks to expiration.
(Click on image to enlarge)
Defense lines: 1510 (adjust Put spreads). 1640 Close Call side at a loss. So, there is some risk concentration between this position (to defend at RUT 1510) and the previous one (to be defended around RUT 1495). It would be more uncomfortable if the estimated adjustment points were both 1510, a risk I would stay away from by immediately closing one of them. With 1510 and 1495, there is some room though. I'm willing to hold, but short leash. More details in the Action Plan section.


Mar. SPX/SPY 2615/2625/2940/2950-295 Elephant
Net Credit: $1,527 and six weeks to expiration
The position entered 48 hours ago, quickly got under water. Yep, it hasn't been kind.
(Click on image to enlarge)
 Defense line: 2720 (adjust the Put side). Could be lower, perhaps 2,715 or 2,710. To the upside, SPX 2880 triggers a closure of the Call side of the Elephant.


Action Plan for the Week

1- I want to take advantage of the current elevated volatility and oversold environment by selling a RUT Credit Put spread. The problem though, is that I have exposure in February (2 positions) and March (2 positions). Adding a fifth one would be a risk level I'm not comfortable with. So, I will most likely close the Feb RUT Position, which is the Put side of what originally was an Elephant. It can be closed at about break-even, reducing the RUT risk concentration that exists anyway when combined with the March RUT Put spreads (part of Iron Condor). Then, I'll be free to deploy capital. I will go with April in this case to add some time diversification. RUT is currently at 1,547. April Credit Put spreads around 10 deltas are in the 1330-1340 area, which is about 15% lower than current levels. It sucks to close a position (Feb Puts) at break-even after so much holding. The other alternative is to keep holding those and deploy a small April RUT Credit Put spread instead of a full position.Just half or a quarter the typical size.

2- I'll close the Call side of the SPX March Elephant for 75% of its max potential profit. I got $760 from the 2940/2950 Credit Call spreads, minus $333 debit invested in SPY 292 Calls. So, the net credit and max potential profit is $427. 75% of that is $320 and the current gain is close to $360. This gain may dissappear on a huge gap up on Monday. But if that is not the case, I will be closing it with the expectation of redeploying it if there is a market rebound from here until expiration.

3- Other than that, potential adjustments to the Put side of the March SPX Elephant if the short Puts reach 30 deltas (SPX around 2,720). The new Put spreads would be around the 2,450 strike prices. Similarly, I'd be adjusting the Put side of the March  RUT Iron Condor, if the short Puts reach the 30-delta mark (RUT around 1,510). The new put spreads would be those that are around the 10-delta mark by then, which can be near the low 1300's.

4- Last week I mentioned the idea of opportunistically buying some options .... (This is a more long-term action plan, only available inside LTOptions.com).


Economic Calendar
Pretty light this time around.

Tuesday: ISM Non-Manufacturing PMI.
Thursday: ECB Economic Bulletin.

Be wise, trade safely.
LT


If you are interested in a responsible and sustainable way of trading options for consistent income with solid risk management, consider acquiring LTOptions, my options trading system to the last detail.

Check out 2018 Track Record


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Trade Details:

20 SPX 2615/2625 Credit Put  spreads 0.55 Credit ($1100)
  8 SPX 2940/2950 Credit Call spreads 0.95 Credit ($760)

plus

9 SPY Long 295 Calls @0.37 (-$333)
I didn't add the Long Puts in this case

Net Credit: $1526
Days to Expiration: 43

This is for a $100,000 model portfolio.
For a $20,000 portfolio, some tweaks can be made and play 4/4/2/2 + 2 instead  ($336 credit overall)
For a $10,000 portfolio, it could be 2/2/1/1  + 1 ($168 credit overall)

Profit picture:
(Click on image to enlarge)


An SPX Chart for future reference and self-study:
(Click on image to enlarge) 


For details about the management of Unbalanced Elephant positions consider an LTOptions.com membership, where there is also material that discusses how to put this type of position in small accounts too.

Check out 2018 Track Record


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