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August 2021 Trades
Hey, all. I didn't see an August post yet. I made a cash purchase on a house, so I'm on hold with the SPX put strategy until I can do a cash out re-fi.
New record highs with a VIX around 15 or 16.
Regarding strike choice, how many pts away and what kind of credits are you guys comfortable with in this environment?
My trades today: strikes between 4300 and 4375 for Wed expiration. Sold the lower strikes puts early in the morning when the market was still underwater.
Premiums are meager: 0.87 on average. Waiting for the next deep drop!
4350-4000 depending on time of day for me. Premiums averaged 1.4.
If I were trading 1 XSP while working I’d be up at 15 delta or more. If I were trading 10 SPX and in retirement I’d be closer to ERN’s premiums.
In addition to the often discussed volatility and market factors, I also consider my leverage target and the portfolio of assets I hold for margin. Together these four factors drive most of my decision of where to set strikes.
Monday - I sold the Wednesday Puts at 4390 and 4400 near the close for 1.20 and 1.30.
Tuesday - I sold the Friday(AM) Put at 4300 near close for 1.65.
Need to risk off a bit to wait for a bigger drop to get the VIX up and relieve some pressure.
I'm back! and trading the /ES puts until my account gets re-funded and my portfolio margin status is reactivated.
I got the /ES 4255, 4265, and 4300 strikes for Fri. w/ an avg credit of 1.08. Sold them mid day Wed. Took a bit of heat towards the end of the day and this morning. Back to break even at Thurs. close
<I also discovered the risk limits at TD Ameritrade. Despite having the margin, this trade fails the black swan liquidity test and I'm limited to closing transactions only>
Help (cash) is on the way.