Opening (Margin): SPX July 7th/August 18th 4255 Put Calendar

... for a 33.95 debit.

Comments: With IV at new 52 week lows, a bet that we get a volatility expansion at some point ... . Selling the front month 40 delta strike, buying the back expiry same strike.

Will look to money, take, run at 10% of what I put the trade on for.

Transaction en cours:

Rolled the July 7th 4255 to the July 14th 4255 for a 4.80 credit. Cost basis of 29.15. Revising the take profit to my original minus the credit I received for the roll (i.e., 33.95 - 4.80 = 32.55).

Commentaire:

Waiting ... is the hardest part. Basically what I monitor with these on a week to week basis is the value of the back month long to determine whether I should roll out the short option leg. Here, it's marking at 44.60, a value in excess of my GTC take profit order, so I don't need to do anything at the moment with the short leg besides wait for the extrinsic in it to piss out.

Trade fermée: cible de profit atteinte:

Given where the back month was delta was at, I had pretty much thought this was going to be a loser, but was willing to attempt to close it out for scratch if I got the opportunity, which I did today shortly after the open. Closed for 29.15 at 08:45:05.