Rolling (IRA): SPY May 21st 381 Short Put to June 18th 389

85
... for a 2.75 credit.

Notes: Part of a longer-dated setup I started at the beginning of the year. With the 381 at >50% (See Post Below), rolling* out to June for a realized gain and a credit to the strike paying at least 1% of the strike price (i.e., the 389 is paying 4.05 at the moment). This naturally could be done in a more favorable volatility environment or on greater weakness, but looking at staying mechanical with this setup and bringing in credit versus waiting around for ideal volatility/weakness conditions.

Total credits collected of 9.49 + 2.75 = 12.24.

* -- Rolling involves buying back the option contract you sold and selling a new one either in the same expiry or a different one. (It's the inverse if you want to roll a long). You can do a roll as a two-step process (i.e., buy back the short put you previously sold and then sell a new one), but I generally opt for just doing it in one step.

Clause de non-responsabilité

Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.