#Eminis – The experiment continues. The market weakness has finally allowed me to make some adjustments. Covered a couple short contracts earlier for even after riding them all the way up and back down. This left a few uncovered puts that I rolled down and out to Jan Feb Mar and Apr in 1650-1750 range. Now that I’ve got a little room on the short side I’m legging into some strangles when we get a little strength.

Starting with this:

SOLD /ES JAN 16 2100 CALL @ 18.00

Paired with a 1900 put that’s only worth 6.00 making total value of the strangle 24.00 so max gain of $1200 per strangle. Had I been more patient on the put side I believe these strangles could easily bring 30 points total. This position ties up about 8 thousand margin per strangle with the option to take a long or short position if they get ITM as well as rollability.

I’ll be looking to add the call sides further out if we rally into the end of the year…