#Futures – Love having some protection up here while gradually raising the basis.

I’ll take assignment Friday of a short /ES position @ 2396 basis. Sold a Jul 2400 put against it @ 27.00. That’s nicely profitable now so setting a stop on it at breakeven. Since it’s basically safe I’m adding an Aug put also.

SOLD /ES AUG 17 (Wk3) 2350 PUT @ 16.50

If we tank from here I’ll get stopped out at even on the Jul put and can then ride the short /ES down to 2350 and then decide where to roll the Aug put. Still decent downside protection but also the ability to raise the short basis all the way to 2440 if we don’t implode.

EDIT…actually it looks like Jun contracts expire Friday. I’ll need to roll that call out a week and then take assignment of the Sep contract.