#RocketManHedge – This has been kind of a fun/interesting trade/experiment. Originally put on synthetic short stock with a disaster call for 45.0 debit with max loss of 50.0 out in Jan 2018 monthly. Had enough time to sell about 4 points a week to cover max loss and still constantly carry about a 40 point downside hedge.
With the rally I’ve been selling much more aggressively and have already recovered all but about 12 points of the max loss and still have 6 weeks to run. Looks like the hedge will still be nicely profitable even though the market has gone completely against it. I’ll still sell aggressively with the plan to roll the short put out and down if we implode.
I’m happy enough with this type of hedge I may do it in slightly bigger size next time…
Bought to Close SPX DEC 1 2017 2600.0 Put @ .25 (sold for 10.50)
Sold SPX DEC 8 2017 2625.0 Put @ 7.10