SPY

Hi folks. I’m new to the bistro, but I’ve been tinkering with options trading for awhile, and I finally decided to start posting some of my trades in case anyone is interested.

This one is a bearish put butterfly that makes money if SPY pulls back. It also would have been profitable if SPY had gone nowhere after I put it on, but the market has been slowly climbing and now it’s nearing its upper expiration breakeven strike. If I were putting this on today I would use higher strikes, so that the trade would be reasonably profitable even if SPY expired right where it is now.

Currently, the position is showing a loss of $89. If SPY continues on up to the point where my loss reaches $250, I will add another butterfly at higher strikes to widen the tent. I will also try to avoid dealing with expiration week gamma by planning to close the week before if I can get any kind of decent profit.

Edit: Thanks to Hawk’s questions, I changed the plan for adjusting if SPY continues up. See the comments below.

Here’s the position:

#Bearish Butterfly

SPY Jan 15th (Monthly)
334 / 357 / 380 Put Butterfly BTO for 7.20
Max Profit $1580, Target Profit $500
Max Loss $720, “Take Action” Loss $250

I’ll update as I manage or close the position. If any of you are experienced butterfly traders I would appreciate any advice! Thanks!

Jan 2021 Put Butterfly

#takeonefortheteam

FDX CC / VXX Rolled

#coveredcalls
$FDX STO 12/31 265 call at .80

#shortputs
$VXX BTC 12/31 20.50 put and STO 1/8 20 put at even

VXX Put Rolls

Using the almost 1 point move up in VXX to bring in more cash and improve the strike prices on a few, for one more week.
Bought to close VXX 12/31/2020 22.50 Puts / Sold VXX 01/08/2021 22.50 Puts @ 0.23 Credit.
Bought to close VXX 12/31/2020 21.50 Puts / Sold VXX 01/08/2021 21.50 Puts @ 0.33 Credit.

Bought to close VXX 12/31/2020 20.50 Puts / Sold VXX 01/08/2021 20.00 Puts @ 0.05 Credit plus a 0.50 lower strike.
Bought to close VXX 12/31/2020 20.00 Puts / Sold VXX 01/08/2021 19.50 Puts @ 0.10 Credit plus a 0.50 lower strike.
(This is the first chance to rolldown VXX in the money Puts that I’ve seen in a couple of weeks)

VXX Calls

Since there are no decent premiums for this week, selling some for next week.
Sold VXX Jan 08 2021 23.0 Calls from $0.25 up to $0.35.
Sold VXX Jan 08 2021 24.0 Calls from $0.22 up to $0.27.
Sold VXX Jan 08 2021 25.0 Calls from $0.19 up to $0.25.

VXX topped out at 17.76 so far today.

TQQQ, BTC December 31, 130…

TQQQ, BTC December 31, 130 puts at .02, sold at 3.50, I am still waiting to get filled on more positions for this week.

QS

#ShortPuts – Out yesterday and back in today…

Sold QS JAN 15 2021 60.0 Put @ 2.20

SQ Feb

Sold $SQ 2/19 180 put @ 5.00

SPX 7dte

#SPX7dteLong Bought to Open $SPX Jan 6th 3705/3725-3735/3755 iron condors for 17.05, with SPX at 3730.

TSLA

BTC on GTC order at 50% of max profit….TSLA 19 FEB21 425 PUT @4.95 with the stock @ 666.69….This was STO on 12/22 @10.25….#ShortPuts

PLTR WIX MARA VLO CC / MRVL Put

#coveredcalls
$PLTR STO 12/31 26 call
$WIX BTC 1/15 290 call and STO 1/15 280 call at 1.40 added credit
$MARA STO 1/15 14 call at 1.60
$VLO BTC 12/31 58 call and STO 1/8 56.5 call at .95 added credit

#shortputs
$MRVL STO 1/8 46 put at .70

LABU

#ShortPuts – Welcome back to the game ol’ buddy. Starter position outside the expected move and down at the 200ma and lowest available strike. Hope to add…

Sold LABU FEB 19 2021 60.0 Put @ 2.10

Closing DOCU

Bought to close $DOCU 1/15 185/195/260/270 iron condor @ 1.23. Sold for 2.95 on 12/9.