Trade Update - Closing a Winner and a new Position

Hi Steemians,

markets are selling off nicely today.

source:tastyworks

Implied volatility exploded simultaneously.

source:tastyworks

Closing SPX Put Calendar:

source:tastyworks
I bought this put calendar for $14.65.
Today I was able to sell it for $15.65. So I made $1 ($100 per one lot) in profit.

To hedge all my short vegas, I need some short deltas.
When IV is high, I like to sell broken wing call butterflies.
In all the index ETF's QQQ (Nasdaq) has the highest IVR.
So I go with a

QQQ Broken Wing Call Butterfly:

source:tastyworks
As you can see, there is no risk to the downside, but the max profit ($5, $500 per one lot) is to the upside, at the short strike (175).
My profit target for BWB's is 25% of max profit, so 500*0.25 = $1.25 ($125 per one lot).

This week we hit the 21-23 DTE threshold for my remaining July position in IWM, so I'm going to close and reestablish by no later than Friday.

Good luck trading,

Stephan Haller

P.S. My book on options trading is in still in review.
We’ll see where and in which form it gets published in early July.
Stay tuned and watch https://www.tastytrade.com/tt/ while waiting.

Legal disclaimer: These are not trade recommendations. Options involve risk and are not suitable for all investors. The trades shown above are for educational purpose only.