Update 9.3. - Closed these positions
I normally do not give updates within the blog. But today is a special day as it does not happen very often that we see a circuit breaker on the SPY. We were able to make some strange trades and we could close a lot of open positions which looked lost just some days ago.
Getting rid of lost positions
As mentioned in our blog "Sell-Off ahead" we tried to get rid of open positions in KBR and EPRT. They were worthless last week and would expire soon. With todays volatility and the falling market we could sell them for great prices so that both strangles ended with an overall profit. We also sold our LYFT call. Although this one was running until January we wanted to close this strangle and move forward.
If Calls & Puts gain the same day
I have to admit that it is ages ago that I experienced a day were both sides of a strangle gain in price. Today was such a day. We went to LEAPs to get calmer and not sell too fast, but sometimes you have to jump over your shadow and act against your strategy. Against all odds we closed two LEAPs which we just opened last Friday. XOM & SPY were just too tempting. SPY was running until 2022 and XOM until 2021 but with a profit of 106% and 92% I just had to close these positions where BOTH the call and the put were in profit.
I might re-open strangles on both at market close or tomorrow or during this week when the smoke has settled and the prices are more reasonable.
Fast trade with VXX
Friday I opened a May strangle on VXX and the volatility jumped huge today. With a gain of 47% I am very happy as I am not sure if the volatility will further increase that's why I went out.
Selling half position on HSBC
A new angle for myself is the idea to sell only half a position when the option is huge in the money but the expiration is way into the future. I did this today for the first time with HSBC. I sold half of the puts This alone propelled this strangle into the profit zone. The rest will be watched.
OK that's it for today - I need a beer now ;-)