• TheStrangle

What a difference a day makes

One day you complain, next day you are happy. Today is one of the most turbulent days on the market within the past 12 months. We use the high volatility to close 4 strangles.

Just a quick note (more info later). The volatility is super high today and this creates high premium for option prices. This gives us a chance to unload strangles for a good price. Another reason for the unloading is the expiration in July. Over time, we have developed a taste for long-running options. So we are closing where it makes sense and will take the liquidity to invest in longer running strangeles. But first of all the dust has to settle.

We closed today strangles on:

  • SPY - with a profit of 10 % / the position was justopened on February 14th but it was a bad decision, as our calculations showed that we normally will never get in a profitable territory. So today is our lucky day because the high premium allow us to sell with a profit.

  • TWOU - this position was opened in January and was already in green territory but today we can close the whole strangle for a profit of 50%.

  • WORK - also just opened recently in January but sitting in out portfolio with a hefty profit of 62%. We guess we will reopen a position in WORK soon.

  • HPQ - this strangle wasn't looking too good and today we escaped a loss and closedit for a zero sum game.

In that sense - Strangle ahead !

PS: Before you start asking -> No the picture does NOT show me or someone else from our team ;-)

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