Delta Neutral Trade $SPY #Trading #Profit #wealth #Money
As you can see, I had this trade lean towards the long side, as I am more confident we are going to go higher. The spread on that side is tighter. The delta in this trade is 4.44, so a bit more directionally biased then usual.
And yeah 56% statistical probability isn't necessarily much better than just longing, or shorting - but keep in mind where specifically this is resting on the distribution curve - exactly on the mean right now. Literally this is resting on the 20dma which is a great place the market finds support at.
Even if the bears are right, you can see in my chart that the 100dma is at the end of my profit zone. If I am wrong I anticipate we find support there and rally slightly where I can then dump my trade hopefully earlier in the week. But hey - from now till Monday morning I am just collecting premium - fantastic trade!!
Opened this trade up Friday, and already the proper parts of the trade are profitable - the sold to open parts.
I am using /ES Futures for this trade.
The trade consist of the following:
Buy 2950 Put
Sell 2970 Put
Sell 3030 Call
Buy 3035 Call
Theta is currently at 11.6, in this trade I have noticed it is a bit more choppy than usual
Same with the vega -21.17
Beta resting exactly 1
Capital requirement per strike is $1,000
Cost to put the trade on is only $187
Currently since opening Friday this has decayed so much it is advising I have already profited 51.3%! This is $96 profit per strike. We will see where we actually are when the market opens Sunday at 6pm.
And yeah 56% statistical probability isn't necessarily much better than just longing, or shorting - but keep in mind where specifically this is resting on the distribution curve - exactly on the mean right now. Literally this is resting on the 20dma which is a great place the market finds support at.
Even if the bears are right, you can see in my chart that the 100dma is at the end of my profit zone. If I am wrong I anticipate we find support there and rally slightly where I can then dump my trade hopefully earlier in the week. But hey - from now till Monday morning I am just collecting premium - fantastic trade!!
Opened this trade up Friday, and already the proper parts of the trade are profitable - the sold to open parts.
I am using /ES Futures for this trade.
The trade consist of the following:
Buy 2950 Put
Sell 2970 Put
Sell 3030 Call
Buy 3035 Call
Theta is currently at 11.6, in this trade I have noticed it is a bit more choppy than usual
Same with the vega -21.17
Beta resting exactly 1
Capital requirement per strike is $1,000
Cost to put the trade on is only $187
Currently since opening Friday this has decayed so much it is advising I have already profited 51.3%! This is $96 profit per strike. We will see where we actually are when the market opens Sunday at 6pm.
Trade active:
+22%
Comment:
Currently up 42%
Comment:
+62.7%
Comment:
Current Probability of profit is higher now at 77%
Comment:
+76.2%
Comment:
Currently down -15% now... :/
Comment:
+100% - doubled the trade cost today.
Trade closed: target reached:
Trade was held though exp - doubled my money.