Opening (Margin): IWM April 6th/June 16th Double Die

... for a 57.79 debit.

Comments: Doing something a little funky here -- a double diagonal.

The best way to look at this setup is by breaking it down into two aspects: (a) a long call diagonal, with the back month at the +90 delta strike, the front at the -30; and (b) a long put diagonal, with the back month at the -90 delta strike, the front at the -30.

I tend to manage each aspect separately, taking profit on the winning side, while simultaneously looking to reduce cost basis on the losing one, so it's important to know where my break evens are for a given side.

Long call diagonal aspect:

39.42 cost basis, 169.42 break even, 44 wide.

Long put diagonal aspect:

18.37 cost basis, 170.63 break even, 25 wide.

Trade active:

Closed the call side for a 40.50 credit. 40.50 - 39.42 = 1.08 ($108) of quickee dirtee profit on the call side. Resetting via the April 14th 177/June 16th 130 long call diagonal for a 40.94 debit. Cost basis of 40.94, 170.94 break even, 47 wide.

Global cost basis (i.e., for the whole kit and caboodle): 39.42 + 18.37 - 40.50 + 40.94 = 58.23. (This can be important if you're looking to close the entire setup as a unit).

Trade active:

Rolled the April 6th 164 short put to the April 14th 168 short put for a 1.46 credit. Long put diagonal aspect cost basis: 16.91 with a 172.02 break even on a 21 wide. Global cost basis: 56.77.

Trade active:

Closed the 130/177 long call diagonal for a 44.55 credit; 44.55 - 40.94 = 3.61 ($361) profit. Re-established via the June 16th 140/April 21st 181 long call diagonal for a 36.36 debit. 36.36 cost basis with a 176.36 break even on a 41 wide.

Rolled the April 14th 168P up the the April 28th 170P for a 1.23 credit. Long put diagonal cost basis now 15.68 with a 173.32 break even on a 19 wide.

Comment:

Global cost basis: 56.77 - 44.55 + 36.36 - 1.23 = 47.35, btw.

Trade active:

Closed the June 140/April 21st 181 for a 38.02 credit; 1.66 ($166) realized gain. Re-establishing via the June 142/April 28th 185 for a 37.10 debit. 37.10 cost basis with a 179.10 break even on a 43 wide.

Global Cost Basis: 46.43 versus position marking at 47.55, so I'm net up 1.10 ($110) on the position so far.

Trade active:

Rolled the April 28th 170P to the May 173P (30 delta strike at or below my cost basis) for a 1.47 credit. Long put diagonal cost basis: 14.21 with a 174.79 break even on a 16 wide.

Global: 44.96.

Trade active:

And now, the call side feeling some heat ... . Rolled the >50% max April 28th 185C down and out to the May 5th 181C (30 delta) for a 1.38 credit. Long call diagonal cost basis 35.72 with a 177.72 break even on a 39 wide.

Global cost basis: 43.58.

Trade active:

Rolling out the May 5th 181 short call to the May 12th 181 short call for a .51 credit. Long call diagonal cost basis: 35.21 with a 177.21 break even on a 39 wide.

Global cost basis: 43.07.

Trade closed manually:

Closed for a 44.89 credit. Total profit of 44.89 minus my cost basis of 43.07 or 1.82 ( 182 ).