Opening (IRA): QQQ Nov 18th 251/Jan 20th 300 Long Put Diagonal

... for a 38.21 per contract debit.

Comments: After taking profit on my previous long put diagonal in the Q's (See Post Below), re-erecting it immediately here, since I still need QQQ short delta. Selling the front expiry 30 delta and buying the back month 90 to delta hedge against a long delta portfolio. Going a little larger contract wise due to having some QQQ short puts that are basically right at the money ... .

38.21 cost basis on a 49 wide with a 261.79 break even with a take profit that is 50% of max (49.00 - 38.21)/2 + 38.21 = 43.60.

Trade active:

Rolling the Nov 18th 251 to the Nov 25th 260 for a 1.18 credit. Cost basis of 37.03 with a 262.97 break even on a 40 wide.

Trade active:

Rolled the Nov 25th 260 to the Dec 2nd 260 for a .64 credit. 36.39 cost basis with a 263.61 break even on a 40 wide.

Comment:

Pre-Thankgiving week roll: From the Dec 2nd to the Dec 9th 260 for a .57 credit. 35.82 cost basis with a 264.18 break even on a 40 wide.

Trade active:

Weakness ... . Rolling from the Dec 9th 260 to the Dec 16th 261 for an .86 credit. 34.96 cost basis with a 265.04 break even on a 39 wide. Trying to keep these around -60 delta/contract.

Trade active:

Rolling the Dec 16th 261 to the Dec 23rd 265 for a .69 credit. 34.27 cost basis with a 265.73 break even on a 35 wide.

Trade active:

Adjusting setup delta (and buying additional time) by rolling out the Jan 20th 360 to the Feb 17th 306 for a 6.32 debit. Trying to keep this around -60 delta/contract.

Cost basis now 40.59 with a 265.41 break even on a 41 wide.

Comment:

That should've been "rolling out the Jan 20th 300 to the Feb 17th 306."

Trade active:

Rolled the Dec 23rd 265 to the Dec 30th 265 for a .42 credit. Cost basis now 40.17 with a 265.83 break even on a 41 wide.

Trade active:

Rolled out the Dec 30th 265 on further weakness to the Jan 6th for a .93 credit. 39.24 cost basis with a 266.76 break even on a 41 wide.

Trade active:

Rolling out the Jan 6th 265 to the Jan 13th 265 for a 1.68 credit. Cost basis of 37.56 with a 268.44 break even on a 41 wide.

Trade active:

Rolling the Jan 13th 265 to the Jan 20th 265 for a .72 credit. 36.84 cost basis with a 269.16 break even on a 41 wide. The short leg is now monied, so will look to leave it alone so long as it stays that way.

Trade active:

Rolling the January 20th 265 to the January 27th 266 for a .97 credit. 35.87 cost basis with a 270.13 break even on a 40 wide.

Trade active:

Rolled the Jan 27th 266 to the Feb 3rd 266 on weakness for a 1.54 credit. 34.33 cost basis with a 271.67 break even on a 40 wide.

Trade active:

Rolled the Feb 3rd 266 to the Feb 10th 271 for a 1.23 credit. 33.10 cost basis with a 272.90 break even on a 35 wide.

Trade active:

Rolled the Feb 10th 271 to the Feb 17th 273 for an .89 credit. 32.21 cost basis with a 273.79 break even on a 33 wide. As with my IWM short delta hedge, will look to roll out the long aspect of this in the next week or so.

Trade active:

Rolled the Feb 17th 306 to the March 17th 336 90 delta (that's a big move) for a 21.80 debit and the 273 short put to the 302 for a 2.71 credit. Cost basis of 32.21 + 21.80 - 2.71 = 51.30 with a 284.70 break even on a 34 wide (i.e., I ended up selling a short put above my cost basis to reset to the back month -90, front month +30). This is basically okay, so long as you made money on the long delta end of things (i.e., stock, covered calls, short puts, etc.), but my preference is to not to lose money on hedges ... .

Trade closed manually:

Closed here for a 29.29 credit, resulting in a realized loss of 22.01. Will reset here shortly ... .