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NaughtyPines
Mar 31, 2023 5:56 PM

Opening (IRA): QQQ May 12th 326 Covered Call (Long Delta Hedge) Long

Invesco QQQ Trust, Series 1NASDAQ

Description

... for a 311.89 debit.

Comments: Since I still have QQQ short delta hedge on and no long deltas on against, selling a May 12th 326 covered call here by buying a one lot and selling a 40 delta call against, giving me 60 long delta as a hedge against my QQQ long put diagonal.

I could also do this with a long call diagonal with similar delta metrics (i.e., buy a back month +90 call, sell a front month -30).

Trade active

Rolled the May 12th 326 to the 40 delta May 19th 320 for a 3.07 credit. Cost basis of 308.82.

Trade closed manually

Now that I've got a little more QQQ long delta on, taking this off. Closing for a 310.35 credit. 310.35 - 308.82 = 1.53 ($153) profit.
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