Opening (IRA): QQQ March 31st 220 Short Put
... for a 2.42 credit.
Comments: Adding rungs to my QQQ where I can, targeting the <16 delta strike paying around 1% of the strike price in credit. There is no April yet, so going with the quarterly.
Ordinarily, I would go with the shortest duration contract of around 45 days' duration, but that would be the January 27th, where the <16 delta strike at the 250 is paying 2.33 (i.e., <1% of the strike price in credit). Similarly, the SPY January 27th 360 (currently 15.6 delta) is paying 3.15; the IWM January 27th 160 (currently 14.1 delta) is paying 1.43. Consequently, I'm going with longer duration for the moment, although there's nothing to prevent one from selling higher, more aggressive shorter duration delta to get paid.
Comments: Adding rungs to my QQQ where I can, targeting the <16 delta strike paying around 1% of the strike price in credit. There is no April yet, so going with the quarterly.
Ordinarily, I would go with the shortest duration contract of around 45 days' duration, but that would be the January 27th, where the <16 delta strike at the 250 is paying 2.33 (i.e., <1% of the strike price in credit). Similarly, the SPY January 27th 360 (currently 15.6 delta) is paying 3.15; the IWM January 27th 160 (currently 14.1 delta) is paying 1.43. Consequently, I'm going with longer duration for the moment, although there's nothing to prevent one from selling higher, more aggressive shorter duration delta to get paid.
Trade closed manually:
Out today for >50% max with this vol crush. Opened for a 2.42 credit; closed for a 1.01 debit. 1.31 ($131) profit.