Opening (IRA): SPY December 15th 403 Short Put
... for a 4.07 credit.
Comments: My weekly broad market short put in the shortest duration contract where the <16 delta is paying around 1% of the strike price in credit to emulate dollar cost averaging into the market without actually being in stock.
My basic options here are (a) do nothing, waiting for higher IV to sell premium; (b) continue to sell premium in shorter duration, but at strikes that are closer to at-the-money; (c) continue to sell premium in shorter duration, but at given delta strikes; or (d) scrounge around in the market for premium in other exchange-traded funds or single name that aren't so "weak sauce." I'm opting for (a) here, but may also scrounge around ... .
Examples:
Shorter Duration, But Closer to At-The-Money:
SPY September 1st (42 Days Until Expiry) 447.5 (38 delta), 4.48 credit (around 1% of strike price in credit).
Shorter Duration, But at a Given Delta:
SPY September 1st (42 Days Until Expiry) 436 (20 delta), 2.34 credit (around .54% of strike price in credit).
Comments: My weekly broad market short put in the shortest duration contract where the <16 delta is paying around 1% of the strike price in credit to emulate dollar cost averaging into the market without actually being in stock.
My basic options here are (a) do nothing, waiting for higher IV to sell premium; (b) continue to sell premium in shorter duration, but at strikes that are closer to at-the-money; (c) continue to sell premium in shorter duration, but at given delta strikes; or (d) scrounge around in the market for premium in other exchange-traded funds or single name that aren't so "weak sauce." I'm opting for (a) here, but may also scrounge around ... .
Examples:
Shorter Duration, But Closer to At-The-Money:
SPY September 1st (42 Days Until Expiry) 447.5 (38 delta), 4.48 credit (around 1% of strike price in credit).
Shorter Duration, But at a Given Delta:
SPY September 1st (42 Days Until Expiry) 436 (20 delta), 2.34 credit (around .54% of strike price in credit).
Trade closed: target reached:
Hit 50% max today; out for 2.03; 2.04 ($204) profit.