OPENING (IRA): SPY SEPTEMBER 4TH 295 SHORT PUT
... for a 3.45 credit.
Notes: Sold the strike nearest the 16 delta. Meant to do this earlier in the week, but probably got distracted by a few earnings plays. Cost basis of 291.55 if assigned. Basically, looking to do this programmatically every week in the expiry nearest 45 days 'til expiry and then run it to expiry, at which time these will either (a) expire worthless; or (b) they'll be in the money, and I'll be assigned shares, at which point I'll proceed to cover with a short call at the strike nearest my cost basis (i.e., in this case, the 292).
Notes: Sold the strike nearest the 16 delta. Meant to do this earlier in the week, but probably got distracted by a few earnings plays. Cost basis of 291.55 if assigned. Basically, looking to do this programmatically every week in the expiry nearest 45 days 'til expiry and then run it to expiry, at which time these will either (a) expire worthless; or (b) they'll be in the money, and I'll be assigned shares, at which point I'll proceed to cover with a short call at the strike nearest my cost basis (i.e., in this case, the 292).
Comment:
As a possible alternative play with a way smaller buying power metric: SPX September 4th 2860/2910 short put vertical, 5.50 credit, 44.50 ($4450) max loss/buying power effect; 12.4% ROC at max; 6.2% ROC at 50% max. Naturally, a little bit different to manage from a trading standpoint.
Trade closed manually:
Out here for .31; in for 3.45, out for .31; 3.14 ($314) net profit/contract.