Disaster mode, with the Call leg almost halfway to the point of reaching max losses. Unlike I said on the last adjustment, I could not pay attention to the markets last Monday, so I did not close the position when it reached the "in the money" level, and now it sits 150 points in the money.
As there is still time-value in the options, I am going to bet a pullback to the 12800 level (the previous resistance) while I rolled the Put leg further up (from 12000-11600 to 12450-12000). If I am wrong, the price to pay will be jeopardizing all the profits made this year and a couple of hundred of Euros more.
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| DAX on October 10th. Source Investing |
Trade status
I locked 61€ while I collected 146,5€ more. As you can see, these adjustments reduce very little the maximum loss figure.
Theoretical max loss and profit are now:
Max loss (downside): 2500,0 - (71,0 + 198,5 + 73,5 + 61 + 146,5) = 1949,50€ (DAX < 12000)
Max loss (upside): 2000,0 - (71,0 + 198,5 + 73,5 + 61 + 146,5) = 1449,50€ (DAX > 13200)
Max profit: 71,0 + 198,5 + 61 + 73,5 + 146,5 = 550,50€ (DAX between 12450 and 12800)
Regarding the December expiration cycle, I am unsure what to do as I do not want to accumulate further up risk with another Call Credit Spread and volatility is quite low for a Put Credit Spread. Moreover, a pullback is due soon (hopefully!).
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