I have been in the sidelines during this month waiting for the rally to weaken and IV to increase, as I have had a couple of bad experiences selling Credit Call Spreads in that environment and selling Put Spreads seemed to be a bit suicidal too.
Now the correction is here, but it has arrived stronger that expected, both in Europe and USA, so I decided to go for a 12100 - 11700 Put Spread for February and not March.
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| DAX 30 on Feb 5th 2018. Source Investing |
Next week, we should have better visibility on the size of the correction and I might dare opening another Put Spread in March.
Trade details
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| Profit / Loss graph. Source Options Creator |
I will try to ride this trade until the expiration in two weeks, if things go wrong, adjustment (closing) point is 30 delta this time.
You can see all the trade details here.
See also
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