Friday, 27 October 2017

ODAX November 2017 Iron Condor adjustment (VI)


Today, I moved the put leg further up, trying to reduce the damage as much as possible. Now, the trade is mathematically a loser and the minimum loss matches the loss I should have taken when the call leg reached 30 delta. Something to learn for future trades.

DAX on October 27th. Source Investing
I will try to reduce the loss as much as possible, possibly rolling the put leg again if the climb continues. The loss in account terms ranges from 1,5% to 7,6%.

Thursday, 19 October 2017

ODAX Dec 2017 Bear Put Spread


Today, early in the morning, I bought a ODAX Dec 2017 12650-12600 Bear Put Spread. By definition, this trade is a debit spread, which means that I had to pay 51,5€ to open it while it has a limited maximum profit of 199,5. Those 51,5€ also represent the maximum loss and there is also a low probability of success (the market actually needs to go in my favor before December 17 to make a profit).

DAX on Oct 19 2017 Source Investing
The idea here is betting on a pullback risking little capital. Volatility is too low to open a Credit Put Spread while I already have too much upside expose with the infamous November Iron Condor.

Wednesday, 18 October 2017

ODAX November 2017 Iron Condor adjustment (V)


30 days remain until November option expiration day and I keep struggling with the Iron Condor deployed at 12800-13200 (about 250 point ITM - In the money). As I collected half of the credit deployed for the 12450-12000 Put Spread, I deployed a new one at 12800-12400.

DAX on October 18th 2017. Source investig
Break-even points are 12932 on the upside and 12668 on the downside. I will happily close the whole thing if we approach to the mid 12900s as time value is getting smaller and smaller. If not, I will try to reduce the max loss figure, which is a scenario more likely to happen day after day.

Tuesday, 10 October 2017

ODAX November 2017 Iron Condor adjustment (IV)


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.
DAX on October 10th. Source Investing
The November 2017 12800 Call sits at 63 delta and the 13200 Call sits at 25 delta. Accounting the credit collected, break-even point is at 12910.