Yesterday I closed the ODAX 11350 - 11400 Debit Put Spread, which was opened before Christmas in order to protect the former Call Spread deployed for January against a market rebound.
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| DAX 30 on February 6th 2019. Source Investing |
Showing posts with label odax. Show all posts
Showing posts with label odax. Show all posts
Wednesday, 6 February 2019
Closed: ODAX February 2019 Call Spread
Summary
Yesterday I closed the ODAX 11350 - 11400 Debit Put Spread, which was opened before Christmas in order to protect the former Call Spread deployed for January against a market rebound.
This trade worked fine in its original task and I was aiming to make more profit if the market kept rising. However, with only nine days left, I chose to close it near break even.
Yesterday I closed the ODAX 11350 - 11400 Debit Put Spread, which was opened before Christmas in order to protect the former Call Spread deployed for January against a market rebound.
Friday, 18 January 2019
Closed: ODAX January 2019 Call Spread
Summary
Today is January options expiration day and the 11400 - 11800 Call Spread expires yielding its maximum possible profit.
Nice comeback from last Christmas lows however, it comes too late to affect this trade negatively. Now it is time to evaluate the situation but probably I will wait for new drops in the index to open new trades.
Today is January options expiration day and the 11400 - 11800 Call Spread expires yielding its maximum possible profit.
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| DAX 30 on January 18th 2019. Source Investing |
Tuesday, 8 January 2019
Closed: ODAX January 2019 Put Spread
Summary
This morning I have closed the trade at around 93% of the maximum possible profit with still 10 days before the expiration date.
We are in a bearish setup, so it makes sense to me to eliminate some downside risk and wait for a new drop in order to deploy a new Put Spread using February options.
This morning I have closed the trade at around 93% of the maximum possible profit with still 10 days before the expiration date.
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| DAX 30 on January 8th 2019. Source Investing |
Monday, 17 December 2018
New Position: ODAX January 2019 Call Spread
Summary
Complementing the Put Spread opened last week, I have opened a 11.400 - 11.800 Call Spread for the January expiration cycle. This effectively transforms the trade into an Iron Condor.
Also, in order to add some upside protection, I have bought a 11.350 - 11.400 Call Spread using February options. Ideally I would like to reuse this Spread again in February.
Five trading weeks to go and an Implicit Volatility of around 21%. I should be able to hold longer before adjusting the trade given the fact that I have a debit Call Spread for February and the credit received from the Put Spread. The Put Spread, on the other hand, will be adjusted at 30 delta.
Complementing the Put Spread opened last week, I have opened a 11.400 - 11.800 Call Spread for the January expiration cycle. This effectively transforms the trade into an Iron Condor.
Also, in order to add some upside protection, I have bought a 11.350 - 11.400 Call Spread using February options. Ideally I would like to reuse this Spread again in February.
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| DAX 30 on December 17th 2018. Source Investing |
Five trading weeks to go and an Implicit Volatility of around 21%. I should be able to hold longer before adjusting the trade given the fact that I have a debit Call Spread for February and the credit received from the Put Spread. The Put Spread, on the other hand, will be adjusted at 30 delta.
Monday, 10 December 2018
New Position: ODAX January 2019 Put Spread
Summary
Opened a new 9900 - 9500 Put Spread using the January 2019 ODAX options. DAX is now at 10740 (that is -6% since last week!).
Six trading weeks to go and an Implicit Volatility of around 22%. I will adjust the trade if the short option reaches 30 delta. Also I will close the trade if there is a bounce upwards and I am able to get a 60/70% of the maximum premium quickly.
Opened a new 9900 - 9500 Put Spread using the January 2019 ODAX options. DAX is now at 10740 (that is -6% since last week!).
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| DAX 30 on December 12 2018. Source Investing |
Six trading weeks to go and an Implicit Volatility of around 22%. I will adjust the trade if the short option reaches 30 delta. Also I will close the trade if there is a bounce upwards and I am able to get a 60/70% of the maximum premium quickly.
Monday, 3 December 2018
Closed: ODAX December 2018 Put Spread
Summary
Today, I have closed the last trade involving 2018 options. With still three weeks remaining, taking 75% of the maximum premium is good enough for me.
In case there is a Volatility spike, I will be looking forward to January for deploying a new trade.
Today, I have closed the last trade involving 2018 options. With still three weeks remaining, taking 75% of the maximum premium is good enough for me.
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| DAX 30 on December 3rd 2018. Source Investing |
Sunday, 25 November 2018
New Position: ODAX December 2018 Put Spread
Summary
Last Friday, with the DAX 30 index at 11.160 points, I opened a 10.500 - 10.100 Put Spread for the December expiration cycle (28 days to go).
Four trading weeks to go and an Implicit Volatility of around 19%. I will adjust the trade if the short option reaches 30 delta.
Last Friday, with the DAX 30 index at 11.160 points, I opened a 10.500 - 10.100 Put Spread for the December expiration cycle (28 days to go).
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| DAX 30 on November 23rd 2018. Source Investing |
Tuesday, 6 November 2018
Closed: ODAX November 2018 Put Spread
Summary
Today, I have closed the second Put Spread involved in this month of November. Although the trade was guaranteed to be a loser and I had to reduce the losses as much as possible, I have decided to close it and not risk two additional weeks of exposure.
I might redeploy another Spread for December, if the conditions are good.
Today, I have closed the second Put Spread involved in this month of November. Although the trade was guaranteed to be a loser and I had to reduce the losses as much as possible, I have decided to close it and not risk two additional weeks of exposure.
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| DAX 30 on November 6th 2018. Source Investing |
Friday, 26 October 2018
Position Adjusted: ODAX November 2018 Put Spead
Summary
Well, it seems that the timing was bad again and the drop in the DAX has forced me to adjust the trade when the short option reached 30 delta.
I have redeployed the Spread to 10500 - 10100, however even if I get all the credit for this new spread, the trade will be a loser this month.
Well, it seems that the timing was bad again and the drop in the DAX has forced me to adjust the trade when the short option reached 30 delta.
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| DAX 30 on October 26th 2018 Source Investing |
Tuesday, 16 October 2018
New position: ODAX November 2018 Put Spread
Summary
After a nice drop from the level of the 12.400, and currently sitting in 11.650 points, I have decided to open a Put Spread for the November expiration cycle (31 days to go).
Five trading weeks to go and an Implicit Volatility of around 19%. I will adjust the trade if the short option reaches 30 delta.
After a nice drop from the level of the 12.400, and currently sitting in 11.650 points, I have decided to open a Put Spread for the November expiration cycle (31 days to go).
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| DAX 30 on October 16th 2018. Source Investing |
Five trading weeks to go and an Implicit Volatility of around 19%. I will adjust the trade if the short option reaches 30 delta.
Tuesday, 9 October 2018
Closed: ODAX Oct - Dec PUT Calendar Spread
Summary
The first real Calendar Spread has not worked out and I have closed it today at a loss. The drop in the DAX index has been too strong in order to be compensated with an increment in the Volatility and the time decay of the sold option.
Therefore, as it pretty much happened last year, I am back to square 0 with only three months remaining this year.
The first real Calendar Spread has not worked out and I have closed it today at a loss. The drop in the DAX index has been too strong in order to be compensated with an increment in the Volatility and the time decay of the sold option.
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| DAX 30 on October 9th 2018. Source Investing |
Therefore, as it pretty much happened last year, I am back to square 0 with only three months remaining this year.
Friday, 21 September 2018
New Position: ODAX Oct - Dec PUT Calendar Spread
Summary
As the DAX 30 is climbing again back to the mid 12.400s while the Implicit Volatility has dropped all the way from 18% to 13% since the beginning of the month, I have decided to open a October - December 12450 Put Calendar Spread.
If you remember, when Calendar Spreads were discussed, this trade involves selling a front-month option and buying another one at the same strike but further in the future.
The idea behind this trade, is to do it when Volatility drops and expect a return of the Volatility to its mean value. If that happens, the Option that we own far in the future will gain more value that the value lost by the Option being sold in the front month.
If by the end of the month, I have not achieved that increase in volatility, I will roll the short option into November in order to recover as much premium as possible, from the original debt paid.
As the DAX 30 is climbing again back to the mid 12.400s while the Implicit Volatility has dropped all the way from 18% to 13% since the beginning of the month, I have decided to open a October - December 12450 Put Calendar Spread.
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| DAX 30 on September 21st 2018. Source Investing |
The idea behind this trade, is to do it when Volatility drops and expect a return of the Volatility to its mean value. If that happens, the Option that we own far in the future will gain more value that the value lost by the Option being sold in the front month.
If by the end of the month, I have not achieved that increase in volatility, I will roll the short option into November in order to recover as much premium as possible, from the original debt paid.
Tuesday, 18 September 2018
Closed: ODAX October 2018 Put Spread
Summary
One day short of two weeks after having opened the trade, the contraction in the Implicit Volatility and a tiny climb in the DAX allowed me to close the Put Spread for about 60% of the maximum profit.
I´m happy that I closed this trade early too (September Option Expiration has not even arrived yet, four and a half weeks still to go for October OpEx) as being in the market during the shortest possible time reduces risks and allows entering new trades from better positions.
One day short of two weeks after having opened the trade, the contraction in the Implicit Volatility and a tiny climb in the DAX allowed me to close the Put Spread for about 60% of the maximum profit.
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| DAX 30 Index on September 18th 2018. Source Investing |
I´m happy that I closed this trade early too (September Option Expiration has not even arrived yet, four and a half weeks still to go for October OpEx) as being in the market during the shortest possible time reduces risks and allows entering new trades from better positions.
Wednesday, 5 September 2018
New position: ODAX October 2018 Put Spread
Summary
The DAX index is hitting again the lower 12.100 level so I decided to open a Put Spread for the October expiration cycle (44 days to go).
Six and a half trading weeks to go and an Implicit Volatility of 18%. My bet is that the support will hold and the market will rebound again. If things go wrong, I will adjust the trade when the short option reaches 30 delta.
The DAX index is hitting again the lower 12.100 level so I decided to open a Put Spread for the October expiration cycle (44 days to go).
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| DAX 30 on September 5th. Source Investing |
Six and a half trading weeks to go and an Implicit Volatility of 18%. My bet is that the support will hold and the market will rebound again. If things go wrong, I will adjust the trade when the short option reaches 30 delta.
Monday, 13 August 2018
New position: ODAX September 2018 Put Spread
Summary
This morning, with the DAX 30 hitting 12350, I opened a 11500/11100 Put Spread aiming for the September expiration cycle (39 days until expiration).
Six trading weeks to go and an Implicit Volatility of 19%. The DAX index has declined a bit during this month so my bet is for a slight rebound and a continuation of this sideways market for some weeks.
If things go wrong, I will adjust the trade when the short option reaches 30 delta.
This morning, with the DAX 30 hitting 12350, I opened a 11500/11100 Put Spread aiming for the September expiration cycle (39 days until expiration).
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| DAX 30 on August 13th 2018. Source Investing |
Six trading weeks to go and an Implicit Volatility of 19%. The DAX index has declined a bit during this month so my bet is for a slight rebound and a continuation of this sideways market for some weeks.
If things go wrong, I will adjust the trade when the short option reaches 30 delta.
Friday, 6 April 2018
Closed: ODAX May 2018 Put Spread
Summary
Yesterday was the unusual case when, right after opening a position, the market makes a sharp movement in my favor. So sharp that I was able to collect 60% of the maximum profit in just one day. Therefore, it did not make sense risking the exposure for one month and a half, only to get the 40% remaining.
Trade Status
All the trade details can be found here.
Portfolio
No open position in the portfolio right now. I might reopen the Put Spread if we test again the lows made last week.
See also
Yesterday was the unusual case when, right after opening a position, the market makes a sharp movement in my favor. So sharp that I was able to collect 60% of the maximum profit in just one day. Therefore, it did not make sense risking the exposure for one month and a half, only to get the 40% remaining.
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| DAX 30 on April 6th 2018. Source Investing |
After closing the spread, I booked a gain of 81€. With that, the current gain since the beginning of the year is 0,49%. DAX 30 index is down 4,9% in the same period of time.
All the trade details can be found here.
Portfolio
No open position in the portfolio right now. I might reopen the Put Spread if we test again the lows made last week.
See also
Wednesday, 4 April 2018
New position: ODAX May 2018 Put Spread
Summary
This morning, with the DAX 30 hitting 11800, I opened a 10700/10300 Put Spread aiming for the May expiration cycle (44 days until expiration).
It does not have much time value compared with other trades and the short delta was smaller than usual (closer to 10 than to the usual 16), but the German index has been breaking some supports and we might be entering a bear market. I did not go for a full Iron Condor as I fear the index tendency for bouncing upwards.
This morning, with the DAX 30 hitting 11800, I opened a 10700/10300 Put Spread aiming for the May expiration cycle (44 days until expiration).
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| DAX 30 on April 4th 2018. Source Investing |
Wednesday, 28 March 2018
Closed: ODAX April 2018 Iron Condor
Summary
Last Friday, I closed the remaining Put Spread at a small loss after seeing the DAX index breaking supports and making new year lows. As the time of this writing, five days later, I am still not sure whether that decision was precipitated.
Too bad I did not close the spread when I was winning 70% of the premium received. Anyway, I wanted to close the spread as I do not plan to pay attention to the stock market during this Easter week.
Last Friday, I closed the remaining Put Spread at a small loss after seeing the DAX index breaking supports and making new year lows. As the time of this writing, five days later, I am still not sure whether that decision was precipitated.
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| DAX 30 on March 28. Source Investing |
Friday, 16 March 2018
Closed: ODAX March 2018 Put Spread
Summary
Today expires at max profit the Put Spread I opened after rolling the failed February 12100-11700 Put Spread.
Given the very high IV when I opened it, and the sideways market since then, this was an easy ride and I chose to get all the premium for it. Moreover, this spread was only half the usual width, so the money at risk was half as well.
Today expires at max profit the Put Spread I opened after rolling the failed February 12100-11700 Put Spread.
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| DAX 30 on March 16th 2018. Source Investing |
Given the very high IV when I opened it, and the sideways market since then, this was an easy ride and I chose to get all the premium for it. Moreover, this spread was only half the usual width, so the money at risk was half as well.
ODAX April 2018 Iron Condor: Closed Call Spread
Summary
Last Wednesday, after almost 30 days, no movement in the DAX index and a nice volatility contraction, I was able to close the Call side of the Iron Condor locking around 77% of the premium initially received.
There were still more than 5 weeks to go, so I preferred to take the money from the table, giving the index tendency for rallying (although it is taking a more bearish profile lately).
Last Wednesday, after almost 30 days, no movement in the DAX index and a nice volatility contraction, I was able to close the Call side of the Iron Condor locking around 77% of the premium initially received.
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| DAX 30 on March 16th. Source Investing |
There were still more than 5 weeks to go, so I preferred to take the money from the table, giving the index tendency for rallying (although it is taking a more bearish profile lately).
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