The details of this trade are as follows:
| Date | Inst. | Mark. | # | L/S | Strike | C/P | Price | Δ | Days | Max profit | Comm. | Close | P/L | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 11/17/2015 | FXE (dec) |
104.36 | 1 | short | 101 | P | 0.50 | 0.21 | 31 | $91 | $1.50 | – | – |
| 1 | short | 108 | C | 0.41 | 0.19 | $1.50 | ||||||||
| 2 | 12/03/2015 | FXE (dec) |
107.35 | 1 | long | 108 | C | 0.94 | 0.21 | 15 | $27 | $1.50 | – | – |
| 1 | short | 110 | C | 0.30 | 0.19 | $1.50 |
The IV rank of FXE is high at 83% today, which makes for nice options premiums.
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I just opened my first ever short straddle position. Until now, I’ve been using short strangles. The straddle is similar, except that it uses the same ATM strike prices on both put-call legs.
The details of this trade are as follows:
| Date | Inst. | Mark. | # | L/S | Strike | C/P | Price | Δ | Days | Max profit | Comm. | Close | P/L | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 11/09/2015 | UNG (dec) |
9.66 | 1 | short | 10 | P | 0.83 | 0.54 | 39 | $134 | $1.50 | – | – |
| 1 | short | 10 | C | 0.52 | 0.46 | $1.50 |
After thinking a lot about my huge loss in NGZ5, I decided to alter my trading strategy a bit. In short, I will open more positions, which will be much smaller than the previous ones. I’ll write a separate post about this later.
Anyhow, UNG is an ETF which follows natural gas prices. Since gas is at a price extreme, as well as at high volatility, it makes since to open a straddle position.
Tasty trade has lots of research on short straddles and flying V’s, and they recommend profit taking at 25%. That is my goal with this trade.
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