/ZNH6 short strangle
First trade of the year, volatility is up, markets are down. Going to keep things smaller this year, so I can modify everything freely, without worrying.
The details of this trade are as follows:
| Date | Inst. | Mark. | # | L/S | Strike | C/P | Price | Δ | Days | Max profit | Comm. | Event | P/L | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 1/4/2016 | /ZNH6 (march) |
126’140 | 1 | short | 123.5 | P | 0″08 | .11 | 46 | $250 | $3.07 | open | – |
| 1 | short | 129.5 | C | 0″08 | .11 | $3.07 | ||||||||
| 2 | 1/15/2016 | /ZNH6 (mar) |
128’180 | 1 | short | 131 | C | 0″09 | .16 | 35 | $218 | $3.07 | adjustment | – |
| 1 | long (close) | 129.5 | C | 0″35 | .35 | $3.07 | ||||||||
| 1 | short | 131 | C | 0″09 | .16 | $3.07 | – | |||||||
| 1 | short | 125.5 | P | 0″06 | .10 | $3.07 | ||||||||
| 1 | 2/4/2016 | /ZNH6 (march) |
130’020 | 1 | long (close) | 125.5 | P | 0″01 | .02 | 15 | $203 | $3.07 | adjustment | – |
Trade reasoning
Volatility is up due to some Chinese market selling. Taking advantage of this. Position size is super small, so even if things go against me, I will be able to modify the position without having to worry about the enlarged position size.
Adjustment #1 – 01/15/2016
Markets have been falling, and in the risk off environment, ZN has been increasing. I added to my position, while rolling my legs up, to keep a delta neutral state. Had to give back a bit of the max profits.
Adjustment #2 – 02/04/2016
Closed the 125.5 pot for a penny.
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