/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.

znh6-chart

znh6-iv

znh6-options-chain

znh6-risk

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.

znh6-mod-chart znh6-mod-option-chain znh6-mod-risk

 

Adjustment #2 – 02/04/2016

Closed the 125.5 pot for a penny.

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