Entry 8 Oct 22: Challenged Legs

By: nic

Options Trading Journal Entry 8 October 2022

This week was a great week to learn more about what to do when one of the legs in an iron condor is challenged.

All stocks went up the first two days of the week and came dangerously close to the short strikes in my call spreads.

VIX, meanwhile, went down to a low of 28.5 on Thursday.

On the last two days of this week, the market went down again and gave me the breath I needed for most of my positions.

As I said in my journal entry last week, navigating choppy waves in a high volatility environment also implies being on the watch-out for adjustments, like rolling to recenter positions and other opportunities to improve positions. That is what I did this week with one of my IWM iron condors. I will explain below.

Also, this month the next earning season starts. Since I have not added earning plays to my playbook yet, I will avoid opening positions for underlyings with earnings within 30 days from opening. So I am now mainly looking at ETFs.

Last week I selected EWZ, EEM, IWM, FCX, TQQQ, PLUG, CCL, and AMZN to play around with based on the IVR ranking I saw in Tastyworks. But I only opened one extra EWZ iron condor and rolled up the put leg of one of my IWM iron condors.

Note on TQQQ

I decided to drop TQQQ altogether. At this stage, it is too high-risk and best suited for short-term (one to a few days) investment periods, so not something for me. TQQQ is a leveraged ETF: for a relatively high fee, you can invest a small amount of money in a stock index and earn a much bigger return than you would get if you put the same amount of money into a regular, unleveraged ETF that tracked the same index. However, you can also lose much more than you would typically lose.

I am still far from optimal portfolio allocation (should be around 18 positions based on the risk I am willing to take and position size). Still, I will not force myself to open positions that do not conform to the rules I have imposed upon me.

I closed one position, and with the extra EWX opened, so I still have seven positions open.

I am now actively using all the rules and tools I have to select underlyings, construct trades, and use technical analysis to determine entry points for my options trades.

During the week, I followed the stocks (and other underlyings) in TradingView (technical analysis) and StockInvest.usTradingView (technical analysis), and StockInvest.us during the week. Every day I received Google Alerts, which I diligently studied.

And I tested them in Tastyworks, backtested them in Tastytrading’s Lookback backtesting app, and entered them during the week in the platform.

I am still working on my blog on entry rules (I will write about them in a future post or blog). Writing this journal is taking a lot of time. I will have to see how to do this more efficiently. I started anyway by rearranging stuff a little bit. I will now start with reviewing the last week, then market sentiment and then focus on what to do next week.

And as a last note: this week, I received what is considered the bible for options traders: Options as Strategic Investment, 5th ed. by Lawrence G. McMillan.

Options as a Strategic Investment

Over 1000 pages, and I am now at page 6. I will report back when I am a little bit further to tell you whether it is worthwhile the considerable amount I had to pay for it.

Challenged iron condor legs
Now really taking off!

Table of Contents

Last Week’s Options Trading

During the last week, some of the stock prices came close to the striking prices of the shorts in the call legs of my iron condors and my bear call vertical spread.

Especially my EEM bear call spread was challenged, and the short went slightly ITM for a few days but remained below the break-even.

EEM bear vertical call spread dangerously close to break-even of the iron condor call leg.

Towards the end of the week, all positions were back in the safe zone, with the stock price right in the middle of the iron condor shorts and a bit farther away from the short strike of the bear call vertical.

I also used the high volatility and fact that the call leg of my IWM 21 Oct iron condor was challenged to till the put leg more up to the stock price and earn some extra premium. I can add this now to the break-even.

Status Active Positions

EWZ Iron Condor 21 Oct 26/27/34/35 Opened Sep 15

The price of the ETF came close to the short strike of the put leg of my iron condor but backed pf again.

So I need to watch closely what happens next week, but I will probably decide to close it by Thursday (which is 8 DTE).

EWZ

EWZ seeks to track the investment results of the MSCI Brazil 25/50 Index. The fund generally invests at least 80% of its assets in the securities of its underlying index and depositary receipts representing securities in its underlying index. The index is a free float-adjusted market capitalization-weighted index with a capping methodology applied to issuer weights so that no single issuer exceeds 25% of the underlying index weight, and all issuers with a weight above 5% do not cumulatively exceed 50% of the underlying index weight. The fund is non-diversified.

FCX Iron Condor 24/25/35/36 Oct 21 Opened Sep 21

FCX is also in the green but not yet at 50% of profit, although it came close this week. With FCX, I need to be extra careful since, on 13 October, there will be dividends and earnings shortly after that, on 26 October. So ideally, I get out latest at the beginning of next week. Even at a lower profit.

FCX

Freeport-McMoRan Inc., a natural resource company, acquires, explores, and develops mineral assets, and oil and natural gas resources. The company explores copper, gold, molybdenum, cobalt hydroxide, silver, and other metals, as well as oil and gas. Freeport-McMoRan Inc. was founded in 1987 and is headquartered in Phoenix, Arizona.

AMZN Iron Condor 21 Oct 21 97/99/128/130 Opened Sep 26

Another high volatility higher premium play and until now very well behaving. Since this one will expire within 14 days, I will closely monitor it and decide whether I should close it this week.

EEM Bear Call Spread 21 Oct 36.6/38 Opened on Sep 27

My EEM bear call spread went ITM this week (assignment risk!) for a few days but remained under my break-even, and the technical indicators told me it wouldn’t move much higher, so I didn’t adjust or close the position.

Also, this position is in the green and needs to be closed this week since it is too close (.95 points) to the short strike of the spread.

However, although it improved, the max Expected Move (36.95) is still slightly above the break-even (36.88) of the short strike.

So I need to close watch this position and close it next week.

IWM Iron Condor 18 Nov 146/149/190/193 Opened on Sep 30

One week ago I opened a second higher volatility higher premium IWM play which is also in the green. Since this one expires 18 November, there is no need to closely monitor it, unless something big happens in the market. I have also put an automatic 50% take profit order on.

Positions Opened Last week

EWZ Iron Condor 18 Nov 25/27/37/39 Opened October 3

I opened second higher volatility, higher premium EWZ play which is also in the green. Since this one expires on 18 November, there is no need to monitor it unless something big happens in the market closely. I have also put an automatic 50% take profit order on.

Positions Rolled or Closed Last Week

EWZ Bull Put Spread 28 Oct (‘Weekly’) 27/28 Opened 15 Sep Closed on Oct 3

I closed this position after 18 days and 43 days before expiry, paying $12 after receiving a premium of $25, with a profit of $13, so I conform to my self-imposed 50% profit-taking rule.

That excludes commissions and fees, which makes the profit less, unfortunately (46%) or net $9.96 which comes close to what Lookback forecasted (see below). So I need to raise my profit target and/or raise the minimum premium I need per position.

I started this bull put credit spread with strikes at 18 (long) and 24 (short) deltas. Backtesting with Lookback gave me this information:

So I came out a little lower than this, but hey, all in the green, so a first and nice win since I started my formal options trading journey on 1 September!

Since it was closed based on a 50% profit close order I had given in, I cannot anymore track precisely what the stock price and option greeks were at closing. I cannot find this kind of historical data in the Tastyworks platform.

IWM Iron Condor 21 Oct Opened Sep 26, Put Leg 147 149 Rolled to 157 159 on Oct 7

As with all my other positions, this IWM iron condor was also under attack due to the stocks going up in the middle of the week. I, therefore, started preparing to adjust the position.

The rule I use is to roll out up or down, or in time, in the direction of the underlying, the untested/profitable spread for (more) credit (±50% of original Credit) when the short strike is ATM or already slightly ITM and the long strike is still OTM (also called ‘on the dance floor’ I believe).

In general, before expiration, there may be opportunities to close the position for a profit by exiting the whole position, exiting one spread, or buying back only the short options. The strategy will be profitable if the options are purchased for less money than sold.

So based on the expected move graph in Tastyworks, I rolled the put spread of this iron condor ten points up from 147/149 to 157/159, giving me an extra premium and pushing the break-evens further out.

I based the roll-up on the ‘Expected Move’ as indicated in the Tastyworks platform, the (extra) premium I would receive, and my expectation of the direction and trend of the underlying (which is slightly bearish).

Since this position will expire within 14 days, and the spread has been considerably narrowed, I will have to monitor it closely and decide whether I should close this week.

The option chain for this position

Lookback also confirms this has a high probability of profit, especially as I let it expire at DTE.

Options Strategies Count Summary

Since the IWM

Defined Risk

Week 1 October – 8 October

YTD

Bull Put Spread (credit)

0

0

Bear Call Spread (credit)

0

1

Bear Put Spread (debit)

0

0

Bull Call Spread (debit)

0

1

Short Iron Condor

1

6

Undefined Risk

Short Option

0

0

Short Straddle

0

0

Short Strangle

0

0

End-of-Week Active Positions Overview

To be set up

Market Sentiment 8 October 2022

Every week I start with a review of the market sentiment.

I mostly use eOption’s Closing Bell emails I receive daily as a source.

The week started good for equities, seeing significant gains on the first days of the week. However, a more robust than expected monthly jobs report means the Fed has another 75-bps interest rate hike. So on Thursday and Friday, there were big sell-offs 

“The Fed is trying to bring down inflation, and a tight labor market makes doing that extremely hard. Many jobs and few available workers create an environment where labor has the upper hand. As a result, workers can bargain for higher pay and more incentives.

While this is great in theory, especially given the current wealth gap in society, it creates upward inflation pressure. Companies’ input costs go up, so they raise the prices of the goods/services they sell. And on the demand side, higher wages for workers mean more demand, pushing up prices. 

That is the opposite of what the Fed is trying to do. Its policies are attempting to crush demand enough that unemployment increases and the prices of homes and other significant goods decrease.

So while the White House is happy about September nonfarm payrolls rising 263k and the unemployment rate falling to 3.5%, the Fed and the stock market are not. 

How does this all tie back to the stock market and today’s decline? Upward inflationary pressure means the Fed will have to keep tightening financial conditions aggressively until it sees meaningful progress. Higher interest rates put pressure on the stock market because the risk-free rate of return (or discount rate) used in every financial model goes up, reducing the value of most other assets.”

Source: Stocktwits Daily Rip 7 Oct 22

1. Geopolitical Events and Economic Trends

During the week, I capture the most important news. Every weekend before the new trading week, I review the current markets, the general geopolitical events, and economic trends determining the sentiment in the world of options trading.

  •  OPEC+ slashed oil production by two million barrels a day, double what many analysts expected and in opposition to the West’s requests. Prices of crude oil, gasoline, and heating oil have increased significantly over the last two weeks.
  • The UK PM and Chancellor had to reverse their ‘mini-budget,’ which eased investor panic, but the Brexit-related damage caused by the UK government is getting bigger day by day.
  • Russia is more and more losing ground in the four annexed Ukrainian regions, and on Friday, Putin’s ‘love baby’, the bridge to the Krim, was severely damaged; Zelensky now feels that also the Krim can be taken back.

2. VIX Index

  • The CBOE Volatility Index (^VIX) — Wall Street’s “fear gauge” — moves around 32 (the highest volatility of this year).
  • A VIX below 15% is very low volatility. A 15% or below VIX is assumed to be a market at rest. Since the intrinsic nature of the Stock Market is to move up, a VIX close to 15% or lower will tell us that the broader market is likely to head higher. 
  • Up to 19% VIX means the market is in ‘lull’ mode. 19% is seen as the ‘steady state’ VIX. This arena is inadequate for short premium plays, which require high volatility. This is where long calls, puts, and debit spreads may be set up. Only when VIX gets closer to 30%, selling options become viable.
  • At 20% or higher means medium volatility.
  • A VIX of 30% or higher means high volatility. When selling options, you want to sell out of stocks when the VIX is near 30. This is where credit spreads, short strangles, straddles, short iron condors, etc., can be played.
  • Above a VIX of 40%, this is still the case, but given the extreme volatility, you should be very careful.

VIX for position sizing

With a VIX of around 31, my maximum portfolio capital allocation is 40% of net liq.

VIX

< 15

15-19

20-29

30-40

>40

Volatility

Lowest volatility, all comfortable

Market in ‘lull’ mode

Volatility high

Volatility very high

Volatility and fear levels highest

Maximum portfolio capital allocation

25%

30%

35%

40%

50%

Volatility and the VIX are significant in how I size positions and portfolio allocation. Since my focus is on short premium trading, I must balance exposure to substantial losses and reaching sufficient occurrences.

In 2022 the VVIX Index (VIX Volatility Index) has also traded within a fairly reasonable range (roughly between 83 and 150). The long-term average is 97, and the VVIX is mean-reverting.

The VVIX is nicknamed the “VIX of VIX” because it is calculated using the implied volatility of ATM and OTM options in the VIX itself, using the same calculation method as VIX. The index measures the “volatility of volatility, or the “vol of vol.”

Today, the VVIX went down at the end of the week to 103.39 from around 106, which means it is moving back to the mean.

The VVIX/VIX Ratio

See more in this Tastyworks video.

3. Oil and Gas

The following sectors I look at – to understand the market sentiment – are, due to their massive impact on the global economy, metal & mining.

  • WTI crude rose $4.19 or 4.74% to settle at $92.64 per barrel after starting the week at $79.49, rising to a five-week high (up 16.5% on the week, a 5th straight day of gains and 2nd straight up week).
  • Oil prices went up after OPEC+’s decision this week to make its most significant supply cut since 2020 despite concern about a possible recession and rising interest rates.

4. Gold, Silver, and Copper (Metals & Mining)

To understand the market sentiment, I look at the following sectors: precious metals and mining due to their massive impact on the global economy.

  • Gold prices slip -$11.50 or 0.7% to settle at $1,709.30 an ounce, though prices for the most-active contract ending the week 2.2% higher as the dollar eased off 20-year highs the week prior.

5. Yield Curves

  • The yield on the benchmark U.S. 10-year Treasury note advanced after a solid report on the labor market was likely to keep the Federal Reserve on its path of aggressive interest rate hikes to combat inflation. Before paring gains, the 10-yr yield rose as much as 8 basis points above 3.9%. 

Understanding yield curves also adds to better reading the market sentiment.

This week treasury yields drop along with gold prices.

“A yield curve is a line that plots bonds’ yields (interest rates) having equal credit quality but differing maturity dates. The yield curve’s slope gives an idea of future interest rate changes and economic activity.

There are three main yield curve shapes: regular (upward-sloping curve), inverted (downward-sloping curve), and flat. Upward sloping (standard yield curves) is where longer-term bonds have higher yields than short-term ones. 

Standard curves point to economic expansion, and downward-sloping (inverted) curves point to economic recession.

Yield curve rates are published on the Treasury’s website each trading day.”

Source: Investopedia

i. The 10-Year Treasury Constant Maturity minus 3-Month Treasury Constant Maturity Yield Curve

The yield curve (T10Y3M) compares the 10-year with the 3-month U.S. Treasury bond yield. It gives insight into bank profitability, which is correlated with economic activity. Historically, the yield curve has been a reliable predictor of economic recessions.

An inverted yield curve has been a good indicator of an economic slowdown ahead. A 10-year-3-month treasury spread approaching 0 signifies a “flattening” yield curve. Furthermore, a negative 10-year-3-month spread has historically been viewed as a precursor or predictor of a recessionary period.

  • The 10-year-3-month treasury moved from 0.50 back to 0.44, but still far away from 0.
  • For some time now, the indicator has been predicting a recession.

ii. The 2-Year/10-Year Yield Curve

  •  The 2-year yield has now posted another 12-consecutive high yield close as per CNBC, rising above 4.31% today (15-year highs). 
  • The benchmark 10-yr yield hit another high above 3.89% earlier.
  • So the 2Y10Y Yield Curve is still inverted.

“An inverted yield curve can be an important economic indicator and a likely precursor to a recession. 

When the curve inverts, the longer-dated bond (I am using the 10-year) will offer a lower annual yield than a short-dated bond (I am using the 2-year). This means that investors have bid up the prices on longer-dated bonds to the point where they yield less than short-dated bonds.

An inverted yield curve results from investor concerns about the economy and the stock market. History shows that investors tend to be right about economic weakness on the horizon when the yield curve is inverted. Since WWII, every recession has been preceded by a yield curve inversion.

Recessions don’t start immediately after the yield curve inverts, however. The inversion tends to precede the recession by 6 to 18 months.”

Source: SeekingAlpha

6. Producer Price Index

The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.

Source: Bureau of Labor Statistics (BLS).

  • Still going down, which is a sign that inflation may be slowing

7. Consumer Price Index (CPI)

The measure that is most often used to measure inflation in terms of consumers is the consumer price index (CPI). Tens of thousands of items in several categories are tracked. The basket of products or services is considered each month, and economists and statisticians look for trends. If the CPI rises, prices could trend higher, with inflation on the rise.

  • However, consumer prices are still rising (although the steep slope is weakening slightly)

8. Consumer Sentiment Index

A low CSI index reflects the general (dis-)satisfaction with managing U.S. economic policies. A high satisfaction rating suggests approval of the current policy management and implies market stability. 

Source: Surveys of Consumers (umich.edu).

  • University of Michigan: Consumer sentiment confirmed the preliminary reading earlier this month and was essentially unchanged from the month prior, at less than one index point above August.

9. Put/Call Ratio

  • A Put/call Ratio of below .5 could mean the market is very bullish. Maybe too bullish. It could be an excellent time to sell stocks high.
  • Between 1.0 and 2.0, the Put/call Ratio indicates a bearish market.
  • A Put/call Ratio above 2.0 could mean it is very bearish. It could be an excellent time to consider buying low.
  • Moving sideways if the Put/call Ratio oscillates between 0.5 and 2.0.
  • The put/call ratio went steeply up to 1.039, which indicates slightly more people are selling than buying and that the market is bearish.

Warning: previous research conducted by tastytrade revealed that the Put/call Ratio is not a reliable trading indicator. Readers can check out this installment to review that research in greater detail this installment.

10. DJI, SPX, Russel 2000 Indices, and Main Market Sectors

In general, I look at the leading indices DJIA, SPX, and Russell 2000 (IWM) and the level of volatility or ‘market thrashing’ (excessive volatility with significant rising then near proportionate falling in markets’ values within a trading period): above 1% in any or all of them might indicate indecision in the market.

DJIA, SPX, IWM

  • The Dow Jones Industrial [-2.11%] set another new YTD-low
  • The S&P 500 [-2.8%], Nasdaq [-3.8%], and Russell 2000  [-2.11%] closed last trading week with more losses.

Major Stock Market Sectors

I also follow the major market sectors in Barchart.

  • Every sector was red, with technology (-4.10%) and consumer discretionary (-3.47%) lagging. 
  • S&P 500 Index at -2.80%
Main Sectors 2 Oct 2022
Main Sectors 9 Oct 2022

11. USD and Other Currencies

The DXY, the symbol for the US dollar index, tracks the price of the US dollar against a basket of six foreign currencies that have a significant trading relationship with the US and are also hard floating currencies. The index will rise if the dollar strengthens against these currencies and will fall if the dollar weakens against these currencies.

  • The U.S. dollar strengthened against major currencies on the data as well.

The DXY didn’t change much compared to last week (although it went down to 110 mid-week) for a short period and now stands at 112.74.

12. Bitcoin

Bitcoin went up to above 20000 this week and is at 19426 today.

Summary Market Sentiment 1 October 2022

Bull market

Bullish

Neutral/bearish

Bearish

Bear market/crash

1. Geopolitical events and economic trends

Positive trends, stable supply chains

Minor market issues, minor supply chain issues

National events, market issues, bad economic data, mini-corrections

Negative indicators, international events, serious market issues, broader market correction (-10%)

The total collapse of the global market, deep recession

2. VIX (VIX)

<15

Lowest volatility, all comfortable

15-19

Market in ‘lull’ mode

20-29

Volatility high

30-39

Volatility very high

>40

Volatility and fear levels highest

3. Oil & Gas (XOP)

Oil & gas

Minor market issues, minor supply chain issues

National events, market issues

International supply chain interruptions, high oil & gas prices

International conflicts involving US, Russia or China, and other main producing countries

4. Gold, Silver & Copper (GLD & SLV & Copper)

Gold, silver, and Copper stable

Minor market issues, minor supply chain issues

National events, market issues

International supply chain interruptions, high oil & gas prices

International conflicts involving US, Russia or China, and other main producing countries

5. US Yield Curve (T10Y3M and US10Y vs US02Y)

Considerably steep curve

Steep curve

Average but still positive curve

Flattening, inverting, and approaching zero

Inverted curve and negative

6. Producer Price Index (PPI)

Lowest price level

Price level higher than normal

Price levels rising fast

The price level is very high

Highest price level

7. Consumer Price Index (CPI)

Lowest price level

Price level higher than normal

Price levels rising fast

The price level is very high

Highest price level

8. Consumer Sentiment Index (CSI)

High consumer confidence

Consumer confidence is less high

Consumer confidence going down

Low consumer confidence

No consumer confidence

9. S&P 500 Put/call ratio (PCR)

Well below 0.5 (very bullish)

Close to 0.5 (bullish)

Between 0.5 and 1.0 (neutral)

Between 1.0 and 2.0 (bearish)

Above 2.0 (severely bearish)

10. Dow Jones (DJI)

S&P 500 (SPX)

Russel 2000 (RUT)

Major Market Sectors (XLE, XLF, etc)

Strong bull market
No real changes in an upward trend

Bullish market
Minor changes in an upward trend

Neutral bullish/bearish market

Increased (negative) changes and “thrashing”

Bearish market

Going down, many negative changes

Bear market

A deep recession or the market is collapsing, or already did so

11. US Dollar Currency Index (DXY)

Very weak dollar versus other currencies

Weak dollar

Neither weak/nor strong dollar

Strong dollar

Very strong dollar

12. Bitcoin (BTCUSD)

Bitcoin rising

Bitcoin rising slightly slower

Bitcoin “thrashing” at the same level

Crypto crashes, market corrections

Bitcoin collapses

No restrictions on trading (except for VIX rules)

Closer watch and reduce trades

More caution needed and reduce trades further

Extreme caution and reduce trades even further

Look to close any open positions and no new trades

This Week’s Economic Calendar

Earnings and Dividend Calendar

The next earnings season is coming up for my selected underlyings.

The first dividends are in December for GDX.

Financials

Cash Balance 8 October

Portfolio allocation

Not started yet

This Week’s Guidelines

Open Positions Status at Beginning Of the Coming Week

I have now opened seven positions in AMZN, EEM, EWZ (2x), FCX, and IWM (2x).

Goals and Schedule for this week

At the end of September, I didn’t reach my maximum portfolio allocation (40% of total portfolio buying power). Whereas I now should be profiting with my short premium strategies from the opportunities presented by the high volatility in the market.

Sunday: set up options strategy ideas and perform backtesting; select at least two options strategy ideas.

Tuesday: open a minimum of 2 vertical spreads or iron condors

Thursday: open a minimum of 2 vertical spreads or iron condors

I need high IVR underlyings and underlyings trading in ranges with apparent resistance and support areas.

Underlyings Selected for Trading This Week

This is my selection for this week. I am avoiding the earnings as much as possible, looking for high IVRs.

For this week, I will continue applying my underlying selection rules and focus on high volatility (IVR >40) and higher premium underlyings that have no significant events (like earnings < 30 days) coming up. In the list also the plays already in place, but if they have earnings or dividends coming up, I will not open new positions this week (AMZN, FCX).

I added NVDA, MU, PYPL, SLV and FXI to the list.

Options Buying Power and Portfolio Allocation This Week

Based on my current buying power and portfolio allocation rules, I determine whether I can open new positions to maximize such portfolio allocation.

Allocation based on VIX

VIX

< 15

15-19

20-29

30-40

>40

Volatility

Lowest volatility, all comfortable

Market in ‘lull’ mode

Volatility high

Volatility very high

Volatility and fear levels highest

Maximum portfolio capital allocation

25%

30%

35%

40%

50%

In allocating portfolio capital I need to use Buying Power

Cash Balance

$4.803

Buying Power

$3.653

Max Portfolio Capital Allocation (Cash Available for Trading)

40%

$1.461

Average Max Position Allocation (BP)

4%

$150

Portfolio allocation undefined vs defined risk

All my plays are ‘defined risk’. I need to add undefined risk positions at a later stage. I will explain why in my blog post on constructing trades.

This Week’s Rules

This week I will start a post with my entry, adjustment, and exit rules per the options strategy. I will describe how I set up a playbook with all the strategies I want to deploy.

Example Option Playbook Bull Put Vertical Spread

Option Positions in Play

Vertical Bull Put Credit Spread

14/09/22: Sold – EWZ 28 Oct BPS 27/28 @ 25.00

Vertical Bear Call Credit Spread

27/09/22: Sold – EEM 21 Oct BCcS 36.5/38 @38.00

Vertical Bull Call Debit Spread

To be filled in

Vertical Bear Put Debit Spread

To be filled in

Short Iron Condors

14/09/22: Sold – EWZ 21 Oct Short IC 26/27/34/35 @ 32.00

14/09/22: Sold – FCX 21 Oct Short IC 24/25/35/36 @ 26.00

26/09/22: Sold – IWM21 Oct Short IC147/149/180/182 @ 51.00

23/09/22: Sold – AMZN 21 Oct Short IC 97/99/128/130 @ 53.00

7 IWM Nov18 IC 146-149-190-193 @77

Short Straddles

To be filled in

Other Strategies

To be filled in

Conclusion

I’m going slow and am still busy trying to reach full portfolio allocation in October. I am only halfway. But the idea of trading based on high VIX levels only when all entry indicators are on green and holding back in rough and choppy times is part of the game to reach my goals.

Let’s see whether October will become more bullish again and allows me to open more positions.

Leave a Comment