Another day in the life of a premium seller. I sold a strangle in XLI, with an IVR of 53.
I also defended my XME strangle by rolling up the puts.
First off, I sold an XLE strangle; the IVR had spiked up to 42, which isn’t bad considering the current market.
I also defended my SMH position by rolling up the put and taking in a whopping $96.
I sold a QQQ strangle, just to lay out more premium.
And finally, I defended my XLK position by rolling up the put. This position has been defended twice and has reached 50 days till expiration–both of which are triggers that indicate the trade will be closed as soon as it is a scratch or better. It is currently sitting at $-18.
Who says trading 150 DTE strangles means you don’t get to trade very often?
Again, the goal is to follow the trading plan and still create a lot of trade turnover. I closed my QQQ and XLE strangles for around 45% profit. I didn’t wait for a few more dollars to hit 50% since I want to keep some cash free for trading in case we get a volatility spike.
I closed XLI for about 20% profit because the position has been defended once. My guideline is 25% profit if a trade has been defended once (if it has been defended more than once, I go for scratch). Again, I’m a little loose if I’m trying to keep cash free and maintain trade turnover.
I also opened strangles in GLD, XRT, XHB, and OIH.