“Closing time. Every new beginning comes from some other beginning’s end.”
I’m not sure why, but every time I close one of these trades that song runs through my head. At the time the 90’s music scene was turning from alternative and grunge to pop and boy bands, but it’s still a good song.
Market cooled off a little today and it was time to exit Trade 1. We’ve had a decent run up in the markets and I’ve had to make 2 separate adjustments to move the structure up and keep the greeks at the level I’m comfortable with. I still had negative delta, so I wanted to take the opportunity to close the trade on a small down day. Net of commissions, this trade produced a 3.4% gain in 20 days. Here is a final snapshot of the structure.
The vertical dashed line in the middle shows the market price of SPX at closing and the purple line above the 0 horizontal line represents profit. This was a very typical trade.
Time for a new trade. This is a 2525-2485-2415 BWB on the SPX with an expiration date in 57 days.
The VIX is at a one-month low today, so it will be interesting to see how this trade goes. I’ll aim for a 5% profit target, but will also exit if the market runs up or down too far and my greeks get out of whack.
Today is my last day until I’m officially on sabbatical. We’ll be heading to Spain and Portugal as we try to extend our summer weather for another month.