Good morning. I am looking to fade residual AAPL vol right at the open. I will try for the atm 121 irons. I'll post order tickets, if I get filled.
Trades 3-4: Ok. Here's what I brought back; 10-lot AAPL Jan31 310/325/340 121 iron fly from 7.65 risk (7.35 risk) 6-lot AAPL Jan31 315/325/340 352 iron fly from 6.82 risk (16.36 cr) (really a 3-lot) *prices in picture are not fill prices, I took screenshot right after
I am out of Trade 2, the SPX diagonal, at 1.00 debit. Which was my “conservative” fair value target. So... PnL = 1.00-(-.25)*20*100= +$2,500 *Edited to add order ticket
Adding the shares hedge was impulsive. I had closed the SPX diagonal, so was concerned I had nothing to offset. The AAPL trade(s) are just a bet on 325, cleaning any vol-scraps off the bone. Nevertheless, the journal is off to a good start.
Surprised you bet on pinning apple when there is FOMC tonight. I feel you could have waited till after the meeting.
Well, you would've thought wrong then. Straddle has been decaying consistently. In any case, regardless of what the Fed does, I doubt AAPL vols will trade anywhere near where they did at the open. Conversely, I still can close the trades prior to 2:00 est. So stay tuned, I guess...