Stay or take money and Run?

Discussion in 'Trading' started by MACD, Aug 23, 2019.

  1. MACD

    MACD

    upload_2019-8-23_12-0-17.png
     
  2. MACD

    MACD

    This a trade I put on a few days ago. Short 1 ESU19 ( ES mini futures contract and 2 short Puts. Delta now is -1.39 -- Friday afternoon 12:00 Noon on August 23, 2019
     
  3. MACD

    MACD

    Closing entire trade: profit of $4300 on margin of $11,000
     
  4. MACD

    MACD

    Charts of ES 30,15 and 5 min:

    upload_2019-8-23_12-15-38.png
     
  5. MACD

    MACD

    Risk analysis indicates a take money and run. Agree?

    upload_2019-8-23_12-17-51.png
     
  6. MACD

    MACD

    upload_2019-8-23_12-21-9.png
     
  7. MACD

    MACD

    That clearly now (with the Price Slices shown on the graph) Says to me take the money and Run.
     
  8. MACD

    MACD

    upload_2019-8-23_12-30-0.png
     
  9. MACD

    MACD

    Alternative, except today is Friday, would be to cash in the future and hold the option 28 days to expiration collecting about $100 a day in Theta. Then on Sunday afternoon sell a future against the Puts
     
  10. tommcginnis

    tommcginnis

    Just working the original greeks, I would've jumped -- that $100 theta is matched to a $300+ dollar vega going the other way.

    But the reason I'm posting is that the risk graph you're showing seems awfully broad, and awfully *flat* -- and seems SO flat that it would be easy to justify staying in, instead of jumping. Not knowing the ins and outs of that platform (ToS?), it's kinda hard to say. Lots of cues to action, but a good portion conflict. :confused:
     
    #10     Aug 23, 2019
    ET180 and MACD like this.