Swing trading with Butterflies

Discussion in 'Journals' started by Global OptionsTrades, Jul 30, 2021.

  1. A frustrating couple of days.

    Closing orders on the SPX position at 33 didn't fill after the spread moved to 31 early yesterday, then the index rose above my 'soft-stop' prior to opening so I closed the position at a loss. It turned around and the (now closed) position moved back into profit.

    Trade date: 25 January 2022
    Security: SPX
    Price at opening: 4317
    Direction: Put
    Expiry date: 28 January 2022
    Strikes: 4110 / 4185 / 4335
    Structure: 2 / 3 / 1
    Opening Spread: 26.90
    Close date: 27 January 2022
    Trade duration: 2
    Closing spread: 12.90
    Profit / (Loss): -14.00
    Profit / (Loss): -52.0%

    That loss was offset by a profitable RUT trade.

    Trade date: 25 January 2022
    Security: RUT
    Price at opening: 1981
    Direction: Put
    Expiry date: 28 January 2022
    Strikes: 1870 / 1905 / 1940
    Structure: 1 / 2 / 1
    Opening Spread: 2.20
    Close date: 27 January 2022
    Trade duration: 2
    Closing spread: 3.48
    Profit / (Loss): 1.28
    Profit / (Loss): 58.0%

    I got a good signal to short Nasdaq yesterday when spot was 14233. So entered an order for 13630/13830/14030 121 Put Fly at mid (12.75). Took a call and realised afterwards that I hadn't sent the order. Nasdaq fell during the session to close at 14003 :mad:
     
    #151     Jan 28, 2022
  2. Placed a short butterfly on S&P500 yesterday, expiring tomorrow. Most closing orders filled a couple of hours later yesterday.

    Trade date: 31 January 2022
    Security: SPX
    Price at opening: 4481
    Direction: Put
    Expiry date: 02 February 2022
    Strikes: 4380 / 4415 / 4450
    Structure: 1 / 2 / 1
    Opening Spread: 3.10
     
    #152     Feb 1, 2022
  3. I'll be filtering out more trades where my expected return is not sufficiently higher than my target return, which should result in fewer trades but higher profit.
     
    #153     Feb 1, 2022
  4. Two opening trades filled yesterday for expiry on Friday.

    Trade date: 01 February 2022
    Security: RUT
    Price at opening: 2044
    Direction: Put
    Expiry date: 04 February 2022
    Strikes: 1975 / 2000 / 2050
    Structure: 2 / 3 / 1
    Opening Spread: 7.70

    Trade date: 01 February 2022
    Security: NFLX
    Price at opening: 441
    Direction: Put
    Expiry date: 04 February 2022
    Strikes: 415 / 425 / 430
    Structure: 1 / 3 / 2
    Opening Spread: 0.49

    Some RUT closing orders filled just before the end of the session yesterday.
     
    #154     Feb 2, 2022
  5. A busy day yesterday.

    From #152, the remaining closing orders didn't fill on this, but a sufficient quantity of less ambitious orders filled, that I escaped without significant loss. Reconfiguring in this way should reduce instances of total loss.

    Trade date: 31 January 2022
    Security: SPX
    Price at opening: 441
    Direction: Put
    Expiry date: 02 February 2022
    Strikes: 4380 / 4415 / 4450
    Structure: 1 / 2 / 1
    Opening Spread: 3.10
    Close date: 02 February 2022
    Trade duration: 2
    Closing spread: 3.08
    Profit / (Loss): -0.02
    Profit / (Loss): -0.5%

    From #154 both positions with 3DTE closed in profit after 1 day.

    Trade date: 01 February 2022
    Security: RUT
    Price at opening: 441
    Direction: Put
    Expiry date: 04 February 2022
    Strikes: 1975 / 2000 / 2050
    Structure: 2 / 3 / 1
    Opening Spread: 7.70
    Close date: 02 February 2022
    Trade duration: 1
    Closing spread: 9.93
    Profit / (Loss): 2.23
    Profit / (Loss): 29.0%

    Trade date: 01 February 2022
    Security: NFLX
    Price at opening: 441
    Direction: Put
    Expiry date: 04 February 2022
    Strikes: 415 / 425 / 430
    Structure: 1 / 3 / 2
    Opening Spread: 0.49
    Close date: 02 February 2022
    Trade duration: 1
    Closing spread: 0.70
    Profit / (Loss): 0.21
    Profit / (Loss): 43.2%

    Commission dragged net p&l down noticeably on this one.

    Opened a couple of positions yesterday for expiry on Friday. The S&P500 partially closed and the Nasdaq trade closed fully the same day in profit.

    Trade date: 02 February 2022
    Security: SPX
    Price at opening: 4557
    Direction: Put
    Expiry date: 04 February 2022
    Strikes: 4475 / 4505 / 4565
    Structure: 2 / 3 / 1
    Opening Spread: 9.10
    Close date: 04 February 2022

    Trade date: 02 February 2022
    Security: NQ
    Price at opening: 15061
    Direction: Put
    Expiry date: 04 February 2022
    Strikes: 14660 / 14810 / 15110
    Structure: 2 / 3 / 1
    Opening Spread: 49.25
    Close date: 02 February 2022
    Trade duration: 0
    Closing spread: 59.50
    Profit / (Loss): 10.25
    Profit / (Loss): 20.8%
     
    Last edited: Feb 3, 2022
    #155     Feb 3, 2022
  6. As markets dropped yesterday the S&P500 Put fly opened on Wednesday closed in profit.

    Trade date: 02 February 2022
    Security: SPX
    Price at opening: 4557
    Direction: Put
    Expiry date: 04 February 2022
    Strikes: 4475 / 4505 / 4565
    Structure: 2 / 3 / 1
    Opening Spread: 9.10
    Close date: 03 February 2022
    Trade duration: 1
    Closing spread: 11.80
    Profit / (Loss): 2.70
    Profit / (Loss): 29.7%

    No more open positions in this account and a good week.
     
    #156     Feb 4, 2022
  7. Bought a Put Fly on S&P500 yesterday, which closed near the end of the session in profit.

    Trade date: 07 February 2022
    Security: SPX
    Price at opening: 4504
    Direction: Put
    Expiry date: 09 February 2022
    Strikes: 4420 / 4450 / 4510
    Structure: 2 / 3 / 1
    Opening Spread: 9.70
    Close date: 07 February 2022
    Trade duration: 0
    Closing spread: 11.20
    Profit / (Loss): 1.50
    Profit / (Loss): 15.5%
     
    #157     Feb 8, 2022
  8. Another Put Fly for SPX for Friday expiry.

    Trade date: 09 February 2022
    Security: SPX
    Price at opening: 4573
    Direction: Put
    Expiry date: 11 February 2022
    Strikes: 4490 / 4520 / 4580
    Structure: 2 / 3 / 1
    Opening Spread: 10.30
     
    #158     Feb 9, 2022
  9. Closing orders filled on the dip at opening yesterday in profit.

    Trade date: 09 February 2022
    Security: SPX
    Price at opening: 4573
    Direction: Put
    Expiry date: 11 February 2022
    Strikes: 4490 / 4520 / 4580
    Structure: 2 / 3 / 1
    Opening Spread: 10.30
    Close date: 10 February 2022
    Trade duration: 1
    Closing spread: 12.70
    Profit / (Loss): 2.40
    Profit / (Loss): 23.3%

    Some calendar puts closed in profit too, so a good week.
     
    #159     Feb 11, 2022
  10. A summary of the the last 50 trades (most of which are on here):

    Win rate was 80.4%.
    Average profit was 28.3%.
    Average loss was 69.1%.
    Net / aggregate profit was 9.2%.
    Average duration was 0.9 days
    Sharpe was 25.6%
    Annualised return - at portfolio level - is 284%
    The last 10 trades have all produced positive return. The only loss in the last twelve trades was 0.5%.

    upload_2022-2-11_9-28-24.png

    Wondering what to do with this and would welcome any thoughts.
     
    #160     Feb 11, 2022