Swing trading with Butterflies

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

  1. Closed flies yesterday at a loss after both securities rose stongly following earnings for the tech giants.

    Trade date: 31 January 2023
    Security: NQ
    Price at opening: 12,060.8
    Implied Vol: 42.2%
    Direction: PUT
    Expiry date: 03 February 2023
    Strikes: 11700 / 12050 / 12400
    Structure: 1 / 2 / 1
    Opening Spread: 91.00
    Close date: 02 February 2023
    Trade duration: 2
    Closing spread: 31.0
    Profit / (Loss): (60.0)
    Profit / (Loss): -65.9%

    Trade date: 01 February 2023
    Security: RUT
    Price at opening: 1,921.9
    Implied Vol: 41.0%
    Direction: PUT
    Expiry date: 03 February 2023
    Strikes: 1870 / 1920 / 1970
    Structure: 1 / 2 / 1
    Opening Spread: 14.10
    Close date: 02 February 2023
    Trade duration: 0
    Closing spread: 7.0
    Profit / (Loss): (7.1)
    Profit / (Loss): -50.4%
     
    #351     Feb 3, 2023
  2. Opened a directional position on Nasdaq yesterday anticipating that it may fall over the next few days, or not rise significantly.

    Then watched it rise 250 points during the rest of the session!

    Trade date: 07 February 2023
    Security: NQ
    Price at opening: 12,545.00
    Structure: OtM Call Credit Spread
    Expiry date: 13 February 2023
    Strikes: 12800 / 12900
    Opening Spread: 23.00
     
    #352     Feb 8, 2023
    destriero likes this.
  3. Opened a directional credit spread on oil earlier today.

    Trade date: 09 February 2023
    Security: CL
    Price at opening: 77.65
    Structure: OtM Put Credit Spread
    Expiry date: 15 February 2023
    Strikes: 74 / 75
    Opening Spread: 0.22
     
    #353     Feb 9, 2023
  4. Closing orders on the Nasdaq trade (#352) filled earlier.

    Trade date: 07 February 2023
    Security: NQ
    Price at opening: 12,545.00
    Structure: OtM Call Credit Spread
    Expiry date: 13 February 2023
    Strikes: 12800 / 12900
    Opening Spread: 23.00
    Close date: 09 February 2023
    Trade duration: 2
    Closing spread: 11.25
    Profit / (Loss): 11.75
    Profit / (Loss): 15.3%
     
    #354     Feb 9, 2023
  5. Closing orders for the oil trade (#353) that I opened yesterday, closed this morning in profit.

    Trade date: 09 February 2023
    Security: CL
    Price at opening: 77.65
    Structure: OtM Put Credit Spread
    Expiry date: 15 February 2023
    Strikes: 74 / 75
    Opening Spread: 0.22
    Close date: 10 February 2023
    Trade duration: 1
    Closing spread: 0.11
    Profit / (Loss): 0.11
    Profit / (Loss): 14.1%
     
    #355     Feb 10, 2023
  6. Opened a Nasdaq fly earlier today.

    Trade date: 14 February 2023
    Security: NQ
    Price at opening: 12508
    Direction: Put
    Expiry date (short side): 17 February 2023
    Implied Vol (short side) 27.5%
    Expiry date (long side): 21 February 2023
    Implied Vol (long side) 22.9%
    Strikes: 12500
    Opening Spread: 22.42
     
    #356     Feb 14, 2023
  7. Outside my normal stuff over a few days duration, I've been experimenting for a couple of months with a 'compressed' intraday strategy using ODTE options on the major indices, which is doing very well.

    The equity curve for the first 100 trades looks good, but I took a beating last week and spent time understanding why, so should avoid those drawdowns in future.

    upload_2023-2-14_18-21-11.png

    I'm going to run this in parallel with the vertical spreads with 3-7DTE, and 5/7 DTE Calendars, but won't try to report 0DTE trades in this journal, because it will get complicated, and there is arguably less value in doing so than for the longer term stuff.
     
    #357     Feb 14, 2023
    cesfx, jtrader33 and destriero like this.
  8. Opened long directional positions for expiry next week on S&P500 and Nasdaq, and a short position on oil, each favouring credit spreads.

    Trade date: 16 February 2023
    Security: ES
    Price at opening: 4,116.00
    Structure: AtM/OtM Put Credit Spread
    Expiry date: 21 February 2023
    Strikes: 4055 / 4115
    Opening Spread: 18.00

    Trade date: 16 February 2023
    Security: NQ
    Price at opening: 12,622.00
    Structure: OtM Put Credit Spread
    Expiry date: 22 February 2023
    Strikes: 12300 / 12350
    Opening Spread: 9.50

    Trade date: 16 February 2023
    Security: CL
    Price at opening: 78.90
    Structure: OtM Call Credit Spread
    Expiry date: 24 February 2023
    Strikes: 81.5 / 82.25
    Opening Spread: 0.16
     
    #358     Feb 17, 2023
    ffs1001 likes this.
  9. The Nasdaq Calendar (#356 - not a fly, as I said by mistake) closed comfortably in profit yesterday, after Nasdaq returned to c.12500.

    Trade date: 14 February 2023
    Security: NQ
    Price at opening: 12508.4
    Direction: Put
    Expiry date (short side): 17 February 2023
    Implied Vol (short side) 27.5%
    Expiry date (long side): 21 February 2023
    Implied Vol (long side) 22.9%
    Strikes: 12500
    Opening Spread: 22.42
    Close date: 16 February 2023
    Trade duration: 2
    Closing spread: 34.92
    Profit / (Loss): 12.50
    Profit / (Loss): 55.8%
     
    #359     Feb 17, 2023
  10. My model produced Short signals for ES and Nasdaq, so I closed the long positions (#358) at a loss.

    Trade date: 16 February 2023
    Security: ES
    Price at opening: 4,116.00
    Structure: AtM/OtM Put Credit Spread
    Expiry date: 21 February 2023
    Strikes: 4055 / 4115
    Opening Spread: 18.00
    Close date: 17 February 2023
    Trade duration: 1
    Closing spread: 35.00
    Profit / (Loss): -17.00
    Profit / (Loss): -40.5%

    Trade date: 16 February 2023
    Security: NQ
    Price at opening: 12,622.00
    Structure: OtM Put Credit Spread
    Expiry date: 22 February 2023
    Strikes: 12300 / 12350
    Opening Spread: 9.50
    Close date: 17 February 2023
    Trade duration: 1
    Closing spread: 22.63
    Profit / (Loss): -13.13
    Profit / (Loss): -32.4%

    Both indices are down c.1% now so it feels unwise to open short directional positions.

    However, the oil position closed in profit overnight.

    Trade date: 16 February 2023
    Security: CL
    Price at opening: 78.90
    Structure: OtM Call Credit Spread
    Expiry date: 24 February 2023
    Strikes: 81.5 / 82.25
    Opening Spread: 0.16
    Close date: 17 February 2023
    Trade duration: 1
    Closing spread: 0.07
    Profit / (Loss): 0.09
    Profit / (Loss): 14.6%
     
    #360     Feb 17, 2023