Short /ES and "reducing basis": an illustration

The S&P futures market went straight up yesterday after the jobs report:

If you'll remember from my first post on this subject 10 days or so ago, I sold the futures contract at 2383.75. It gains or loses $50 per point, so at yesterday's close of 2399.25 it's lost 15.5 points: $775.

But! I've also sold two puts, the first for $362.50 (I closed it out for $5) and the other for $487.50. So that's $845 total, giving me a small profit even after this move against the position.

This latest put expires next Friday, at which point I will sell another on for another $300 or $400 ... following the market up if necessary (though I hope not!)

The charts:

Trade Date	Symbol	Result	Profit/Loss	Comment
02/06/2017	SPY	Lost	-18%
02/13/2017	SPY	Lost	-16%
02/21/2017	SPY	Won	+15.4%
02/27/2017	SPY	Won	+17%
03/06/2017	SPY	Won	+15.3%
03/13/2017	SPY	Won	+12.9%
03/20/2017	TLT	Lost	-1.4%	Dumb!
03/27/2017	SPY	Won	+9.6%
04/03/2017	SPY	Won	+6.6%	18 days long
04/10/2017	SPY	Open	+11.1%	only 14 days!
04/17/2017	SPY	Open
04/25/2017	SPY	Open
05/01/2071	SPY	Open

Trade Date	What	Qty	Credit Received	Net Liq Change
04/25/2017	/ES Put	-1	$362.50	$0
05/01/2017	/ES Put	-1	$487.50	+$70.00

More next week ...