Sunday, February 10, 2019

2nd week earnings: the .16 delta doesn't cut it (at least for defined risk trades)

I traded mostly .16 delta iron condors this past week, with two exceptions:
TWTR (Twitter), where I sold a .16 delta strangle (for $80, netting $40 since I closed it at 50% of net credit received) ... and:

Snapchat (SNAP), where I sold two 6 strike puts (the stock was at $6.70 or so) for $15 each, netting $30 ... which I got almost all of since the price collapsed to $1 at the opening the next a.m.

But the two big (100% of the amount at risk) losers were Chipotle (CMG) and Motorola Solutions (MSI) ... both zoomed up after earnings.

Overall I lost a little money this week, like 2% on one of the $19K accounts I'm trading.

So this week I'm going to go out wider, probably the .08 delta ... the problem with this is that it won't pay enough to be worth the risk for a defined-risk trade. I can do undefined risk trades in my own account, but so far I don't have permission to do them in others.

Also, the Fabulous NDX trade is available again on Thursday in place of any earnings trades ...






Fingers crossed ... more next week!

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