Sam
re: 'strategy has been affected by the turmoil in the markets?'
It really hasn't been affected. Last week, with all the turmoil and volatility, the SPX was relatively flat. The Aug to Sep profit for me was one of the best in years for that expiration cycle and by the time expiration rolled around, most positions I had on expired worthless. Was heavily short stangled in the indices, so its not for the faint of heart, but with the VIX pretty high was able to begin selling contracts a good length away from where the underlying was trading. Throughout the cycle added positions, and watched my deltas.
As an example, I had short XEO put contracts expired ranging from strikes 545 to 505, and short calls from 580 to 635.
Had SPY short put contracts ranging from 123 to 113, and calls from 126 to 135.
The market fluctuations allowed me to close, earlier than usual, other contracts at 5 cents or less.
I did get caught expiration morning with a few short call assignments on the DJX and XSP, because I turned into an ass and didn't cover OTM contracts on Thursday. After the markets had such a great day that Thursday, I didn't expect such a follow through on Friday, and settlement prices for these cash settled contracts was way high. Live and learn !!
This week, new expiration cycle began....same strategy, different day.
Next week, quarterly expiration. Have position on for that in SPY, IWM, XSP
cheers, |
