/GC BWB, /CL & /ZB Short Strangles, /6E remaining call vertical, /ZS IC closing trades, New /CL, /ZB Short Strangles

/GC Opening trade setup

Closed the trade on Mar 23.
Loss (after commissions) = $329.68


/CL Open trade setup

Closed the trade on Mar 23.
Profit (after commissions) = $195.16


/ZB Opening trade setup

Closed the trade on Mar 31.
Profit (after commissions) = $319.20


/6E Partially closed trade setup

Closed the remaining trade on April 2
Profit (after commissions) = $67.28


/ZS Opening Trade setup

All legs expired worthless on March 27
Profit (after commissions) = $153.82


Opened Short Strangle in /CL on Mar 16. Opened Short Strangle in /ZB on Mar 19

SOLD -1 STRANGLE /CLM5 1/1000 JUN 15 /LOM5 62/30.5 CALL/PUT @.35
SOLD -2 STRANGLE /ZBM5 1/1000 JUN 15/JUN 15 /OZBM5 178/151 CALL/PUT @0”21


YTD P&L

Advertisements

/GC (Gold Futures) Broken Wing Butterfly: 1/6/2015 & /CL (Light Sweet Crude Oil Futures) Iron Condor: 2/2/2015 Closing Trades + New /CL (Light Sweet Crude Oil Futures) Short Strangle: 2/24/2015

/GC Opening setup/trade & adjustment (Jan 6, 2015)

/GC was trading right around the max profit level of 1200.  However, I did not want any ITM legs to get exercised and be assigned the associated short or long futures position.  As such I sold the remaining regular butterfly (1210/1200/1190).
SOLD -1 BUTTERFLY /GCJ5 1/100 MAR 15 /OGH5 1210/1200/1190 PUT @3.00
Order

Profit = $140 (credit collected from opening trade) – $30 (debit for buying back the embedded short put vertical) + $300 (credit collect from closing out the remaining butterfly) = $410
Total commissions (opening & closing) = $37.10
Profit incl. commissions = 410  – 37.10 = $372.90


/CL Opening setup/trade (Feb 2, 2015)

Closing trade
BOT +1 IRON CONDOR /CLJ5 1/1000 APR 15 /LOJ5 60/61/40/39 CALL/PUT @.12
Debit = $120

Profit = $240 (credit collected from opening trade) – $120 = $120
Total commissions (opening & closing) = $29.68
Profit incl. commissions = 120  – 29.68 = $90.32


SOLD -1 STRANGLE /CLK5 1/1000 MAY 15 /LOK5 67/30 CALL/PUT @.43
Neutral bias
Order

Note: Commissions not included
Max. Profit = $430.00
Max Loss = $Infinite
Initial buying power reduction (BPR) =~ $1,100
Note: Unlike an Iron Condor the BPR for a short strangle can change drastically if the underlying makes a significant move either way.  Options on futures require low margin to start off with (use span magin).  The wings I bought were around a 5 delta (around 2 STD out each way).  However, this trade might require active management to keep deltas in check or the losses could be significant.
DTE = 52
BE = 29.57 & 67.43
POP =~ 63%
Max ROC  = 430/1,100 =~ 39%
Would look to take this off around 30%-40% of max. profit.

P&L diagram
Chart

/GC (Gold Futures) Broken Wing Butterfly: 2/10/2015

BOT +1 BUTTERFLY /GCJ5 1/100 APR 15 /OGJ5 1215/1210/1200 PUT @-1.40
Bullish bias
Order

Note: Commissions not included
Max. Profit = $640.00
Max Loss = $360.00
DTE = 44
BE = 1203.70
POP =~ 73%
Max ROC  = 640/360 =~ 178% – this is only if the underlying closes exactly at 1,210 (short strike) upon expiration.
Buying back the embedded short PUT vertical (-1205/+1200) for anything lower than 1.40 (credit collected for the trade) would turn the resulting regular butterfly (1215/1210/1205) into a risk free trade.

P&L diagram
Chart

/GC (Gold Futures) Broken Wing Butterfly: 1/6/2015 – Update 1

Opening setup/trade (Jan 6, 2015)

Bought back the embedded short PUT vertical (-1190/+1185) for 0.30.
BOT +1 VERTICAL /GCJ5 1/100 MAR 15 /OGH5 1190/1185 PUT @.30
Order

The remaining regular butterfly (1210/1200/1190) is now a risk free setup.
P&L diagram
Max. profit at expiration would occur at the short strike (1200).  GC is trading around 1294, but there are still 31  day left to expiration.  As such there is time to decide on when to close the trade.

/GC (Gold Futures) Broken Wing Butterfly: 1/6/2015

BOT +1 BUTTERFLY /GCJ5 1/100 MAR 15 /OGH5 1210/1200/1185 PUT @-1.40
Bullish bias
Order

Note: Commissions not included
Max. Profit = $1,140
Max Loss = $360.00
DTE = 50
BE = 1,188.60
POP =~ 57%
Max ROC  = 1,140/360 =~ 317% – this is only if the underlying closes exactly at 1,200 (short strike) upon expiration.
Looking to buy the embedded short PUT vertical (-1190/+1185) for around 1.00.  Buying this for anything lower than 1.40 (credit collected for the trade) would turn the resulting regular butterfly (1210/1200/1190) into a risk free trade.

P&L diagram
Chart