Collar Project.
Client begins with account balance below
Net LIQUIDATING VALUE $16,449.74
TRADE ONE
Underlying SPY trading at $208.00
Original Trade 15 days
Buy the 205- 203 (1x) Bearish put financed by the Naked sell of the 198 put (2) for a net credit.
Filled two units
MARGIN $12,700.00 or $6350.00 each, available adjusting buying power $3749.74
END OF TRADING DAY ONE.
TRADE TWO SAME THING WITH XLE no credit position, just a delta directional trade no THETA DECAY
next week Original spy trade will be closed either outstanding leg for less then .05 commission free or rode to zero and repeat
Closed at .05 4x no commission $20.00
RE imitated for the next two weeks
(/vx future was at 14.50 or the vertical would have been two wide so it had to be reduced to 1.50, and we expect a lower move down in /vx)
Credit .44 cents .. remaining front month .18 cents credit front put vertical .. I can either fly off for 10 cent credit or leave for back month positions potection.
FLYed off front vertical for .08 cents
reduces decaying close of the .18 front vertical to .10 cents (12 less commission)
Ending position
Front month 2 dollar wide fly , back month 1.50 wide 2x naked 4x single leg.
Close of back month spread done at 44 credit closed at .18
Made agressive 1 x 3 front month 3 day trade
Fill
Current three day Risk Graph