Putting on an July Position

    Along with taking off my June position, I also put on my July position. I put it on Friday at exactly 56 day to expiration which is the recommended time. Because of the low Delta value, had to put on 12 butterflies at 1080 because only 10 butterflies would have had -85 Delta. With the 12 butterflies, the position had -99 Delta and to balance that I bought a 940 call with positive 95 Delta bringing the position's Delta to the recommended -5. The current Greeks of the position are: -5 Delta, -0.47 Gamma, 83.88 Theta, and -380.4 Vega.

The risk profile graph of the position can be seen below:

Closing the June Position

     First of all, I would like to apologize for not posting in a while. I was at the Virginia Junior Academy of Science a few days ago (unfortunately not with an options project like last year which you can see in my earlier posts) and did not have any wi-fi. I used Backtrader to follow the June position from last time I posted and on Thursday, May 12, I reached over $2000 in profit so I decided to take the position off. I did not need to adjust anything from the last time I posted so I was quite lucky this month. The position ended with the following Greeks:-12.4 Delta, -3.46 Gamma, 137.9 Theta, and -557.6 Vega. The exact profit for the month is $2171.

The risk profile graph can be seen below:

Removing the May Position

     With the position being on for a few weeks, once I hit over a thousand dollars in profit on Tuesday I decided to take the position off. On Monday however, I had to adjust the position because it had accumulated -127 Delta with a sudden rise in the market. I added three verticals to the position to make the Delta -88 and since the market was inside the tent, the value was within the -100 limit. The position was closed with the Greek values of 21 for Delta (would have been a problem if I hadn't decided to take it off), 415 for Theta, -679 for Vega, and -8 for Gamma. The total profit of the position when taking it off was $1213.

The risk profile graph from Tuesday can be seen below:

Putting on and Updating my June Position

      Originally, I had planned to put on my June position at 56 days until expiration which is recommended for the position but I only just got around to it. I put the position on through BackTrader on Friday (49 DTE) which was down about nine points and at about 1130. Following the 20-30 points rule, I put on my butterflies at 1100 (being more worried about the backside than the front). I also bought a call at 1000 with a Delta of 90. When I put on the position, I also had to put on a vertical to balance the Delta since you shouldn't buy a call that is too far in the money (problems with extrinsic value).

The risk profile graph from Friday can be seen below:

       The position needed no adjusting until yesterday when the market moved back significantly and the Delta value became 18. Since the limit for positive Delta is 20, I found the value a bit too close for comfort and decided to move the butterflies down. It was not a significant shift, only 10 points, to adjust the butterflies to 1090. With this shift, the Delta was only 3 and was not as large of a concern. As of today, the position is up about $601 and the Greeks of the position are as follows: Delta 7.28, Theta 108, Gamma, -2, and Vega is -478 (bad for the position recently because the market has been down causing the volatility to rise but since the position has a negative value, it inflicts damage).

The current risk profile graph can be seen below: