Opening (IRA): QQQ June 17th 272/September 16th 355 LPD*

... for a 60.78/contract debit.

Comments: Additional short delta hedge to a long delta portfolio. Here, selling the front month 30 delta, buying the back month 90 to provide me with a net -60 delta/contract. Paying 60.78 for an 83-wide with a 294.22 break even.

I generally don't like to add on weakness, but my other broad market short delta hedge is converging on max profit (See Post Below) and doesn't have much short delta left in it.

* -- Long Put Diagonal.

Trade active:

Rolling the short put from the June 17th 272 strike to the June 24th 284 strike (30 delta) on this up move. 57.22 cost basis on a now 71 wide/297.78 break even.

Trade active:

Rolling the June 24th 284 to the July 1st 287 for a 1.76 credit. Cost basis now 55.46 on a 68 wide with a 299.54 break even.

Trade active:

Rolling the July 1st 287 to the July 8th 287.5 for a .90 credit on this weakness here. Cost basis is now 54.56 on a 67.5 wide with a 300.44 break even.

Trade active:

(Friday): Rolled the July 8th 287.5 to the July 15th 288 (there was no 287.5 in the July 15th expiry) for a 1.45 credit. 53.11 cost basis; 301.89 break even, 67 wide.

Trade active:

Rolling my short option leg out on price's traverse of the short put strike (which is when you'll collect maximum extrinsic). Rolled the July 15th 288 to the July 22nd 288 for a 1.24 credit; 51.87 cost basis with a 303.13 break even on a 67 wide.

Trade active:

Rolled the July 22nd 288 to the July 29th 288 for a 1.31 credit. 50.56 cost basis on a 67 wide, 304.44 break even.

Trade active:

Rolled the July 29th 288 to the August 5th 288 for 1.12. 49.44 cost basis on a 67 wide with a 305.56 break even.

Trade active:

With the September 355 converging on 100 delta and with little extrinsic left in it, extending duration by rolling it out to the October 355 for a .43 debit. I may not need the extra duration, but it's best to do this if you're going to do it when it's cheapest (which is generally when the long is at 100 delta such that the roll out will also to be a strike with minimal extrinsic). 49.87 cost basis on a 67 wide with a 305.13 break even.

Trade active:

Rolling the August 5th 288 to the August 12th 288 for a .99 credit on this weakness. 48.88 cost basis on a 67 wide with a 306.12 break even.

Trade active:

Rolling the August 12th 288 to the August 19th 294 for a 2.23 credit. 46.65 cost basis on a 61 wide with a 308.35 break even.

Trade active:

Rolling the August 19th 294 to the August 26th 302 (30 delta) for a 2.57 credit at >50% max. Cost basis of 44.08 on a 53 wide with a 310.92 break even.

Trade active:

Rolled the August 26th 302 to the September 2nd 302 for a .92 credit. Cost basis of 43.16 on a 53 wide with a 311.84 break even.

Trade active:

Rolled the September 2nd 302 to the September 9th 311 for a 2.15 credit. Cost basis of 41.01 on a 44 wide with a 313.99 break even.

Trade active:

Rolled up into weakness (but not past my cost basis) from the September 9th 311 to the September 16th 314 for 1.59. 39.42 cost basis with a 315.58 break even on a 41 wide.

Trade active:

Rolling up into weakness. Being somewhat aggressive here since I'm running out of road (the back month is the October 21st). Rolling from the September 16th 314 to the September 23rd 315 for a 1.63 credit. Cost basis of 37.79 with a 317.21 break even on a 40 wide.

I can always roll out the back month long, but each time you do that, you're probably going to be paying some extrinsic (and then some, particularly if you want to roll out/reset to a back month 90 delta). Consequently, you want to do that "sparingly" or only when you have to.

Trade active:

Rolled the September 23rd 315 to the September 30th 315 for a 1.02 credit. 36.77 cost basis with a 318.23 break even on a 40 wide.