Update (IRA): QQQ Sept 30th 315/Oct 21st 355 Long Put Diagonal

Comments: Update to my QQQ short delta hedge (See Post Below), which is in somewhat better shape than my IWM and SPY short delta hedges, since price has been hanging out around the short leg of the setup, which has allowed me to collect more cost basis reducing extrinsic value than for my small cap and S&P short option legs. The short option leg of this setup is at the 40 delta, while those of my SPY and IWM setups are at the 12 and 15 delta strikes respectively.

That being said, I'm running out of road sooner with this setup than in the other two, with only three potential rolls of the short leg to go before I hit the "back month long wall." As usual, I'll cross the bridge of having to roll out the long option leg for duration when I come to it ... .

In any event: Cost basis of 36.77 as of the last short leg roll on a 40 wide with a 318.23 break even.

Comment:

Unlike my SPY and IWM short delta hedges, leaving this one alone, since the short put is in-the-money and the diagonal is amenable to max profit (assuming price stays sub-315 at/near the September 30th expiry). Naturally, if we get a traverse of 315 again, I will roll it out for additional credit, but will also probably take it off within .25 of max (which is 40.00) and then reset if I still need the short delta.

Trade closed manually:

Closed for a 39.46 credit, about .50 shy of max profit. 2.69 ($269) profit.