Opened (IRA): SPY May 20th 406/September 16th 486 LPD*

... for a 58.84 debit.

Comments: Opened this yesterday with my other short delta hedge convergent on max profit and with little short delta left in it, (See Post Below), such that it was no longer functioning as much of a hedge.

Bought the back month 90, sold the front month 30, paying 58.84 for an 80 wide with a 427.16 break even and a max profit potential of 21.16 ($2116) (36.0% ROC at max).

* -- Long put diagonal.

Trade active:

Rolled the 406 to the 410 at the open for a 1.96 credit, attempting to take advantage of the weakness. Cost basis in the diagonal now 56.88 for a 76 wide with a 429.12 break even. Turned out, however, that the weakness got even weaker.

Trade active:

Rolled the May 27th 410 to the June 3rd 410 for a 1.15 credit to collect at-the-money extrinsic. Cost basis now 55.53 for a 76 wide with a 430.47 break even with delta/theta of 39.86/19.65. Since price has now broken through the short option leg, the plan is to leave it alone and take it off if it converges on max profit (76.00).

Trade closed manually:

Closing here for 75.20, 19.47 ($1947) realized profit/contract. Will re-open a new one shortly.