Wednesday, 14 February 2018

New position: ODAX April 2018 Iron Condor

Summary

After deploying the small Put Spread in March, I finally decided to go for an April 13100/13500 - 11100/10700 Iron Condor.
DAX 30 on February 14th 2018. Source Investing
This time I´m betting on a sideways market for some time after the recent selloff. With the relatively high IV I got some good distance for the short options, especially in the short Put. In the Call side is tighter but I hope that a further IV drop will make any adjustment cheaper.

Sunday, 11 February 2018

Closed: February 2018 Put Spread - Rolled to March

Summary

Big drop this week and bad timing anticipating a bounce upwards. I tried to close the trade on Thursday but the spreads were crazy wide, luckily on Friday morning a little bounce in the opening allowed me to close the spread at 35 delta.
DAX 30 on Feb 9th, at close. Source Investing
After that, I deployed another Put Spread in March, another 1000 points down (11.100-10.900) with only half the width (200 as opposed to 400 points).

Monday, 5 February 2018

New Position: ODAX February 2018 Put Spread

Summary

I have been in the sidelines during this month waiting for the rally to weaken and IV to increase, as I have had a couple of bad experiences selling Credit Call Spreads in that environment and selling Put Spreads seemed to be a bit suicidal too.

Now the correction is here, but it has arrived stronger that expected, both in Europe and USA, so I decided to go for a 12100 - 11700 Put Spread for February and not March.

DAX 30 on Feb 5th 2018. Source Investing

Next week, we should have better visibility on the size of the correction and I might dare opening another Put Spread in March.

Monday, 8 January 2018

Closed: ODAX February 2018 Iron Condor

Summary

Bad timing again. A few days after opening the position a sudden rise in the index made me adjust the trade on the call side when it reached 30 delta. As there still were six weeks to go before expiration, I also closed the put spread as it had already reached 70% of the maximum possible profit.
DAX 30 on Jan 8th 2018. Source Investing
I did not want to roll the call spread higher with the current low volatility, as the 16 delta is merely 200 points above the current level. The same happens on the put side.

Thursday, 28 December 2017

New position: ODAX February 2018 Iron Condor

Summary

After closing the January position, I opened a new one for the February expiration cycle. It is a regular Iron Condor placed at 12300-11900 on the put side and 13600-14000 on the call side.

DAX 30 on December 28th 2017. Source Investing
I am also reusing the remaining debit call spread placed on 13400-13450 which is a remnant of last month´s position.

Closed: ODAX January 2018 Iron Condor

Summary

After closing the put leg some days ago, today I was able to close the remaining call spread locking around 73% of the premium received.

DAX 30 on Dec 28th 2017. Source Investing.com
I decided not to wait until expiration in order to open a new Iron Condor in February, while reusing the February 13400/13450 debit spread as hedge. Having the two call spreads open at the same time seemed too much risk for me.

Thursday, 14 December 2017

ODAX January 2018 Iron Condor Update: Closed Put Spread

Summary

After 15 days out of 52, without any movement in the DAX index and today´s significant drop in IV, I managed to close the Put leg of the Iron Condor for about 60% of the maximum profit.

DAX 30 on December 14th 2017. Source Investing

I am being quite conservative here, as the put leg was the more vulnerable in this trade, as in case of a drop I would not have any hedge to finance a possible adjustment (unlike the call leg with the February Bull Call Spread) while I still would incur in the loss of the hedging trade.