Time is On My Side – Juicy Thetas

Yesterday I wrote about managing my trades during the market turmoil. After I wrote that article, I had a chance to reflect. http://oracle.davidkanter.com/2019/08/05/managing-my-options-trades-during-market-turmoil/ I decided that moving my 50% targets to 25% of max profit might have been a bit drastic. Today, I adjusted all my GTC closing orders at a 50% profit target. With my bad TLT trade, I adjusted to break even, including the cost of commissions. No sense in throwing away good money during this high volatility period. While all my trades are at a loss at the moment, I could see today that they were starting to come back to profitability. Most have over 30 DTE so I think I have a bit more time to watch the vol contract. At least I can make a better decision when there’s 21 DTE. These trades also have juicy thetas. My Netflix trade has a theta of 2, while my GDXJ strangle has a theta of 4! That means each day these trades pay me 6$ to hold. Lucky for me, time is on my side. GDXJ Strangle

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: