TLT Short Strangle Options Trade – Jerry’s Trading Journal for October 1st, 2019

Yesterday, I entered into a TLT Short Strangle, much like the SPY trade I added last week. It’s a Nov 1st, 138 / 147.5 strangle, with deltas around 22. My plan is to try to get 50% of my premium, although in this option analyzer tool below, it seems like it’s theoretically impossible to get to 50% of my premium by just 21 days, so I may hold a bit longer to get there, if I can stand it. If held to expiration and it’s between the strikes, I’ll get my max profit. Each line in the chart below represents a different date with the theoretical value plotted on the Y axis, and the stock price on the X. The idea is for it to finish somewhere around 142-144 at expiration to get the max ($151.30) out of the trade. As the price of TLT moves around, it could be more or less depending on the date and value at the time. The bottom grid of the chart also helps put exact dollar amounts around the various values and dates. I added the orange bar as a theoretical value on 10/11/19. Seems the best I can hope for would be $58.45 if the stock was 142 that day.

Leave a Reply

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

%d bloggers like this: