May 1 2019 (STT BWB+ BSH trades)

Just got back from my 3 week west coast trip. We made our way from San Diego up to Portland. It was the first trip since I started trading that I didn’t have stress or issues in the market. A true testament to the new strategy. I could do everything simply from my phone and I barely had to load up ONE. It was beautiful. Refreshing. Man what a nice feeling!

My trading tasks would basically entail looking at market 3x a day and either add new Bubs fresh, raise the UEL or harvest the lower longs. I knew based on my summaries before I left that I needed to slowly raise my UEL on existing trades (Aug and Sep). So I knew ahead of time I’d add a pos UEL bwb in those expirations by a specific amount. When we had a red day, I’d get ‘er on. We did and that was that. I also wanted to get on more new ones which I was able to do finally today. I also harvested my lower longs as they decayed and that removed risk. So yeah, essentially, it was a breeze. I just put on some BWBs whenever we had some red days or vol pop and I harvested the lower puts up and that was it. Stress free. Due to some skew issues the vol collapse didn’t net much in terms of P/L but it’ll come soon.

Today I am putting on some Oct BWB trades now that we’re -0.80% after the fed. I got on some BSHs earlier, now I am putting on the corresponding BWBs with this nice little vol pop of 9%. I just put on 40 units. Might get another 10 on if I can. PC is about 200k per 10. Good to go. About at 1.1x PC and not much left to do for another 2-3 weeks 🙂

5 thoughts on “May 1 2019 (STT BWB+ BSH trades)”

  1. Great to hear. Yeah, it’s been a pretty low stress month. I ended about +4%, with same strategy (STT-BWB, BSH factory). Pretty simple management and no big drawdowns.

  2. Hi Patrick- is STT-BWB a STT variant or just a back STT with an at them money BWB? Still getting thru the course but curious about this structure you refer to often. Thanks, Matt

    1. It’s a variant of the back-stt using a butterfly structure rather than the old one. More efficient use of contracts/easier to put on/take off. Equiv to back-stt but in BWB format.

      1. Did you conceive that variant and/or is it named on the MM trade page? Can’t figure how you structured it. In the past I have stuck to condors and PCS.

        1. The mastermind group worked together to create a lot of variants and one was a more efficient way to do an STT. I was involved directly in the creation of a few of these trades and presented ideas several times. The most recent presentation focused on my specific variant of the STT+BSH and that’s what I trade now.

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