ATM Trade Update

Here’s the risk profile of a current ATM trade that represents about 1MM in planned capital (for my use). It’s 100 1620/1580/1530s and 100 1600/1560/1510 butterflies. Fully scaled in. I’ll adjust on the upside when delta hits -250 or so and will roll the butterfly down if we exceed short strike by 30 points.

ATM Trade

Pretty much all I have on re options trades right now. Waiting for entries. The LTI portfolio is fully entered for the month so I wait until next to rebalance.

4 thoughts on “ATM Trade Update”

  1. Hi Patrick.
    Are you noticing the volatile skew of options in the last days? The vix has not risen so much. I guess it is due to the commercial war and tariffs on December 15. Are you taking advantage of these days to get new trades or do you prefer to wait to see what happens on Monday 16?

    Thank you.

  2. Good luck with this one Patrick! Mind sharing what type of upside adjustment? I’m already thinking call calendar spread ala Rhino??

    1. I start with call calendars about 30 points up 1 month spacing. For older trades i do a Call BWB 30/50 spacing about 20-30 points above market.

  3. Hey, in-conjunction with STT which atm trade would you recommend someone for SPX. I normally trade M3 or The Rock . will Rhino be a good stratergy for SPX for ATM with STT at the back ?

Leave a Reply

Your email address will not be published. Required fields are marked *

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