IWM 175/170 Put Credit Spread - Apr 8th
Put Credit Spread
Strikes: 175 short / 170 long
Credit received: 0.54
Max loss = 5.00-0.54 = $446
It has been a while since I posted and this is for a couple of reasons.
1. A short vacation away to kick back and relax
2. The markets have been chopping all over my currently open positions and taking longer to turn and burn trades, meaning there just was not much to do as I was very close to my % capital deployed limits.
This trade is simple simple. I closed out my IWM 185/180 yesterday with the pop, so today I put on a 175/170 even further out. I could sit here and tell you how I think the market is going to go roaring back up due to X Y and Z, but the reality is I have no clue. I am simply identifying areas outside of the current range, that provide a decent margin of error and decent compensation. Then I manage the trade as needed and make sure to follow my rules of -200% SL and 50% TP.
I think this needs to be said because as traders we are looked to for the answers but often we are just being mechanical. Would I like to be in a trend here where I could feel very confident about putting on a bullish trade? For sure, but that is not the case. And if we want to make money, we need to be in the game. This doesn't mean that I am not going to scale back position size and tighten other parameters such as delta etc.
What do you do in times of uncertainty, I am curious to hear - leave it below!
Strikes: 175 short / 170 long
Credit received: 0.54
Max loss = 5.00-0.54 = $446
It has been a while since I posted and this is for a couple of reasons.
1. A short vacation away to kick back and relax
2. The markets have been chopping all over my currently open positions and taking longer to turn and burn trades, meaning there just was not much to do as I was very close to my % capital deployed limits.
This trade is simple simple. I closed out my IWM 185/180 yesterday with the pop, so today I put on a 175/170 even further out. I could sit here and tell you how I think the market is going to go roaring back up due to X Y and Z, but the reality is I have no clue. I am simply identifying areas outside of the current range, that provide a decent margin of error and decent compensation. Then I manage the trade as needed and make sure to follow my rules of -200% SL and 50% TP.
I think this needs to be said because as traders we are looked to for the answers but often we are just being mechanical. Would I like to be in a trend here where I could feel very confident about putting on a bullish trade? For sure, but that is not the case. And if we want to make money, we need to be in the game. This doesn't mean that I am not going to scale back position size and tighten other parameters such as delta etc.
What do you do in times of uncertainty, I am curious to hear - leave it below!
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