DELTA HEDGE: SOLD RUT/IUX AUG 29TH 1120/1130 SHORT PUT VERTICAL
... for a 1.10 ($110) credit.
Here, I'm adding a touch of long delta into an existing RUT position (an iron condor) for which I do not feel comfortable rolling the short put side up further to protect that particular setup from further upside. Additionally, I get the side benefit of just adding a little long delta to my entire portfolio, which (no surprise) is a bit more net delta short than I'd like at the moment with this up move.
Naturally, this creates an imbalance between call side units and put side units in my RUT position. However, I'll keep an eye on the entire RUT positions' net delta and match this put side up with a short call vert in the same expiry should price roll back to the put side and cause my net RUT position to skew delta long.
Here, I'm adding a touch of long delta into an existing RUT position (an iron condor) for which I do not feel comfortable rolling the short put side up further to protect that particular setup from further upside. Additionally, I get the side benefit of just adding a little long delta to my entire portfolio, which (no surprise) is a bit more net delta short than I'd like at the moment with this up move.
Naturally, this creates an imbalance between call side units and put side units in my RUT position. However, I'll keep an eye on the entire RUT positions' net delta and match this put side up with a short call vert in the same expiry should price roll back to the put side and cause my net RUT position to skew delta long.
Zlecenie zamknięto ręcznie:
Since I'm rolling the spread that this was intended to temporarily delta hedge, I'm covering it here for a .75 debit ($75), freeing up the buying power for other plays.