Didn’t Stick the Landing

I had high hopes I’d be able to close my first $SPY options campaign of 2021 for a profit today, but Mother Market has a sense of humor.

In yesterday’s video, I talked about how the adjustment I made to the position would be a winning move in 4 out of 5 possible scenarios for SPY today. Well, wouldn’t you know that fifth scenario played out. At least at first…

Midday today, SPY was on a tear up over 6 points on the day. So in this video, you’ll see me roll my expiring ITM calls out to the next expiration (Friday) for a credit as well as roll my winning puts that were expiring into a new position also expiring on Friday.

I was feeling a little uncomfortable about having to roll my short calls to a strike that was still ITM. I choose to do that because I want to earn credits on all short option rolls I perform. Big picture, I’m trying to chip away at the total debit I have in my long straddle position that expires on January 29.

Well, my uncomfort with my ITM short calls dissipated later in the day as SPY sold off into the close. Now SPY is currently sitting in between my short options strikes — precisely where I’d like it to chill out for a bit.

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