Looks to me like you sold a weekly put with 3 days to go, and bought a strangle about a month out. Debit of $4.29 per contract or -$1287 right now. If the Nov22 put expires, your debit is then -$924. If the trend remains steady or bullish, next week you will sell another put to further reduce your cost. By 12/20/19 your debit balance should be be close to zero and if the Q’s are below 197.5 or above 202 then, it’s pure profit. That doesn’t cover all the what-ifs but am I following this trade correctly so far?
Looks to me like you sold a weekly put with 3 days to go, and bought a strangle about a month out. Debit of $4.29 per contract or -$1287 right now. If the Nov22 put expires, your debit is then -$924. If the trend remains steady or bullish, next week you will sell another put to further reduce your cost. By 12/20/19 your debit balance should be be close to zero and if the Q’s are below 197.5 or above 202 then, it’s pure profit. That doesn’t cover all the what-ifs but am I following this trade correctly so far?
Very good! The trade keeps going on and on.
Here is a position I placed yesterday.
-3 QQQ Nov 22 202 Put 1.21
3 QQQ Dec 20 197.50 Put 1.86
3 QQQ Dec 20 202.00 Call 3.64
I just closed the Call and the Sold Put. I am sitting with the Long Put only at this time.