July 20, 2009

I sold 5 contracts of SPX Aug 765 put at 0.9. Total credit = $450

Total debit for the existing portfolio = $920-450 = $470.

Option expiration

The previous positions with total credit of $5375 have been expired worthless today. It means I have made $5375 from that portfolio.

I just sold 3 contracts of SPX Aug 825 put at a credit of $3.5. A total of $1050 is credited to the current portfolio.

Total debit for the existing portfolio = $1970 - 1050 = $920.

New position for July 2009

BOT +2 1/-2 CUSTOM SPX 100 AUG 09/JUL 09 850/850 PUT/PUT @9.85 CBOE

I opened the above strategy just before the close today. Total debit = $1970 for this new position.

weekly expiration

SOLD -3 SPX 100 JUL 09 875 PUT @8.60 CBOE

I just sold all remaining Jul 875 put for a total credit of $2580.

Total credit for the portfolio = $2795+2580 = $5375

Unwinding position

SOLD -4 SPX 100 JUL 09 875 PUT @7.00 CBOE

Just sold 4 Jul 875 put for a total credit of $2800.

Total debit for the portfolio = $5 - $2800 = -$2795

That means, total credit for the portfolio = $2795.

Continue hedging

Yesterday at 4:06 pm, a limit order to sell one contract of SPX Jul 875 put was executed.

Total debit for the portfolio = $755 - 750 = $5.

I will continue to sell more puts next week.

Add more hedge

SOLD -2 SPX 100 (Weeklys) JUL1 09 875 PUT @1.60 CBOE

I just sold additional 2 puts to further reduce the negative bias.

Total debit = $1075-320 = $755