Wednesday, May 27, 2015

Exited June$116/111p TLT position with a targeted profit

Yesterday, TLT finally rallied back to the entry price level and a bit higher, after 3 weeks of entry and with 24 DTE. Its IV also dropped a bit. Since my bull put June$116/111p position was against TLT downtrend, my profit target was 50% of max potential. So I set a closing order for $30 around 9:00 AM PDT yesterday as my entry credit was $0.60. It got filled in about one or two hours later. The TLT trade went against me immediately after the entry but was never seriously endangered as it did not touch short strike $116 at all. The 50% of max potential profit in 3 weeks worked perfectly for the strategy.
Now I have one XLE bull put position open and two potential positions to be opened for this portfolio. Looking at the other 5 remaining ETF candidates, I don’t feel they are at any turning boundaries yet. So I’ll wait for new opportunities to come.

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