Exited IWM July$117/112 bull put spread on profit target

In a little over 3 weeks after IWM July$117/112 bull put spread entry, IWM rose from around $124.5 to $128.5. It followed the trending channel I drew before. My general exit rule is to take profit around 70% of max potential profit. But I was not able to access my broker’s web site as I was vacationing in a mountain area on last Thursday. So I closed it today for a debit of $0.10, which gave me 81% of the max potential profit with 25 DTE.

For the SPY July$202/197 bull put spread, the SPY did broke the up-trending support line but formed another bottom around $208, which was far away from the short strike of $202. Due to the general bullish outlook, I’ll target for 70% of the max potential profit for closure on this position. For the XLE July$76/71 bull put spread, XLE dropped after the day of entry to as low as $75.88. It did not trigger my adjustment yet, as the Delta of the short strike did not reach 0.65. For this position, I might try to exit as it reaches break-even point in the last 3 week before its expiration, following my exit plan for failing positions. Contrary to normal actions, XLE’s IV reduced as XLE price fell in the last month.

Based on my current projection, SPY may rise to $213 area in a few days. It would be good for a bear call entry for IWM at that time since IWM outperforms SPY for now and will be extended from upper Bollinger band most likely.

Sold SPY July$202/197 bull put spread

I have a general bias towards a slightly up-trending market as shown in the SPY diagram below. Today, I felt the SPY had pulled back for 7 days and was about to rise again. After looking at the SPY July$202/197p which had its short strike Delta of 0.2 and 44 DTE with a satisfactory credit of 0.56, I decided to use my last power for the portfolio to entry this bullish position. The short strike $102 is below the 200DMA and other support levels as shown in the diagram.

My two other positions on XLE & IWM are behaving normally at the moment. Now my portfolio is fully positioned and my task will be managing the existing positions in the remaining days of the July option cycle based on my trading plan.