Closed Profit/(Loss): $389
Opened Trades: 2
Managed Trades: 0
Closed Trades: 6
Open Positions: 19

Cumulative P/(L): $66,658.871

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Opened

• On Thursday, I decided to sell a Short Put in Euro/USD Futures (/6EZ6). I am short the 1.16 Strike out in the October 9th expiration, which was about a 33Δ at entry. This was a bet that Warsh won’t be as hawkish on Friday as the market expects. I did not get the reaction I expected, but I am okay with sitting.

  • Bias: Bullish/Neutral
    POP: 80%
    Credit Rcv'd: $600
    Max Profit: $600
    Max Loss: ($144,400)
    BP Usage: $1,667

    

• On Friday, I decided to go long Bonds via a Short Put in the Bond Futures (/ZBZ6). The market reaction to Warsh’s Jackson Hole meeting was negative. I think this is an overreaction. Playing for a reversal from the market perceiving a hawkish tone. I am short the 107 Strike in the October 23rd expiration, which was a 29Δ at entry.

  • Bias: Bullish/Neutral
    POP: 79%
    Credit Rcv'd: $750
    Max Profit: $750
    Max Loss: ($106,250)
    BP Usage: $3,022

    

Managed

• No trades were managed this week.

Closed

• On Monday, I went with a 0 DTE Put Broken-Wing Butterfly in the S&P 500 Index (SPX). I routed this for a small credit of $20. I was playing for a little downside to end the day. SPX danced around $7,660 - $7,650 most of the afternoon (which was good for this trade). With about 30 minutes before the closing bell, I closed this out for an additional credit of $90. I walked away with about 21% of Max Profit, netting $110. If I had let this expire, I would have locked in another $200-ish of profit. Would have been nice, but it’s a small difference.

  

• On Tuesday, I opened another 0 DTE Put Debit Spread in SPX. I bought the $7,675 strike Put and sold the $7,665 strike Put for a total debit of $290. I went ahead and this one expire. This ended up expiring worthless for a loss of $290. It could have been a winner if I closed it earlier in the day, it happens!

  

• On Wednesday, I went with a 0 DTE Iron Fly on SPX. I did this with about an hour and 15 minutes left before the close. I went $10-wide, pinning SPX at $7,675. My credit received at entry was $630, which made my Max Loss $370. SPX ran up quite a bit after I opened this, but I decided to sit. I went ahead and let this one expire and SPX settled at $7,675.70. This gave me a nice winner at 89% of Max Profit, netting $560.

  

• I also participated in earnings with a 2 DTE Call Butterfly on Wednesday. This is a follow from Dr. Jim at Options Uncapped (ex-Tastylive). I liked the risk/reward and felt like I wanted to put it on too. This was a bullish strategy pinning NVDA by $225 on Friday for a cheap debit of $235. NVDA had a nice positive reaction and this butterfly pinned right where I wanted it. I was able to close this out on Thursday for a 200% gain, netting $470.

  

• On Thursday, I decided to do another 0 DTE Iron Fly in SPX. Again, I went $10-wide, pinning SPX at $7,715. I opened this with about an hour and 15 minutes remaining before the close. I received a credit of $715 at entry, making my Max Loss $285. SPX cooperated for most of the remainder of the trading session, except for the last 15 minutes or so. I decided to let this one expire as I have done previously. SPX settled above $7,730, which was above my long leg of $7,725. This trade resulted in a Max Loss of $285.

  

• On Friday, I went with another 0 DTE SPX trade. This time I did a Put Butterfly that was $15-wide, pinning SPX at $7,700. I opened this with about 45 minutes left in the trading session. I noticed a lot of open interest at this Strike, and it is a round number. I paid $500 for this trade, which makes my Max Profit $1,000. I went ahead and let this trade expire again and SPX settled at $7,711.76. This was a few dollars inside my $7,715 wing. This closed for a loss of $176.

  

Open Options/Futures Positions

Note: /SIC was not displaying correctly when I took this screenshot.

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $1,639.38
Opened Trades: 2
Managed Trades: 2
Closed Trades: 11
Open Positions: 17

Cumulative P/(L): $66,269.871

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Opened

• On Thursday, I decided to open one Long Contract on Swiss Franc/USD Futures (/6SU6). This is a play that the US Dollar continues to weaken a bit. Small amount of Buying Power used for this. I am Long at 1.25175. It is a trade suggestion from Ilya Spivak at Tastylive. Continuing to get my footing with currency futures.

  • Bias: Bullish
    POP: 50%
    Max Profit: ∞
    Max Loss: ($156,469)
    BP Usage: $990

    

• There has been a little more discussion about Silver lately. I decided to add to my 2 Short Puts in with a Long Call in the December 18th expiration. I went with the $70 Call, which makes me long about 200 deltas overall (including my 2 Short Puts). It’s a small amount at risk and I felt best to do this rather than adding to my /SIC Long. I also gave myself plenty of time with 120 DTE.

  • Bias: Bullish
    POP: 24%
    Debit Paid: $400
    Max Profit: ∞
    Max Loss: ($400)
    BP Usage: $400

    

Managed

• On Wednesday, I was about 8 DTE on my Long in Silver 100-Ounce Futures (/SICZ6). I decided to roll this out to the Z contract for a debit of 0.74. This brings my basis in my long up to $96.74. Still down a bit on this, but we are starting to see some bullish momentum in the metals.

  

• had some downside momentum this week. I decided to take the opportunity to lock-in a risk-free fly on my Covered Call Ratio Spread. On Thursday, I bought the $245 Call for a debit of $60. This locks-in a credit of $170 and a bonus up to $500 if BA closes between $235 and $245 by September 18th.

  

Closed

• On Monday, I felt like we were chopping lower. I opened a small 0 DTE Put Debit Spread in the S&P 500 Index (SPX) at $7,755/$7,750 for a debit of $175. I closed this out with a few seconds to go before market close for a 191% gain, netting $335. I somehow got filled for a credit above the max width of the spread. No idea how, but I will take it!

  

• Bonds Futures (/ZBZ6) have continued a downward trend. On Monday before the close, I sold a Short Put at the 106 Strike, which was a 31Δ at entry. Bonds had some upward momentum on Tuesday, I decided to take this trade off quickly for 15% of Max Profit, netting $109.38. I did not anticipate the US intervening as they did on Wednesday. Would have been able to make more on this trade otherwise!

  

• On Tuesday, I felt like the market was going to continue to see a little bit of downside (similar to Monday). I went with another 0 DTE Put Debit Spread in the SPX. I went with the $7,695/$7,690 Debit Spread for a debit of $150. I went ahead and let this one expire. The Long Put expired ITM a few points, but the full spread did not. This gave me a nice win for a 116% gain, netting $174. This is the beauty of the cash settled nature of SPX and going small at entry.

  

• On Wednesday, I decided to go back in on a 0 DTE Put Debit Spread in SPX. I felt like we were going to see some more downside into the close. I went with the $7,710/$7,705 Debit Spread for a debit of $160. SPX climbed up slowly after I entered this. I decided to Buy to Open the $7,715 Put and Sell to Close the $7,710 Put for an additional $120 debit. This left me with a $7,715/$7,705 Put Debit Spread for a total debit of $280. I let this expire and only the Long Put expired ITM. This gave me a nice win for a 151% gain, netting $422.

  

• had a nice couple of green days to start the week. I decided to close out my Super Bull for an additional credit of $90 on Wednesday. This ended up being a 122% gain, netting $505.

  

• On Thursday, I went back in on a 0 DTE Put Debit Spread in SPX. I felt like it was possible we continued to slide down into the close. I went with the $7,675/$7,665 Put Debit Spread for a debit of $300. SPX slid down after I opened this and my spread went fully ITM. I decided to lock-in a Risk-Free Put Debit Spread. I closed out my existing structure and opened a new 0 DTE Put Debit Spread at $7,650/$7,640 for a credit of $625. This locked-in a credit of $325 (625 - 300) and I had an additional upside up to $1K if SPX closed below $7,650. I gave up another $375 of profit for a free bonus up to $1K. I went ahead and let this expire. SPX settled at $7,641.16, which gave me an extra $884 (7,650 - 7,641.16) on this trade. All in all, I was able to walk away with a gain of 403% on my original $300 debit, netting $1,209.

  

• On Friday, I went with another 0 DTE trade in SPX. This time I went with a $15 wide Put Butterfly, pinning SPX at $7,660. I felt like more downside was possible and this was a cheap shot with a $240 debit. I let this expire as well. SPX settled at $7,674.37, which was just inside my $7,675 Long Put by $63. So, this ended up being a loser of $177 (240 - 63). Great week on 0 DTEs, I am not complaining!

  

• My Put Butterfly Hedge in SPX expired worthless. I could have closed this out for a small gain a few weeks ago, but it’s okay. This expired for a Max Loss of $525 on Friday morning.

  

• On Tuesday, I entered a 3 DTE Call Broken-Wing Butterfly in . I received a small credit of $70 at entry. My goal was to pin MU at $1,000. On Wednesday, I was able to lock-in a Risk-Free Fly for a debit of $43. This locked in a $27 credit with a very narrow additional profit tent up to $1,000 if MU was pinned between $990 and $1,010 on Friday. This did not pan out, and the remaining structure expired worthless for a $27 gain.

  

• On Tuesday, I also entered a 3 DTE Call Broken-Wing Butterfly in . I received a small credit of $85 at entry. My goal was to pin SNDK at $1,800. On Wednesday, I was able to lock-in a Risk-Free Fly for a debit of $45. This locked in a $40 credit with a very narrow additional profit tent up to $1,000 if SNDK was pinned between $1,790 and $1,810 on Friday. This also did not pan out, and the remaining structure expired worthless for a $40 gain.

  

• My Put Debit Spread Hedge in Nasdaq Futures (/NQU6) also expired worthless. Similar to my SPX hedge above, I could have taken a small win on this a few weeks ago, but I really thought we had a teeny bit more of downside. Oh well. These are small hedges and I have plenty of trades that made up for both of these. This expired for a Max Loss of $480 on Friday.

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $2,730.87
Opened Trades: 2
Managed Trades: 0
Closed Trades: 7
Open Positions: 18

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Opened

• On Friday, I entered a Long in Canadian Dollar/USD Futures (/6CU6) at 0.72150. This is a follow from Ilya Spivak at TastyLive. Currency futures are slower moving and this is a small position using only $900 of Buying Power. Looking for some additional upside here.

  • Bias: Bullish
    POP: 50%
    Max Profit: ∞
    Max Loss: ($72,150)
    BP Usage: $900

    

• had a negative reaction post earnings. I decided to go with a Super Bull here, playing for a reversal. This is a modified follow from Mike Butler at TastyLive. I am short the $450 Put and using that to finance a $500/$520 Call Debit Spread. I like the risk/reward and giving myself plenty of time for that Call Debit Spread to go fully ITM.

  • Bias: Bullish/Neutral
    POP: 69%
    Credit Rcv'd: $1,200
    Max Profit: $3,200
    Max Loss: ($43,800)
    BP Usage: $3,733

    

Managed

• No trades were managed this week.

Closed

• On Monday, my Long Call went ITM. I decided to close this one out. I closed it for a 36% gain, netting $137.

  

• continued to have a nice run last week and to start the week. On Monday, my GTC to close my Covered Short Strangle triggered. I closed this position out for 52% of Max Profit, netting $550.

  

• reported earnings after the close on Tuesday. Prior to the close, I decided to close out the Short Call in my Call Diagonal for a small debit of $40. This left me with a Long Call at the $100 Strike for a total debit of $780. The earnings reaction was quite positive. On Wednesday, I was able to close out of my $100 Strike Long Call for an 86% gain, netting $670.

  

• reported earnings before the open on Wednesday. Before the close on Tuesday, I went with a simple 3 DTE Call Debit Spread. NBIS had a large positive reaction to earnings as well. I was able to close this out for a 148% (about 99% of Max Profit), netting $590.

  

• My Short Put in Bond Futures (/ZBZ6) had taken some heat. Thursday brought us some upward momentum; I decided to take the win on this trade. I closed it out for 18% of Max Profit, netting $109.37.

  

• My Short Put in Euro/USD Futures (/6EU6) had also taken some heat. We saw some nice bullish momentum on Thursday. I decided to close this trade out as well. I closed it out for 26% of Max Profit, netting $212.50

  

• My Short Put in finally became profitable on Thursday. I decided to close this one out as well. Could I have made some more? Maybe, but I felt it was best to free up the Buying Power. This has been a long trade that I have managed for some time now. I closed this out for 12% of Max Profit, netting $462.

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $5,230
Opened Trades: 0
Managed Trades: 5
Closed Trades: 7
Open Positions: 22

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Opened

• No trades opened this week.

Managed

• reported earnings before the open on Tuesday. The response was somewhat muted. I went ahead and closed the Short Call in my Call Diagonal for a small debit of $15. This now leaves me with a $290 Call in the September 18th expiration for a total debit of $605.

  

• had a muted move post earnings on Wednesday. I closed the Short Call in my Call Diagonal for a small debit of $3. This leaves me with a $75 Call in the September 18th expiration for a total debit of $383.

  

• had a negative reaction post earnings. I went ahead and rolled just the Short Put side of my Covered Short Strangle. I rolled my Short Put down to the $115 Strike and out to the September 18th expiration for an additional credit of $75. This leaves me with a Covered Call in the August 21st expiration at the $200 Strike and the new Short Put. My net credit received is now $1,050.

  

• Bonds had a little bit of a rally on Wednesday, that was faded a bit on Thursday. On Thursday, I decided to roll my Short Put in Bond Futures (/ZBZ6) down and out. I rolled it down to the 107 Strike and out to the September 25th expiration. I did this for an additional credit of $187.50 or 12 ticks. This makes my net credit received now $609.38 (or 39 ticks). The Order Chains are a little messed up on this one.

  

• My Short Put was at 14 DTE on Friday, I decided to roll it down and out. I rolled it down to the $610 Strike and out to the September 18th expiration. I did this for a small credit of $70. This brings my net credit received to $4,000 and my break-even to $570.

  

Closed

• Monday brought us a nice green day. This triggered my GTC to close my Short Put in Nasdaq Futures (/NQU6) at 50% of Max Profit, netting $3,060. I opened this on July 13th, and this took some heat last week.

  

• Tuesday brought us another huge green day. I decided to close my Super Bull out in . I was able to close this for an additional credit of $235, due to the Call Debit Spread going fully ITM. I closed this for a 122% gain, netting $1,300.

  

• had a nice run up after the SPCX earnings on Wednesday. I was able to close my short put out for 71% of Max Profit, netting $1,060.

  

• On Thursday, I decided to close my Short Box Spread in the S&P 500 Index (SPX). My Buying Power was freed up and I no longer needed the extra cash. I closed this out for a $40 loss. This was to borrow money for about a week.

  

• During the last hour and a half of the market day on Thursday, I went with a 0 DTE Call Butterfly in the S&P 500 Index (SPX). This was a cheap shot to pin SPX around $7,730 by the End of the Day. This expired worthless for a loss of $150.

  

• On Friday, my Long Call on went In the Money. I decided to take the win on this one. I closed this out for a 42% gain, netting $240.

  

• I decided to participate in earnings on Wednesday. I went with a 2 DTE Call Butterfly, attempting to pin SNDK at $1,600. This did not pan out and resulted in the Max Loss of $240.

  

Open Options/Futures Positions

Note: The screenshots for the Open Profit/Loss from TastyTrade is slightly out of date since I closed some positions out yesterday and I put this together late.

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $3,140
Opened Trades: 4
Managed Trades: 2
Closed Trades: 10
Open Positions: 27

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Opened

• reported earnings on Tuesday morning. I have some shares I’ve been sitting on that I would like to sell. I decided to participate by opening a Call Ratio Spread on Monday. The extra Short Call is covered with my shares.

  • Bias: Omnidirectional
    POP: 86%
    Credit Rcv'd: $230
    Max Profit: $730
    Max Loss: (∞)
    BP Usage: $4,563

    

• Due to my assignment (see below), I was a little low on cash. I do plan to sell my GLD shares soon-ish via some Covered Calls or Call Ratio Spreads. However, in the meantime, I need a little cash. I decided to borrow some money via a Short Box Spread in the S&P 500 Index (SPX) in the October 16th expiration. This is cheaper than the margin interest I would accrue. With this Short Box Spread, I borrowed $29,720 for $280 (if held to expiration). This is the equivalent to borrowing money at the risk-free rate. For future reference, one can do a Long Box Spread as a way to earn interest at the risk-free rate.

  • Credit Rcv'd: $29,720
    Max Loss: ($280)

    

• reported earnings after the close on Thursday. Before the close on Thursday, I opened a Call Diagonal in the September and August expirations. I am playing for some bullish momentum and giving myself plenty of time to be right.

  • Bias: Bullish
    Debit Paid: $900
    Max Profit: $1,100-ish
    Max Loss: ($900)
    BP Usage: $908

    

• Due to ’s negative reaction post earnings, I wanted to get bullish. I went with a Super Bull in the October 16th expiration. I filled this for a credit with a built-in bonus if AAPL climbs past $340. This is a modified trade idea from Mike Butler at Tastylive.

  • Bias: Bullish/Neutral
    POP: 75%
    Credit Rcv'd: $415
    Max Profit: $1,415
    Max Loss: ($27,585)
    BP Usage: $2,432

    

Managed

• Due to my GLD Short Put being assigned early (see below), I decided to roll my Short Puts out to the September 18th expiration. I did this for a very small credit of $30 or $15 per contract. This brings my net credit to $1,730 or $865 per contract and my break-even to $61.35.

  

• My Call Diagonal for earnings did not work out immediately. I bought back the Short Call for a $10 debit on Friday, leaving me with a 9/18 $200 Long Call for a total debit of $910.

  

Closed

• Corn futures (/ZCU6) had some upward momentum to start the week. On Tuesday, I decided to close out my Short Put that I opened on May 14th. I had been tested on this for a bit, and I am happy for the win. I closed this out for 44% of Max Profit, netting $275.

  

• had a nice rebound after earnings. On Tuesday, I was able to close my Call Diagonal (opened on July 21st) for a 51% gain, netting $350.

  

• On Tuesday evening, I was assigned on my Short Put in . I will count my premium received as realized for the purposes of my tracking here. I have had this trade open since September 25th, 2025. And my net credit received is $2,356, which makes my adjusted basis $386.44 (410 - 23.56) on these shares. I now have 200 shares of GLD with an overall basis of $346.22. I will likely look to do another trade with them soon.

  

• reported earnings after the close on Tuesday. I decided to participate with a cheap shot via a short-term Call Calendar. I was centered around the $380 strikes playing for some bullish momentum. I was able to close this out for a 26% gain, netting a whopping $30.

  

• On Wednesday, I went with another 0DTE Put Broken-Wing Butterfly in the S&P 500 Index (SPX). I entered this after the rate decision was announced, but before Warsh took the stage. I was playing for a small chance of a reversal. We did reverse; however, it was well past where I wanted it to go. This closed fully ITM for a Max Loss of $425.

  

• reported earnings after the close on Tuesday. On Tuesday afternoon, I participated with a Put Ratio Spread. On Thursday, we saw a nice rebound from the lows on Wednesday. I was able to close this out for 66% of my credit received, netting $330.

  

• had a nice run on Thursday as well. I decided to close my Put Ratio Spread out for 50% of my credit received, netting $354.

  

• I participated in earnings on Thursday. I went with a 1 DTE Call Butterfly. I was playing for a bullish move, and this was a cheap shot. AAPL dropped post earnings, so I took Max Loss of $300 on this.

  

• On Friday, I decided to close out my SPX Put Broken-Wing Butterfly. I earned about 51% of my initial credit received, netting $310. Could I hold this for longer? Sure. I’d rather take the gains and re-enter on another down move and volatility pop.

  

• On Monday, I opened a 4 DTE Call Butterfly in . I was pinning MU at $1,000 by Friday. I went $25 wide, which is pretty narrow. This ended up expiring worthless at Max Loss of $140.

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $188
Opened Trades: 2
Managed Trades: 2
Closed Trades: 2
Open Positions: 28

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Opened

• On Tuesday, I opened a Call Diagonal in . This is a trade from for winning trivia. IBM has been beaten up and we’re playing for an eventual reversal. This is also an earnings trade, since they reported after the close on Wednesday. I am long the $225 Call in the September 18th expiration and short the $240 Call in the August 21st expiration. A cheap shot!

  • Bias: Bullish
    Debit Paid: $680
    Max Profit: $820-ish
    Max Loss: ($680)
    BP Usage: $680

    

• On Thursday, we had a volatility spike and a decent down move. I decided to open a Put Broken-Wing Butterfly in the S&P 500 Index (SPX). Playing for an eventual reversal but have a built-in profit tent if this down move is sustained.

  • Bias: Omnidirectional
    POP: 87%
    Credit Rcv'd: $610
    Max Profit: $10,610
    Max Loss: ($9,390)
    BP Usage: $5,876

    

Managed

• My 5 Longs in 1-Ounce Gold Futures (/1OZZ6) was set to expire in 6 days. On Thursday, I rolled out to the Z contract for a $58.50 debit per contract. This brings my basis up to $5,476.90 per contract. I am down about $6,810 on these, but I do believe Gold is due for a rebound. I’m willing to sit in these and lower the loss.

  

• My Short Put in Euro/USD Futures was at 14 Days to Expiration on Friday. I rolled this out to the September 4th expiration. It is currently ITM. I did this for an additional credit of $250 or .002 ticks. This makes my net credit received $825 (575 + 250) and my break-even 1.1484 (1.155 - .0066).

  

Closed

• I participated in earnings with a 1DTE Iron Fly on Thursday. My Fly was centered on the $100 Strikes and was $13 wide. INTC had a pretty muted move post earnings. I was able to closed this out Friday morning for 50% of Max Profit, netting $450.

  

• On Friday, I decided to do a 0DTE Put Broken-Wing Butterfly in the S&P 500 Index (SPX). This was just a cheap shot and a follow from Tom Preston at tastylive. SPX ended up moving down and I let this one expire. This ended up being a loser of $262, which was less than the Max Loss of $460.

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $14,579
Opened Trades: 1
Managed Trades: 0
Closed Trades: 3
Open Positions: 26

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Opened

• On Monday, I decided to open a Short Put in Nasdaq Futures (/NQU6). I am Short the $27,500 Strike in the August 21st expiration. I thought we were going to bounce harder on Monday, but I was wrong. I am okay sitting in this, if I need to.

  • Bias: Bullish/Neutral
    POP: 74%
    Credit Rcv'd: $6,100
    Max Profit: $6,100
    Max Loss: ($543,900)
    BP Usage: $22,828

    

Managed

• No positions required management this week.

Closed

• On Monday, I decided to close my Long Call in . This was a Long Call leftover from a Call Diagonal trade for earnings on June 11th. I closed it out for a small win of 12%, netting $110. ADBE has been a tough one and I felt it was best to just take the small gain and move on.

  

• On Thursday morning I closed my LEAPS in . I bought this back on May 15th, 2025. UNH had a nice positive earnings reaction. I felt it was in my best interest to take profits on this position as it was expiring Friday. I closed it for a 182% gain, netting $15,200. The Order Chains were not working for this. Below is a screenshot of my closing order and my purchase order from Robinhood (where I purchased this contract originally).

  

  

• My Long Call in from an old Call Diagonal expired worthless on Friday. I opened this on May 20th as an earnings trade. It expired for a Max Loss of $731.

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $331.25
Opened Trades: 4
Managed Trades: 2
Closed Trades: 1
Open Positions: 28

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Opened

• On Tuesday, I went long Bonds via Bond Futures (/ZBU6). I did this for a couple of reasons. 1) It is a contrarian trade against potential rate hikes. And 2) I saw an unusual options flow for Calls via TraderDaddy Pro, which reinforced my conviction.

  • Bias: Bullish/Neutral
    POP: 85%
    Credit Rcv'd: $422
    Max Profit: $422
    Max Loss: ($108,578)
    BP Usage: $2,921

    

• On Tuesday, I went long some with a Call Diagonal. A cheap shot playing for McDonald’s to continue climbing from its 52-Week lows.

  • Bias: Bullish
    Debit Paid: $590
    Max Profit: $910-ish
    Max Loss: ($590)
    BP Usage: $597

    

• I also entered a trade on on Tuesday. I went with a Put Ratio Spread. Playing for a reversal here, but a built-in profit tent if the downside continues. Another unusual options flow of Calls came in from TraderDaddy Pro for NBIS, which added to my conviction. I will likely look to lock-in a risk-free fly at a later date.

  • Bias: Omnidirectional
    POP: 79%
    Credit Rcv'd: $704
    Max Profit: $1,704
    Max Loss: ($11,796)
    BP Usage: $1,625

    

• On Friday, I entered into a Short Strangle in . I bought some shares a couple of weeks ago ($164.08 basis), so my Call side is covered. Just looking to gain some premium as this thing bounces around $145 to $155. I am short the $120 Put and $200 Call. I probably wouldn’t have sold the Call side on this without it being covered.

  • Bias: Bullish/Neutral
    POP: 69%
    Credit Rcv'd: $975
    Max Profit: $975
    Max Loss: (∞)
    BP Usage: $2,729

    

Managed

• Corn Futures (/ZCU6) have been moving up over the last few weeks. I rolled my Short Put out and down on Friday. I rolled out to the August 21st expiration and down to the $450 Strike for a small credit of $87.50. This makes my net credit received $625 (537.50 + 87.50) and my break-even $437.50 (450 - 12.50).

  

• has seen some upward movement, but has stalled a bit. On Friday, I decided to close the $130 Short Call in my Call Diagonal for a $10 debit. This leaves me with a $120 Long Call in the August 21st expiration for a net debit of $570 (560 + 10).

  

Closed

• Wheat Futures (/ZWU6) had a large move up on Friday. I was able to close my Short Put out for a win. I opened this trade on May 14th and have been managing it as it went ITM. I closed this out for 41% of Max Profit, netting $331.25.

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $3,066.50
Opened Trades: 3
Managed Trades: 0
Closed Trades: 6
Open Positions: 25

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Opened

• On Tuesday, I went long on with a Call Diagonal. Just a cheap shot here. and were both bullish when I talked with them on Monday. I am long the $75 Call in September and short the $85 Call in August.

  • Bias: Bullish
    Debit Paid: $380
    Max Profit: $620-ish
    Max Loss: ($380)
    BP Usage: $382

    

• had a decent drop on Wednesday due to the META news. I decided to also open a Call Diagonal on CRWV here. I am long the $100 Call in September and short the $125 Call in August.

  • Bias: Bullish
    Debit Paid: $740
    Max Profit: $1,760-ish
    Max Loss: ($740)
    BP Usage: $728

    

• I went long on some Micro Nasdaq Futures (/MNQU6) on Thursday. I bought 2 contracts with an average basis of $29,625.

  • Bias: Bullish
    POP: 50%
    Max Profit: ∞
    Max Loss: ($118,500)
    BP Usage: $7,596

    

Managed

• No positions were managed this week.

Closed

• On Monday, I closed my 2 Short Puts in the Micro S&P 500 Futures (/MESU6). They were set to expire on Tuesday and would have been worthless. However, I decided I would spend $25 ($12.50 per contract) to lock-in the win. I closed these out for 98% of Max Profit, netting $1,010 or $505 per contract.

  

• I also closed my Short Put in the Micro Nasdaq Futures (/MNQU6) on Monday. Similar logical to the /MES trade above, I spent about $20 to lock-in the win. I closed this out for 98% of Max Profit, netting $1,072.

  

• On Tuesday, I was noticing we were trading around $7,500 on the S&P 500 Index (SPX). I decided to do a 0DTE Iron Butterfly in the final 10 minutes of the day. I was $10 wide and short the $7,500 strikes. This was a cheap shot. I took a risk, went ahead and let this expire, and SPX closed at $7,499.36. I walked away with $561, which was 90% of Max Profit.

  

• I was talking with on Monday and he saw a large purchase of OTM Calls in via TraderDaddy (shout-out & ). So, on Tuesday, I decided to take a cheap shot with a Call Diagonal. PEP opened on Wednesday with a decent up move. I decided to close it out for a 30% gain, netting $110 overnight.

  

• On Wednesday, my Short Put in was assigned. For tracking purposes, I will count my $601 of premium as realized. I now own shares at a basis of $123.99 (130 - 6.01). I plan to sit on these for a bit.

  

• My Call Debit Spread in the Yen/USD Futures (/6JU6) expired worthless on Thursday. This was a cheap shot, which resulted in the Max Loss of $287.50.

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $1,324.50
Opened Trades: 2
Managed Trades: 7
Closed Trades: 4
Open Positions: 26

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Opened

• On Thursday, I opened a Put Debit Spread in Nasdaq Futures (/NQU6) as a hedge. Just putting on some bearish delta trades while volatility is cheap.

  • Bias: Bearish
    POP: 31%
    Debit Paid: $480
    Max Profit: $1,520
    Max Loss: ($480)
    BP Usage: $480

    

• I also opened a Put Butterfly in the S&P 500 Index (SPX). Same thought process as above.

  • Bias: Bearish
    POP: 13%
    Debit Paid: $525
    Max Profit: $9,475
    Max Loss: ($525)
    BP Usage: $494

    

Managed

• has been beaten down as of late. On Monday, I decided to leg out of my Short Straddle. I closed my $410 Call leg for a small debit of $170, which frees up my shares. This left me with an ITM $410 Short Put. Then on Thursday, I decided to roll that put out to the August 21st expiration for an additional $126 credit. I now have a net credit of $23.56 (24 - 1.70 + 1.26) and my break-even is $386.44 (410 - 23.56).

  

• My Long in the 100-Ounce Silver Futures was set to expire this week. I rolled out to the U contract (/SICU6) on Tuesday. I had to do this for a debit of 0.45. This now makes my basis 96. I am still down around $3.6K on this position, I was hoping for a rebound. It has not come. I may be looking to just take the loss on this. I’ll see.

• I also decided to roll my Short Straddle On Tuesday. I closed out of the position in the July 17th expiration. And rolled out to the August 21st expiration. I only rolled down the Short Put to the $70 Strike and added a second contract. I did this for a small debit of $50. This makes my total net credit received $1,700 (1,750 - 50) or $850 per contract. My break-even is now $61.50 per contract (70 - 8.50). Hoping for a rebound in Silver for this and my /SIC trade.

  

• I rolled my Short Put in out to the August 21st expiration on Tuesday. I received an additional credit of $101 for this. I am still short the $130 Strike. This makes my net credit received $601 (500 + 101) and my break-even $128.99 (130 - 6.01).

  

• On Thursday, I decided to roll my Short Put in down and out. I rolled down to the $625 Strike and out to the August 21st expiration. I did this for an additional credit of $625. This makes my net credit received $39.30 (33.05 + 6.25) and my break-even $585.70 (625 - 39.30).

  

• On Thursday, I rolled my Super Bull in out to the August 21st expiration. I rolled my Short Put down to the $370 Strike for a credit of $550. I then also rolled my Put Debit Spread down and out. For that portion, I am now long the $400 Strike Call and short the $410 Strike Call for a debit of $300. This makes my net credit on the trade $10.65 (8.15 + 5.50 - 3), my break-even $359.35 (370 - 10.65), and my max profit $2,065 (1,065 credit + 1,000 profit on the debit spread). I do feel AVGO will return to highs, eventually.

  

• On Friday, I rolled my Short Put in out to the August 21st expiration. I received an additional credit of $285 for this. This makes my net credit received $14.85 (12 + 2.85) and my break-even $200.15 (215 - 14.85). I’m leaving my Long Call at the $235 Strike in the July 17th expiration as is. Although that is unlikely to become profitable at this point.

  

Closed

• On Wednesday, I scalped some Micro Nasdaq Futures (/MNQU6). Just a quick $90 profit. Had to average down and took the exit.

  

• On Wednesday, I took profits on my Put Butterfly in the S&P 500 Index (SPX). I opened this on May 26th and closed it out for a 74% gain, netting $450.

  

• I did a short-term Call Expected Move Butterfly in on Wednesday. This was a cheap shot to participate in earnings. I was pinning MU at $1,150. I closed this out for a gain early Thursday morning. It was a 167% gain, netting $675 on a $450 debit. If I had waited until Friday, this would have been a HUGE win. However, I was unsure if MU would stay within my Butterly’s range.

  

• On Friday, I scalped some more Micro Nasdaq Futures (/MNQU6). I noticed we were approaching the session high and faded the move. Just a quick $109.50 profit. With both of the scalps this week, I could have made a lot more. Trading is hard!

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $4,000
Opened Trades: 2
Managed Trades: 2
Closed Trades: 6
Open Positions: 25

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Opened

• On Monday, I decided to go long on . Software has been beaten down as of late. This was a cheap Call Diagonal. I am long about 20Δ for a $560 debit.

  • Bias: Bullish
    Debit Paid: $560
    Max Profit: $440-ish
    Max Loss: ($560)
    BP Usage: $555

    

• On Tuesday, I opened 5 Longs on the Micro S&P 500 Futures (/MESU6). I have an average entry at $7,605.25. I am going to hold these for a bit.

  • Bias: Bullish
    POP: 50%
    Max Profit: ∞
    Max Loss: ($190,131)
    BP Usage: $18,808

Managed

• continues to drop and trade sideways. I decided to close out the Short Call in my Call Diagonal. This cost me a small debit of $41. I am now Long the $240 Call in the August 21st expiration for a total debit of $900 (8.59 + 0.41).

  

• On Thursday I rolled my Short Put in EUR/USD Futures (/6EU6). I rolled down to the 1.155 Strike and out to the August 7th expiration. I did this for a small credit of $100. This makes my net credit received now $575 (475 + 100) and my break-even 1.1504 (1.155 - 0.0038 - 0.0008).

  

Closed

• My GTC to close my Short Put in Nasdaq Futures (/NQU6) filled late Sunday night. I opened this on June 5th. My GTC was for 50% of Max Profit, netting $2,620.

  

• My GTC to close my Short Put in S&P 500 Futures (/ESU6) filled early Monday morning. I opened this on June 5th. My GTC was for 50% of Max Profit, netting $1,900.

  

• I closed my Call Credit Spread hedge in Nasdaq Futures (/NQM6) on Monday. This was opened ITM on May 1st, was still deep ITM, and set to expire Thursday morning. I closed it out for Max Loss, which was $530.

  

• I also closed my Call Credit Spread hedge in the S&P 500 Index (SPX) on Monday. This was opened ITM on May 1st, was still deep ITM, and set to expire Thursday morning. I closed it out for close to Max Loss, which was $475.

  

• On Wednesday, my Short Put was assigned. I now own 100 shares at an average cost basis of $100.15 (105 - 4.85). I plan to sit on the shares for a bit. I will count the premium earned of $485 as realized for my tracking here.

  

• I allowed my LEAPS to be exercised on Thursday. I bought this on May 8th, 2025. It has been a great trade, and I would like to continue to get exposure to GOOGL. I think they will be one to watch. On Thursday, this was quoted at a 560.7% gain. Below is my purchase from Robinhood (where I purchased this originally) and the quoted gain as of Thursday. My cost basis on these shares is $170.30 (135 + 35.30). I won’t count any gain for my tracking here since it remains unrealized.

  

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $1,010
Opened Trades: 1
Managed Trades: 2
Closed Trades: 2
Open Positions: 29

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Opened

• reported earnings after the close on Thursday. This thing has been beaten down beyond belief. My friend says it’s undervalued. So, on Thursday, I went a little contrarian here with a Call Diagonal in the July 17th and August 21st expiration. A cheap shot with some duration!

  • Bias: Bullish
    Debit Paid: $859
    Max Profit: $1,141-ish
    Max Loss: ($859)
    BP Usage: $863

    

Managed

• Corn futures prices (/ZCN6) had a large down move the last few days. Monday brought us a slight green day, so I rolled my Short Put out to July 24th and up to the $455 Strike. This brought in an additional credit of $125. Making my net credit now $537.50 (412.50 + 125) and my break-even $444.25 (455 - 8.25 - 2.50). Although I moved my strike up by $5, this is actually a slight roll down due to the contango in the Corn Futures Forward Curve.

  

• Wheat futures prices (/ZWN6) also had a large down move the last few days. I rolled my Short Put out to July 24th and up to the $465 Strike on Monday. This brought in an additional credit of $150. Making my net credit now $806.25 (656.25 + 150) and my break-even $608.875 (625 - 13.125 - 3). Similar to Corn, although I moved my strike up by $5, this is actually a slight roll down due to the contango in the Wheat Futures Forward Curve.

  

Closed

• Early Friday morning, my GTC to close my Short Put in the Russell 2000 Futures (/RTYU6) filled. I opened this on June 5th and closed it out for 50% of Max Profit, netting $900.

  

• had some bullish momentum during the week. I took the opportunity to close my Short Put on Friday. I opened this trade as a Short Strangle on April 23rd for earnings. I had been battling ITM Short Calls and continued to manage. I am happy to lock-in a gain of $110, which was about 12% of Max Profit. My original profit goal was about $200, but this was a trade that I had to be defensive in. Happy to get the win (although small)!

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $2,940
Opened Trades: 6
Managed Trades: 3
Closed Trades: 4
Open Positions: 30

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Opened

• With the Pattern Day Trader Rule being removed on June 4th, I decided to get long via a LEAPS on Wednesday. I bought the $250 Call out in January 2028, which was about a 70Δ at entry.

  • Bias: Bullish
    POP: 34%
    Debit Paid: $7,470
    Max Profit: ∞
    Max Loss: ($7,470)
    BP Usage: $3,767

    

• I also opened a LEAPS in on Wednesday. I bought the $220 Call out in January 2028, which was about a 70Δ at entry. CBOE and CME are near lows, and I feel like the removal of the PDT rule is bullish for both of these firms.

  • Bias: Bullish
    POP: 37%
    Debit Paid: $5,450
    Max Profit: ∞
    Max Loss: ($5,450)
    BP Usage: $3,458

    

• On Thursday, had an aggressive negative earnings reaction. I decided to enter a Super Bull in the July 17th expiration. I am Short the $380 Put, which finances a Call Debit Spread for a credit of $815. I believe this was an overreaction and AVGO should see some upward movement. I am also covering the cost of my bullish earnings trade that did not pan out (see in Closed below).

  • Bias: Bullish/Neutral
    POP: 75%
    Credit Rcv'd: $815
    Max Profit: $1,815
    Max Loss: ($37,185)
    BP Usage: $2,954

    

• Friday brought us a meaty down day. I believe this is a short-term pull back. I went ahead and sold a Short Put in the S&P 500 Futures (/ESU6). I am short the $7,250 strike in the July 17th expiration, which was a 25Δ at entry.

  • Bias: Bullish/Neutral
    POP: 77%
    Credit Rcv'd: $3,750
    Max Profit: $3,750
    Max Loss: ($358,750)
    BP Usage: $16,073

    

• I also opened a Short Put in the Nasdaq Futures (/NQU6). I am short the $27,000 strike in the July 17th expiration, which was a 16Δ at entry.

  • Bias: Bullish/Neutral
    POP: 85%
    Credit Rcv'd: $5,220
    Max Profit: $5,220
    Max Loss: ($534,780)
    BP Usage: $17,041

    

• Additionally, I sold another Short Put in the Russell 2000 Futures (/RTYU6). I am short the $2,700 strike in the July 17th expiration, which was a 25Δ at entry.

  • Bias: Bullish/Neutral
    POP: 79%
    Credit Rcv'd: $1,800
    Max Profit: $1,800
    Max Loss: ($133,200)
    BP Usage: $6,129

    

Managed

• has been on a continued tear. I was getting close to my break-even on the Short Straddle. On Wednesday, I decided to close out the existing Straddle and roll only the Short Put up and out to July 17th. I am now short the $650 Put. I paid a debit of $1,345 for this adjustment. This makes my net credit $3,305 (44.50 - 13.45) and my break-even $616.95 (650 - 33.05). I’m tired of fighting the Short Call and decided to just lean long here. I wish I had waited until Thursday or Friday to adjust this position. Oh well, hindsight is 20/20.

  

• had some downward movement on Monday and Tuesday. I decided to leg out of my Short Call in my Short Straddle on Tuesday. It cost me a $400 debit for this adjustment. Then on Wednesday, INTC had some upward movement, so I rolled my Short Put out to July 17th and down to the $115 strike for a $140 credit. This makes my net credit now $900 (11.60 - 4 + 1.40) and my break-even $106 (115 - 9). I am now leaning long with just the $115 Short Put.

  

• As I said above, Friday was a large down day. I took this opportunity to leg out of my Call Diagonal. I closed the June 18th $250 Short Call for a small $16 debit. Leaving me with a Long Call at the $235 strike out in July 17th for a net debit of $731 (7.15 + 0.16).

  

Closed

• My Short Strangle in Crude Oil Futures (/CLN6) finally hit my profit target on Monday. I have been sitting in this trade since February 24th. In that time frame, I (at times) had an ITM Short Call and have been able to manage it all during this crazy ride. I stayed pretty mechanical and patient here. I was able to close this out at 56% of Max Profit, netting $2,550. This trade was marked at a decent loss at one point. I took some risk and had a strong feeling that /CL would cool off eventually. I was able to learn a lot during this trade.

  

• On Tuesday morning, my GTC for my Short Put filled. I opened this on May 7th as an earnings trade. I closed this out at 52% of Max Profit, netting $500.

  

• On Tuesday, I opened a Call Calendar in Live Cattle Futures (/LEQ6). This was a trade idea from Thomas Westwater and Mike Butler at Tastylive. I was playing for Live Cattle to rise towards $250. On Thursday, it had risen to $242-ish. so I was able to close this out for a 54% gain, netting $250 in a couple of days.

  

• I opened a short-term Expected Move Call Butterfly in for earnings. This did not pan out, resulting in a $360 loss.

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

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Details

Before we dig into this strategy, I do want to mention that not ALL brokers support options on Futures. Personally, I really like options on Futures. They provide some great flexibility, and this strategy is a perfect example of this.

In order to enter this trade, a trader would buy a Long contract on a Futures product and then sell a Short Call on that same contract. We MUST make sure the options contract is in the same expiration cycle as the Futures contract. For example, if a trader buys a Micro S&P 500 Future in the U contract, they then MUST sell a Short Call in the U contract as well (see the image below for an example of what I mean).

The strike of the Short Call could be Out the Money (OTM), At the Money (ATM) or In the Money (ITM). It’s all depending on the trader’s risk tolerance, how aggressive they want to be with their assumption, and how much upside they want built into the trade.

Traditionally, a Futures Covered Call is structured by selling an OTM or ATM strike. However, one could place the Short strike at whatever price they want. I usually structure this trade with my strike OTM. I aim for somewhere around the 15 to 30Δ (usually landing around the 20-ishΔ). I also use the expected move to assist which strike I select. For the purposes of this post, I am going to focus on structuring this trade with the strike OTM. Below is an example Futures Covered Call profit and loss graph in the Micro S&P 500 Futures (/MES).

The image below shows how this trade would be structured in an options table.

With this trade, we are assuming the price of the underlying Future will go to or past our strike and there will be a volatility contraction. In the above images, I am selling the $7,900 Call (/MESU6 was trading around $7,682 when I put this together). This was around a 25Δ when I constructed the trade.

We want to enter this trade when the Implied Volatility (IV) of /MES is high (/MES’s IV Rank was around 33). This way we can benefit from an IV contraction. Ideally, we also want the price of /MES to stay above $7,682 (our basis) through expiration.

Breaking it Down

When entering this trade, our bias is Bullish. We truly want /MES to breach our strike. We then walk away with the credit received at entry and appreciation on the Futures contract. If this doesn’t happen, every Short Call that expires OTM continually reduces our cost basis on the Futures contract. And the premium received from the Short Call helps to negate the carry cost of holding a Futures contract. Our max loss is the Futures contract basis minus the credit we received on our Short Call. The Buying Power held is determined by your broker. If a trader’s account has Portfolio Margin, it will be a lower amount than an account with Regulation T-Margin.

When deciding what strike to sell my Short Call at, I use delta (as I described above). I will also look at the risk/reward. I like to keep my max profit in mind. Maybe going for a slightly lower delta for the additional upside. However, I would not go much lower than a 15Δ. You just aren’t (usually) paid enough for the Short Call.

In this example, our max profit is our credit received of $253.75 (50.75 * 5) plus the appreciation of $1,090 on our Long /MES contract ((7,900 - 7,682) * 5). This makes our max profit $1,343 in total (253.75 + 1,090). Our max loss is our basis on the Long /MES contract minus our credit received ($38,156.25 in the above example [(7,682 * 5) - 253.75]).

A quick note - all of our quoted values have to be multiplied by 5 (not 100) because /MES is $1.25 per tick and there are 4 ticks per point (1.25 * 4). Unlike stocks, options on Futures are quoted per tick value (which are NOT standardized).

How do we profit on this trade? We hit max profit if /MES goes beyond $7,900 by expiration. We also profit if /MES stays above our break-even of $7,631.25 (7,682 - 50.75) by expiration. Even if /MES goes below out break-even, that Short Call could be closed for a debit lower than the credit we received at entry or allowed to expire worthless. This would then allow us to reduce our basis on the Long /MES contract and sell another Short Call, if we wanted.

There are always tradeoffs with all positions. By turning this into a Covered Call, we cap our max profit but reduce our basis on the /MES Long. We can place our strike at a higher delta. This increases our credit received but reduces our potential appreciation. And vice versa with a strike at a lower delta. This trade is somewhat flexible and easier to roll; however, it will price smaller accounts out of certain products. And we give up additional upside above the strike of $7,900 in this example.

As I stated above, options on Futures are NOT standardized. This goes for which products and expirations are American and European style options as well. It varies across all of the products. I have this PDF from CME group which breaks this all down for anyone interested. In terms of /ES, /MES, /NQ and /MNQ, all of the options are European style. EXCEPT for the Quarterly expirations, which are American style. Regardless, assuming you are assigned early on the Short Call in this trade, the broker would then just close your Long /MES contract, resulting in max profit. I would recommend looking at the PDF I linked above to just be aware of what you are trading.

Conclusion

The great thing about this strategy is it allows us to get paid to (potentially) sell our Long /MES contract at a price we like. And all contracts that expire OTM or are closed early, effectively lower our basis on the contract. We also profit under several outcomes. This trade profits if /MES moves up, sideways and even down a little. This is the beauty of selling premium.

Additionally, selling that Short Call helps to mitigate the carry cost of holding a Futures contract. Futures contracts are Mark-to-Market, so the daily increase/decrease of the contract affects your daily cash balance. And Futures and options on Futures, affect your settled cash balance (unlike regular options). For example, if one had $20K in cash held and this trade required $10K of Buying Power, their settled cash balance would be $10K (20K - 10K).

This trade allows for flexibility. Want to increase the max profit? Place the strike at a lower delta. Want to increase your credit received on the Short Call? Place the strike at a higher delta. Did the price of /MES not quite rise to where you wanted? Close out the Short Call and sell another one to continually reduce your basis in the Futures contract.

With a Futures Covered Call, I do not have a stop loss. It’s okay if a trader does want to utilize one. Personally, I do not see the benefit. This is why size at entry is important. If a Long /MES contract uses very little Buying Power, you can sit in the trade and wait for a rebound. All of that being said, nothing wrong with having an exit in mind to cap your losses on this trade.

I like to sell the Short Call in this trade around 30 to 60 Days to Expiration (DTE). A trader can be more aggressive with this though. A trader could look to open these weekly, if they wanted. It’s all very flexible. I look to roll my positions around 21 to 14 DTE. Ideally, if I can roll up a strike AND out in time for a credit, I will do that. I make a decision on whether to close, roll or let it ride at this time.

This trade is a little different than other Short premium strategies. We are somewhat naked with holding that Long Futures contract, which makes this a little more nuanced. If a trader sees the price of the Futures contract begin to rise to or surpass their Short Call strike, it’s probably best to close the entire trade and take the profits. If the Long Futures contract moves sideways or decreases, it may be best to close that Short Call out at around 50 to 75% of Max Profit. Then one can just reenter another Short Call at a later date. If this happens, it is not recommended to hold on for more profit. This is because your max profit in the trade remains the same and your risk in the trade has actually increased (max loss AND profit gained). In my opinion, it is not worth it. But it truly comes down to a trader’s own risk tolerance.

Futures are confusing. I know they are. It is a barrier to entry. And I have heard many traders say to never trade Futures with your own money. This makes them seem scary to many traders. I completely disagree with this. And this is why size at entry is so important. If a trader is sized very small, they can begin to trade these products with very low risk. This allows a trader to understand the mechanics of Futures and options on Futures without blowing up their account. They are powerful tools. I have learned a lot by just trading very small in Futures products. This is similar to trading options on stocks. The first time I began trading those, it seemed like a lot of information to take in. But once I started trading them it all began to click.

The Futures Covered Call is a fun trade to keep in a trader’s toolbox. If you have questions, need further clarity, or have general feedback for me. Please comment below, I’d love to hear from you!

Closed Profit/(Loss): $440
Opened Trades: 2
Managed Trades: 3
Closed Trades: 3
Open Positions: 26

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Opened

• We have had continued upward momentum in the market (9 consecutive weeks now). Although I do believe this continues, it felt like a good time to put on some bearish delta. On Tuesday, I opened a cheap Put Butterfly in the S&P 500 Index (SPX). Bearish delta trades are quite cheap right now and it is a good idea to put these on when we are continuing to hit all-time highs.

  • Bias: Bearish
    POP: 13%
    Debit Paid: $605
    Max Profit: $9,395
    Max Loss: ($605)
    BP Usage: $605

    

• On Thursday, I opened a Short Put in the Euro/USD Futures (/6EU6). This is playing into a weakening US Dollar or, at least, some sideways movement. I went with the 1.16 strike in the July 2nd expiration, which was a 30Δ at entry. This is another trade idea from Chris Vecchio and Thomas Westwater at TastyLive. Honestly, I am still trying to understand currency futures. This is pretty low risk way to get that experience.

  • Bias: Bullish/Neutral
    POP: 80%
    Credit Rcv'd: $475
    Max Profit: $475
    Max Loss: ($144,525)
    BP Usage: $1,991

    

Managed

• On Wednesday, my Short Put in had close to $0 of extrinsic value remaining. This makes my risk of early assignment higher. I decided to roll out to the July 17th expiration for a small credit of $35. This makes my net credit received now $485 (450 + 35) and my break-even $100.15 (105 - 4.85). I would be okay with assignment here, worst case.

  

• On Thursday, I rolled my Short Straddle in out to the July 17th expiration. I collected a small credit of $125 for this roll. This makes my net credit received now $1,750 (16.25 + 1.25) and my break-evens $67.50 and $102.50 (85 ± 17.50).

  

• On Friday, I rolled my Covered Short Straddle in out to the July 17th expiration and up to the 410 Strike. I received an additional credit of $425 for this roll. This makes my net credit received now $2,400 (19.75 + 4.25) and my break-evens are $386 and $434 (410 ± 24).

  

Closed

• My Call Debit Spread in Natural Gas Futures (/NGM6) expired worthless on Tuesday, resulting in a $350 loss. I took a cheap shot; it didn’t pan out. I may do something in /NG again, I do believe /NG will rise.

  

• On Thursday, my GTC to close my Short Put filled. I opened this on May 4th as an earnings trade. I closed this out at 50% of Max Profit, netting $315.

  

• had a nice run up to end the week due to the launch of the Trump accounts. I was able to close my Long Call on Friday for a 77% gain, netting $475. I opened this trade as a Call Diagonal on April 28th.

  

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Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

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Details

A Long Put Diagonal is bought with the assumption that the stock will go down in the future. The typical construction involves buying a Long Put in a longer dated expiration and selling a Short Put in a shorter dated expiration.

I like Diagonal Spreads as a way to express a bearish (constructed with Puts) or bullish (constructed with Calls) assumption. The great thing about this spread is we use the extrinsic value of the sold Put to offset the cost of the bought Put. This can be a great earnings trade since the nearer term Short Put will have a higher Implied Volatility (IV) compared to the IV of the Long Put. You can see what I mean in the image below for . The IV Index (IVx) is slightly higher in the near term; a better example was with in my post last week (link above).

Below is an example Put Diagonal profit and loss graph in IWM.

The image below shows how this trade would be structured in an options table.

With this trade, we are assuming the price of the stock will go down. A Put Diagonal is a defined risk trade; our max loss is the debit paid at entry. In the above images, I am buying the $285 Put in the July 17th expiration and selling the $275 Put in the June 18th expiration (IWM was trading at $289.49 when I put this together). This trade would be routed for around a $539 debit ((7.69 - 2.30) * 100).

Ideally, we want to enter this trade when the IV of the stock is higher in the near term. This is why it can be a great earnings trade. It allows a trader to benefit from an IV crush in the Short Put. This can also be a great trade to put on for a bearish delta hedge. When entering this example trade, we want the price of IWM to stay below $285 through expiration (ideally).

Breaking it Down

In order to profit on this trade, we MUST be directionally correct. If the price of IWM rises, we will lose money. However, all we can lose is the $539 we paid to enter the trade. Additionally, we give ourselves time to be right by buying that Long Put in a later expiration date.

With a Put Diagonal, our max profit is roughly the width of the spread minus our debit paid. In this above example, our max profit is roughly $461 ((285 - 275 - 5.39) * 100) and our max loss is our debit paid of $539. I say that the max profit is roughly the width of the spread. This is because the extrinsic value of the longer dated Long Put can allow us to profit at a slightly larger amount of the spread width.

How do we profit on this trade? We profit if IWM stays below our break-even of $279.61 (285 - 5.39) by expiration. If the stock price cooperates, we can sell to close the spread for a credit greater than the debit we paid at entry. We lose if IWM closes above our break-even of $279.61 by expiration.

When constructing this trade, I like to buy the Long Put that is about a 40 to 50Δ and around 45 to 90 Days to Expiration (DTE). I then like to sell the Short Put that is about a 20 to 25Δ and around 30 DTE or less. Additionally, I like to pay a debit that is roughly one half the width of the spread. In this example, that would be $500 ((285 - 275) * 0.50 * 100). A trader can spend up to 75% of the width of the spread, but it is not recommended to go much higher. It just makes the risk/reward much less attractive.

There are always tradeoffs with all positions. With a Put Diagonal, we are reducing our debit paid by selling that Short Put. But it does reduce our max profit as well. Further, the structure of this trade can be flexible. A trader can experiment with different expirations and deltas. One additional benefit is we give ourselves time to be right here. This way, if the stock begins to rise, we can buy that Short Put back. Which then leaves us with a cheaper Long Put if the stock does rebound.

Conclusion

The great thing about a defined risk trade is we know our max loss at entry. If sized appropriately, we can sit in the trade. A Put Diagonal is a great way to get about 20 Short deltas of exposure for a small debit (40 Short Δ minus 20 Long Δ). However, we profit under only one condition. We MUST have IWM go down before expiration to make money on a Put Diagonal.

This trade allows for flexibility. Want to decrease the debit paid? Buy the Long Put in a shorter DTE range and at a lower delta. Want to be a little more aggressive? Place the strike of the Long Put at a higher delta. Want to give yourself more time? Buy a further dated expiration. Didn’t get the downside move quickly? Allow for that Short Put to expire worthless or buy it back for cheap. Then sell another Short Put in a new expiration. This will continually decrease the debit paid on the Diagonal.

With a Put Diagonal, I do not have a stop loss. It’s okay if a trader wants to utilize one. Personally, I do not see the benefit. This is why size at entry is so important. My debit paid at entry is my stop loss. This way I can be patient and wait for the downside move I expected when I entered the trade.

When to take profits on a Put Diagonal is up to a trader’s own approach. I usually look to take profits once the stock gets close to or below my Short Put strike. We need to be aware of extrinsic value decay for the Long Put. The longer we wait and closer to expiration we get, the quicker the premium decays. Additionally, we don’t want to wait for the stock price to get below the Short Put too much. This is because the profit curve begins to flatten on the trade. Causing us to be stuck with a profit around the width of the spread.

Have questions on The Put Diagonal or general feedback for me? Please comment below, I’d love to hear from you!

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

Closed Profit/(Loss): $1,773.37
Opened Trades: 4
Managed Trades: 3
Closed Trades: 7
Open Positions: 27

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Opened

• On Wednesday, I decided to go long Japanese Yen Futures (/6JU6). I went with a Call Debit Spread. Risking 1 to make 3 (roughly). This is an idea from Chris Vecchio at TastyLive. Just a small debit with the bet that Yen Futures will rise.

  • Bias: Bullish
    POP: 41%
    Debit Paid: $288
    Max Profit: $963
    Max Loss: ($288)
    BP Usage: $281

    

• As we all know, was reporting earnings after the close on Wednesday. I decided to go with a Call Diagonal here. This trade was my example to illustrate The Call Diagonal spread, which I covered in a post on Wednesday. I’m playing for a bullish move (eventually).

  • Bias: Bullish
    Debit Paid: $715
    Max Profit: $785 (roughly)
    Max Loss: ($715)
    BP Usage: $710

    

• was set to report earnings on Thursday morning. I participated by selling a simple Short Put on Wednesday. I went right At the Money with the $130 strike, which was a 44Δ at entry.

  • Bias: Bullish/Neutral
    POP: 65%
    Credit Rcv'd: $500
    Max Profit: $500
    Max Loss: ($12,500)
    BP Usage: $2,316

    

• I decided to sell an At the Money Short Put in on Friday as well. I went with the $215 strike, which was a 47Δ at entry. I am happy to own some NVDA. Plus, this financed the Call Diagonal I opened on Wednesday.

  • Bias: Bullish/Neutral
    POP: 65%
    Credit Rcv'd: $1,200
    Max Profit: $1,200
    Max Loss: ($20,300)
    BP Usage: $1,931

    

Managed

• My 5 Long Contracts in 1 Ounce Gold Futures (/1OZM6) was set to expire in 7 Days on Wednesday. I decided to roll this out to the Q Contract for a debit of 34 points. This now makes my average entry $5,418.40 per contract. This is a decent loser of $4,375.75 ((5,418.40 - 4,543.25) * 5). I do feel Gold will move up eventually.

  

• We have had continued upward momentum in the market overall. I took the opportunity to roll my Short Put in Micro Nasdaq Futures (/MNQU6) up from the $27,500 strike to the $28,750 strike on Friday. This moves me up to the 27Δ. I received an additional credit of $402 for this roll making my net credit received now $1,092. In futures terms, I have a credit of 546 points. This makes my break-even $28,204 (28,750 - 546).

  

• I also rolled my 2 Short Put contracts in Micro S&P 500 Futures (/MESU6) up from the $7,200 strike to the $7,350 strike on Friday. This moves me up to the 28Δ. I received an additional credit of $245 ($122.50 per contract) for this roll making my net credit received now $1,035 ($517.50 per contract). In futures terms, I have a credit per contract of 103.50 points. This makes my break-even $7,246.50 (7,350 - 103.5).

  

Closed

• On Wednesday morning, my GTC to close my Short Put filled. I opened this on May 11th. My GTC was set for 50% of Max Profit, netting $440.

  

• On Tuesday, I decided to sell a Short Put in the Russell 2000 Futures (/RTYU6). I was short the $2,675 strike, which was a 32Δ at entry. Wednesday brought a market-wide rebound. I decided to take this position off at 32% of Max Profit, netting $750 overnight.

  

• I also decided to take profits on my Short Put in Bond Futures (/ZBU6) on Wednesday. I opened this trade on May 15th. I was able to close this for 20% of Max profit, netting $109.37.

  

• Due to the news from the government investment in quantum, I was able to close my Short Put in on Friday. I opened these on May 11th. I closed these out at 55% of Max Profit, netting $254 in total ($127 per contract). My Order Chains were not displaying correctly. Below is the open and closing transactions.

  

• I was able to close my Short Puts in on Friday as well. I also opened these on May 11th. I closed these out at 50% of Max Profit, netting $260 in total ($130 per contract). Similar to QBTS, my Order Chains were not displaying correctly. Below is the open and closing transactions.

  

• had a large down day on Monday. I decided to sell some Puts. I was short the $12.50 Strike in the June 18th expiration, which was a 28Δ at entry. I opened 4 contracts. Shout out to for bringing this stock to my attention. On Friday, my GTC to close these out at 50% of Max Profit triggered, netting $160 in total ($40 per contract).

  

• I had a lotto on . I went a little too aggressive with my time frame. This expired worthless, resulting in a $200 loss.

  

Open Options/Futures Positions

Disclaimer: Options and futures involve substantial risk and are not suitable for all investors. This content is for educational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Always consult a qualified financial professional before making investment decisions.

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Details

A Long Call Diagonal is bought with the assumption that the stock will go up in the future. The typical construction involves buying a Long Call in a longer dated expiration and selling a Short Call in a shorter dated expiration.

I like Diagonal Spreads as a way to express a bullish (constructed with Calls) or bearish (constructed with Puts) assumption. I will be discussing The Put Diagonal next week, but it is very similar to The Call Diagonal. The great thing about this spread is we use the extrinsic value of the sold Call to offset the cost of the bought Call. This is a great earnings trade since the nearer term Short Call will have a higher Implied Volatility (IV) compared to the IV of the Long Call. You can see what I mean in the image below for . The IV Index (IVx) is higher in the near term because earnings are announced after close today.

Below is an example Call Diagonal profit and loss graph in NVDA. This is a trade I may enter later today!

The image below shows how this trade would be structured in an options table.

With this trade, we are assuming the price of the stock will go up. A Call Diagonal is a defined risk trade; our max loss is the debit paid at entry. In the above images, I am buying the $235 Call in the July 17th expiration and selling the $250 Call in the June 18th expiration (NVDA was trading around $224.53 when I put this together). This trade would be routed for around a $765 debit ((11.15 - 3.50) * 100).

Ideally, we want to enter this trade when the IV of the stock is higher in the near term. This is why it is a great earnings trade. This way we can benefit from an IV crush in the Short Call. We also want the price of NVDA to stay above $235 through expiration (ideally).

Breaking it Down

In order to profit on this trade, we MUST be directionally correct. If the price of NVDA drops, we will lose money. However, all we can lose is the $765 we paid to enter the trade. Additionally, we give ourselves time to be right by buying that Long Call in a later expiration date.

With a Call Diagonal, our max profit is roughly the width of the spread minus our debit paid. In this above example, our max profit is roughly $735 (((250 - 235) - 7.65) * 100) and our max loss is our debit paid of $765. I say that the max profit is roughly the width of the spread. This is because the extrinsic value of the longer dated Long Call can allow us to profit at a slightly larger amount of the spread width.

How do we profit on this trade? We profit if NVDA stays above our break-even of $242.65 (235 + 7.65) by expiration. If the stock price cooperates, we can sell to close the spread for a credit greater than the debit we paid at entry. We lose if NVDA closes below our break-even of $242.65 by expiration.

When constructing this trade, I like to buy the Long Call that is about a 40 to 50Δ and around 45 to 90 Days to Expiration (DTE). I then like to sell the Short Call that is about a 20 to 25Δ and around 30 DTE or less. Additionally, I like to pay a debit that is roughly one half the width of the spread. In this example, that would be $750 ((250 - 235) * 0.50 * 100). A trader can spend up to 75% of the width of the spread, but it is not recommended to go much higher. It just makes the risk/reward much less attractive.

There are always tradeoffs with all positions. With a Call Diagonal, we are reducing our debit paid by selling that Short Call. But it does reduce our max profit as well. Further, the structure of this trade can be flexible. A trader can experiment with different expirations and deltas. One additional benefit is we give ourselves time to be right here. This way, if the stock begins to drop, we can buy that Short Call back. Which then leaves us with a cheaper Long Call if the stock does rebound.

Conclusion

The great thing about a defined risk trade is we know our max loss at entry. If sized appropriately, we can sit in the trade. A Call Diagonal is a great way to get about 20 deltas of upside exposure for a small debit (40 Long Δ minus 20 Short Δ). However, we profit under only one condition. We MUST have NVDA go up before expiration to make money on a Call Diagonal.

This trade allows for flexibility. Want to decrease the debit paid? Buy the Long Call in a shorter DTE range and at a lower delta. Want to be a little more aggressive? Place the strike of the Long Call at a higher delta. Want to give yourself more time? Buy a further dated expiration. Didn’t get the upside move quickly? Allow for that Short Call to expire worthless or buy it back for cheap. Then sell another Short Call in a new expiration. This will continually decrease the debit paid on the Diagonal.

With a Call Diagonal, I do not have a stop loss. It’s okay if a trader wants to utilize one. Personally, I do not see the benefit. This is why size at entry is so important. My debit paid at entry is my stop loss. This way I can be patient and wait for the upside move I expected when I entered the trade.

When to take profits on a Call Diagonal is up to a trader’s own approach. I usually look to take profits once the stock gets close to or beyond my Short Call strike. We need to be aware of extrinsic value decay for the Long Call. The longer we wait and closer to expiration we get, the quicker the premium decays. Additionally, we don’t want to wait for the stock price to get past the Short Call too much. This is because the profit curve begins to flatten on the trade. Causing us to be stuck with a profit around the width of the spread.

Have questions on The Call Diagonal or general feedback for me? Please comment below, I’d love to hear from you!

Closed Profit/(Loss): $490
Opened Trades: 9
Managed Trades: 0
Closed Trades: 8
Open Positions: 28

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Opened

• had earnings after the close on Monday. I went with another Short Put here. I am Short the $75 strike, which was a 32Δ at entry.

  • Bias: Bullish/Neutral
    POP: 62%
    Credit Rcv'd: $880
    Max Profit: $880
    Max Loss: ($6,620)
    BP Usage: $3,917

    

• also had earnings after the close on Monday. I sold a Short Put here too. I went in with two contracts at the $20 strike, which was a 40Δ.

  • Bias: Bullish/Neutral
    POP: 62%
    Credit Rcv'd: $520
    Max Profit: $520
    Max Loss: ($3,480)
    BP Usage: $737

    

• had earnings before open on Tuesday. I sold a Short Put here too. I opened two contracts at the $22 Strike, which was a 33Δ.

  • Bias: Bullish/Neutral
    POP: 63%
    Credit Rcv'd: $460
    Max Profit: $460
    Max Loss: ($3,940)
    BP Usage: $583

    

• As many of you know has been on a wild tear. On Wednesday I decided to do a Call Butterfly lotto similar to what I did in Micron last week. Super small debit of $200. I am trying to pin SNDK between $1,900 and $2,100 by May 21st.

  • Bias: Bullish
    POP: 5%
    Debit Paid: $200
    Max Profit: $9,800
    Max Loss: ($200)
    BP Usage: $250

    

• I closed my Short Put in Corn Futures (/ZCN6) on Monday. On Thursday, I went back in. I am short the $450 Strike in the June 26th expiration, which was about a 30Δ at entry. I believe Corn prices stay elevated in the short term.

  • Bias: Bullish/Neutral
    POP: 73%
    Credit Rcv'd: $413
    Max Profit: $413
    Max Loss: ($22,088)
    BP Usage: $942

    

• On Thursday, I also opened a Short Put in Wheat Futures (/ZWN6). I am short the $620 Strike in the June 26th expiration, which was about a 27Δ at entry. I believe Wheat prices will also stay elevated in the short term as well.

  • Bias: Bullish/Neutral
    POP: 74%
    Credit Rcv'd: $656
    Max Profit: $656
    Max Loss: ($30,344)
    BP Usage: $1,704

    

• On Friday, news had come out of an increased chance of a rate hike in December. This caused Bond Futures (/ZBU6) to drop. I sold a Short Put at the 107 Strike, which was a 20Δ at entry. I’m expecting /ZB to go up soon. /ZB is a larger product, /ZN or are much smaller sized products to structure similar trades.

  • Bias: Bullish/Neutral
    POP: 85%
    Credit Rcv'd: $547
    Max Profit: $547
    Max Loss: ($106,453)
    BP Usage: $2,747

    

• Due to the news I stated above, the market overall was down a bit. I decided to sell 2 Short Puts on Micro S&P 500 Futures (/MESU6) on Friday. This was the $7,200 Strike, which was a 25Δ at entry. I went with the Micros to keep it small since the VIX was around 19. Two contracts of /MES is roughly the equivalent of 1 contract, and I prefer the Futures Options for tax benefits.

  • Bias: Bullish/Neutral
    POP: 79%
    Credit Rcv'd: $790
    Max Profit: $790
    Max Loss: ($71,210)
    BP Usage: $3,054

    

• With the similar logic as above, I also opened a Short Put in the Micro Nasdaq Futures (/NQU6). I am at the $27,500 Strike, which was a 20Δ at entry. I just went with 1 contract here since /MNQ is a much larger product compared to /MES.

  • Bias: Bullish/Neutral
    POP: 82%
    Credit Rcv'd: $690
    Max Profit: $690
    Max Loss: ($54,310)
    BP Usage: $1,394

    

Managed

No management was needed this week. and have slowed down a bit. /CL is also working out nicely. We’ll see what next week brings!

Closed

• On Monday morning, I closed my Short Put in Corn Futures (/ZCN6). I locked-in 37% of Max Profit within 4 Days, netting $175. I may look to re-enter again soon.

  

• I sold a Short Put in on Tuesday for their earnings. I went with the $160 Strike, which was around a 30Δ at entry. The stock had a positive post earnings reaction. I was able to close this out on Wednesday for 50% of Max Profit, netting $700 overnight.

  

• My Short Put was closed out on Thursday. I opened this on May 6th. I closed it out for 50% of Max Profit, netting $180.

  

• reported earnings after the close on Thursday. I participated with a 1DTE bullish Call Butterfly. This did not work out, resulting in a $350 loss.

  

• I had a Risk-Free Fly in . This trade started as a Put Ratio Spread originally opened on March 18th. I now realize my $350 credit that I locked-in when converting to the Risk-Free Fly on April 14th.

• My lotto Butterfly in MU did not pan out. This expired worthless, for a $200 loss. Overall, these two trades resulted in a $150 gain (350 - 200).

  

• I had a cheap downside Put Butterfly hedge in SPX. This expired worthless on Friday morning, netting a $165 loss.

  

• I also had a cheap downside Put Butterfly hedge in /NQ. This expired worthless on Friday, netting a $200 loss.

  

Open Options/Futures Positions