Last night the new NFL football season kicked off with the rest of week 1’s opening games this weekend. Those familiar with football know that you want your field goal kicker (to score three points or extra point after touchdowns) to kick the ball far enough to reach the uprights.
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In day two of this selloff in markets, volatility surged giving us an opportunity to add a short put spread to our existing short call spread trade in our primary HiPOS Conservative Strategy. Those who have been in the strategy will recognize this total position as a short iron condor trade.
Many of you might have noticed some adjustments within ZEGA’s Buy &Hedge Retirement Strategy during the past few weeks. The market was down 3.5% Thursday, but these adjustments were not the ZEGA trading team making a market call, rather this was part of a systematic approach where we periodically reduce some exposure.
After Friday’s successful expiration, the market has given us another opportunity to sell calls on the S&P 500 Index. This is the 3rd consecutive call spread placed in our HiPOS Conservative strategy; and that is unusual.
Today is expiration day for our primary HiPOS Conservative trade. The position will expire worthless at the close of the market today (Friday) which results in a full profit realized. As sellers of premium, we take in a credit and want the positions to eventually go to zero