With the HiPOS Conservative trade, it is doing what it was designed to do. Allow for fluctuation in the underlying index while seeing positive time decay tick off as the days pass. This position has an end of month or January 29th expiration date to be exact.
Today the ZEGA Traders were busy putting on a new short call spread position in the S&P 500 Index (SPX). Above we have our typical graph showing the underlying index along with the purple curve line and short strike area at the 4075 level. More on that in a bit.
Not sure how many of you fellow Netflix subscribers noticed that they have not one, but three different burning fireplace videos. Its unclear if we should call it a movie or a show, but if you search fireplace or yule log it will come up. The one is in high definition 4K and complete with crackling wood for your holiday enjoyment.
Tuesday the Russell 2000 Index made another fresh all-time high rising another +2.40% to just under 1960. After underperforming against the other indices for some time, it seems like it has been on a rocket ship higher since.
A new trade was executed in our HiPOS Conservative version today on the call side. This trade came adjacent to the most recent expiration that occurred this past Friday where we saw a successful full profit realization.
The Russell 2000 Index continues to make new all-time highs and move against our short call spread. However, we now only have three more trading days until expiration day on December 4th. Yes, it is December 2020 already!