Yesterday, we capitalized on elevated IV Rank (64%) and 10-Year yields pushing past 5.34% by selling the aggressive 0.47 Delta 104 ATM Put on ZNZ26 for 0’30.
Today, following rapid volatility contraction and favorable price action, we bought back the position at 0’17 capturing a 43.3% profit ($203.12 per contract) after holding for just 24 hours.
This is mechanical execution in practice. When an aggressive, short-duration setup yields over 40% of its max potential in 24 hours, you don’t wait around for the remaining cents while taking on accelerating short-dated gamma and tail risk. You close it, lock in the gains, unlock your buying power, and move on to the next opportunity.
Don’t think, trade.
Strategy: Close Position
Expiration: 23 OCT 26 (15 DTE)
Strike Price: 104
My Execution Fill: 0’17
📊 Quantitative Metrics at Exit
Gross Transaction Realization: Profit of $203.125 or ~% 43
Days Holding Position: 1 Day
🛠️ Core Exit Logic
Why This Position Was Closed: Objective was 50% profit target. We lock in the gains early at around 43% after holding 24 hours to mitigate tail risk and free up capital.