I'm adding another 10% of my portfolio to this core position as I continue to expect that we are in the process of migrating down to approx. the 273-275 price levels likely before the end of this year, most certainly by the time this position expires. This will make a total of 30% risk capital in this core position

I'm adding another 20% of my portfolio to this core position as I continue to expect that we are in the process of migrating down to approx. the 270-275 price levels

I've decided to go ahead and execute this CORE POSITION that I've been anticipating opening again as we continue to expect that the overall market is going to correct down to the 225 to 207 price levels in the SPY over the next 12-24 months. As a core position, my position size is considerably larger than normal swing trading positions. I expect that over the next 6-9 months that we SPY will challenge its 5 year value area high which is approx. around the 257 price level. This would be a dramatic move lower with the SPY currently trading at around 290. There is a fairly decent size auction volume node at around the 267 price level though that I expect we will find support on for at least a few months before moving lower to the 250 price level. Here's a link to the chart that I've attached to this position: http://tos.mx/wThZPL

Selling these short puts against my June 290 Long Puts to further reduce my cost basis as it looks like we are going to have several more days of clustering before we will continue to drop into the 290 level. As I have 39 contracts of long puts, I have sold to open 39 contracts of these short puts.

As discussed in Zones Workshop on 2/26, I expected the SPX to drop into approx. the 3050-3000 price levels before a short term wave higher. Based on what I've see today as we've come into those levels, I expect price to retrace up into approx. the 3120 price level over the next several sessions

Selling these short puts against my June 290 Long Puts to further reduce my cost basis as I do not expect we will continue to drop into the 290 level by next Friday.

ADJUSTMENT 02/25/2020 @ 12:53 PM ET: I went ahead and decided to roll this position out to this upcoming Friday as it's already a max loss with the extremely rapid price movement and still a decent probability of a temporary retracement into the 3260-3270 price levels through the end of this week. This cost me a 0.70 debit which brings my net credit down to 1.50 =============================== As discussed in Trade Talk on 2/24, I expect price to retrace into approx. the 3270-3290 price levels before extending lower into the 3200 price level. Here's my shared chart for ThinkorSwim: http://tos.mx/gA1O8N7

ADJUSTMENT UPDATE 1/15/2020 @ 1:43 PM ET: As discussed in the group meeting on 01/14 here: https://thesupertrader.com/pr-01-14-2020/ I went ahead and rolled my HD position out to the Feb 21, 2020 expiration as I still expected a wide cluster between 225-210 over the next several weeks. I will add a bull put to this position when we approach the 215 price level. This roll was done for a debit of 1.20 leaving me with 0.03 of net credit. ADJUSTMENT UPDATE 12/20/2019 @ 12:30 PM ET: I rolled my 215/220 bear call out to Jan 17, 2020 expiration which cost me 1.65 debit. I then increased my size slightly from 6 contracts to 10 contracts which gives me a total risk of 5% of this portfolio. The 4 additional contracts of the 215/220 bear calls I added for Jan 17, 2020 expiration gave me 3.27 of credit. So my net position credit is as follows: 0.13 debit on the original 215/220 bear call which has a total of 6 contracts which equals a $78.00 debit. By adding the additional 4 more contracts of the 215/220 @ 3.27 credit times 400 = $1,308 of credit this gives me a net credit of 1308 - 78 = 1230 credit divided by 10 contracts = 1.23 net credit on the position overall. ADJUSTMENT UPDATE 12/12/2019 @ 1:50 PM ET: I rolled my 215/210 bull put from 12/13 expiry to 12/20 expiry as I see HD retracing back up to between 215-217.50 within the next week. I was able to roll that position for a 0.34 debit which leaves me with 0.67 credit. I then added a bear call with the 215 short call and 220 long call, within the same expiration and received an 0.85 credit for that position. This leaves me with an Iron Butterfly with a net credit of 1.52. At this point, I see HD continuing lower over the next several weeks but not before it first retraces back up to between the 215-217.50 price levels. I will then close my bull put between those price levels and likely continue with my bear call. Here's my ThinkorSwim Shared Chart: http://tos.mx/06W9osb ADJUSTMENT UPDATE 12/3/2019 @ 2:25 PM ET: As discussed in our position review live group meeting on 12/3, we expect that HD continues to cluster between 212.00 and 222.50 over the next several weeks. We decided to keep this position but roll to account for the dividend being paid out on 12/4. This roll was done for a 0.11 debit which leaves me with 1.01 of credit. HD confirmed last week that it wanted to hold the 217.50 price level and additionally confirmed expected resistance at approx. the 222.50-226 price levels. I expect that it will continue to cluster between the 215.00 and the 226 price levels for another 1-1.5 weeks.

Now that NKE has touched a major resistance zone and tested back, I expect that price will migrate towards the 94-91 price levels within the next 1-2 months.

Following earnings, DIS has come back into the supporting zone I anticipate to hold for the next several weeks.