Trade Alert: Portfolio 2 — Closing the 20-Wide Call Diagonal

Closed the last of the call diagonals (Jun 18 705C / May 15 725C) for a $200 profit.

TonyB Commentary

“Trim the Lean. Book the Profit. Patience is a Position.”

Today, we reduced our long delta exposure by approximately 25%, closing the Jun 18 705C / May 15 725C call diagonal spread for a $200 profit. This position was originally initiated on April 20, and the move allowed us to lock in gains while trimming directional exposure.

This adjustment helps us rebalance the portfolio, particularly after the recent upside movement, and ensures we are not overexposed to continued bullish momentum at less favorable levels.

We continue to hold a relatively large amount of buying power on the sidelines, remaining patient and selective. Rather than forcing trades, we are waiting for higher-quality setups where the risk/reward and volatility environment better align with our approach.

This closes out the last of the three call diagonals we layered in earlier in the week (15-wide closed Apr 21, 11-wide closed Apr 22, 20-wide closed today). The upside participation leg is now fully harvested.

SPY is trading at $711.98 — the rally has moved the market into a zone where our long delta was getting richer than the thesis required. Closing here locks in the move while keeping the downside-premium engine (short put vertical + stacked ratios) still working in our favor.