Hit 200 dollars after hours
Up 46 points
Here we go again 🙂
The key inflection point in the GameStop saga last month — when brokers suddenly limited trading in the stock — could have been avoided if the systems designed to settle trades moved faster , according to Robinhood’s Vlad Tenev . Now, the CEO of the online broker may get his wish, at least partially.
The Depository Trust & Clearing Corporation (DTCC) announced on Wednesday that it expects to be able to shorten the time between when a trade takes place and when it is finalized — known as settlement — to one day from two. The DTCC is the most powerful clearinghouse in the market, and serves as a hub where buyers and sellers go to finalize and record their trades.
Robinhood, which relies on a subsidiary of the DTCC called the National Securities Clearing Corporation (NSCC) to clear its trades, stopped all buying in shares of GameStop (ticker: GME), AMC Entertainment (AMC) and other stocks on January 28 . Other brokers also placed limits on some transactions. Shares of the impacted companies mostly fell that day and some did not regain their prior highs afterwards. Investors blamed the brokers — and Robinhood in particular — for the shift.
Robinhood said that it was forced to take drastic action because of demands from the NSCC for more capital. Brokers need to deposit capital with their clearinghouses in case there’s some problem during the trade-settlement process. During the GameStop frenzy, those deposit requirements rose because of the large amounts of shares being traded and leverage being used. Robinhood deposited $124 million on January 25 , but the NSCC asked for $3 billion on Jan. 28 , Tenev said in testimony for a congressional hearing last week. The deposit requirement eventually fell to $1.4 billion that day, Tenev said, but Robinhood’s operations were impacted for days, with limits placed on buying and options.
At the hearing, Tenev said that he thinks the best way to solve this issue is to reduce the time to settlement to zero. “The existing two-day period to settle trades exposes investors and the industry to unnecessary risk and is ripe for change,” he said. The DTCC said it cannot comment on the Robinhood episode.
However, the DTCC has been working for years on shortening the time from trade to settlement — and in 2017 reduced that time span to two days from three. DTCC executives now say they can get to T+1, or finalizing a trade one day after it takes place, within two years — which could allow the DTCC to reduce margin requirements on brokers and other market participants.
The delay between when a person hits “Buy” on an investing app and the trade being fully recorded has less to do with technology and more to do with industry practice and risk management. The DTCC says it has the technology to move to one-day or possibly even same-day settlement right now, but that it will depend heavily on the various parties that use its system to sign on.
The delay between trades and settlement also serves a purpose, and reducing that time could impact other processes. For instance, investment firms that trade one stock multiple times during a day tend to net those trades at the end of the day. That way, they don’t have to go through the same process for each trade. Making sure all of those trades are settled and financed in real time, or in a very short period, would likely be impossible given current market dynamics.
The DTCC has been experimenting with blockchain technology to clear and settle trades. Some of today’s processes could theoretically be automated under that system, which would store trading data in encrypted files and allow market players to hook into the database. But blockchain tech isn’t fast enough to keep up with the current volume of trading. The DTCC is working on a prototype of a system, dubbed Project Ion, that could one day put clearing and settlement on a blockchain.
For now, the DTCC expects to be able to move forward with its current technology. One client is already weighing in.
“T+1 is a welcome stepping stone to real-time settlement,” Tenev said in reaction to the DTCC announcement. “We look forward to working with lawmakers, regulators and the industry to make this a reality.”
#SPX1dte Expiring: $SPX Feb 24th 3790/3810-3945/3965 condors, sold yesterday for 1.25
#SPX7dteLong This one would have been an ideal candidate for a double-dip profit, but I sadly did not close put side on yesterday morning’s drop. Condor purchased for 16.40 last Thursday…
Sold to close 39056/3885 put side for .50 at 47 minutes before closing bell.
Letting call side expire… Hopefully will be at least 10.00 credit.
Moving rapidly higher, up 40%+ on day, mostly in last few minutes
#ShortPuts – Let’s see if it can take out the 50, 100, and 200 day moving averages in a week and a half. Already over 40 percent off all time highs.
Sold OSTK MAR 5 2021 62.5 Puts @ 1.35
STO 4/16 65 put @ 3.00
05:53 AM EST, 02/24/2021 (MT Newswires) — Straddle prices for stocks expected to report quarterly results this week
Airbnb (ABNB) February weekly 187.50 straddle priced for a move of 12% into the expected release of quarterly results after the bell on Feb. 25.
AMC Entertainment (AMC) February weekly 7.5 straddle priced for a move of 22% into the expected release of quarterly results on Feb. 25.
Best Buy (BBY) February weekly 115 straddle priced for a move of 6% into the expected release of quarterly results before the bell on Feb. 25.
BTO $REGN May 470 calls @33.7 earlier
Horrible b/a, but like the stock at this level here, and wanted to limit the risk.
There are increase in option buying today for April expirations, I like May better, expires after the next earning.
$FSLY BTC 2/26 84 put at 8.50. STO at 3.27
$LAZR BTC 3/5 28 put at 1.20. STO at 1.70
$MRVL BTC 2/26 52.50 put at 4.20. STO at 1.46
$AKAM BTC 3/5 95 put at 1.00. STO at 1.20
$SNOW BTC 2/26 290 and STO 3/5 270 put at $5 debit. Earnings 3/3 after market. Plan to be out before.
#ShortPuts – I may regret it but adding one more a little more aggressively.
Sold OSTK FEB 26 2021 77.5 Put @ 2.40
Sold to open $RIOT 3/19 25/35/80/90 iron condor @ 3.80
Some of the best credit investors we know always look at stock dividend yields vs. the company´s ten year corporate bonds. Interesting data here. These are the top 30 S&P 500 dividend yielders, but we also show their cost of debt. Many of the top dividend payers in the S&P are paying out much more than their cost of debt (average bond yield) and many of them have strong balance sheets as well. The top 3 highest spreads of dividend yield cost of debt are 1. Altria 2. Exxon Mobil and 3. AT&T. This speaks to how cheap true value names are.
BTC March 12, 80 puts at 2.64, sold at 3.25, Just reducing risk in case this decline goes further.
Sold $NFLX 3/19 515/505 bull put spread @ 2.75
Sold $TSLA 3/19 600/590 bull put spread @ 2.00
BTO 10 NVDA Feb-26-21 575/Mar-05-21 570 Call Calendar 6.1
Somewhat for the bounce and for the earning premium this week.
No upside risk, downside below today’s low.
Roll $LMND Feb-26-2021 135/145 #BuPS // Mar-19-2021 @1.54 debit was STO @1.95. Moved risk out.
Roll $ABNB Feb-26-2021 155/165 #BuPS // Mar-19-2021 @1.15 Credit. Originally STO at 2.08.
Roll $AMC Feb-26-2021 14 #ShortPut // Mar-19-2021 @0.20 credit. Second roll on this one.
BTC $PTON Mar-05-2021 150/160 #BeCS @0.10 Debit. STO @0.95 yesterday
Edited to add … TSLA … JFC.
#ShortPuts – Taking this off for a gain on the little bounce.
Bought to Close NFLX MAR 12 2021 490.0 Put @ 3.50 (sold for 5.00)
Sold $TQQQ 1/21/22 50 put @ 9.00. Thanks @jsd501 (from yesterday).
Sold 3/19 110.96 puts @ 2.40
Since I have been rolling a SPY short 377 Call forward for a few weeks I decided to take a chance on a 377 Put as a partial offset
Bought to Open 1 SPY Mar 15 2021 350 Put / Sold to Open 1 SPY Feb 26 2021 377 Put @ 0.06 Credit.
The short side is gone by Friday.
The long side is disaster protection and allows for a roll or rewrite of a new short.
#ShortPuts – I’ll let stock get assigned this week for earnings next week. Sneaking in an extra call sale this week to help with basis reduction. Easy to roll into next week if needed.
Sold SNOW FEB 26 2021 270.0 Call @ 3.00
#ShortPuts – Adding below the 200ma.
Sold SPY APR 16 2021 340.0 Put @ 3.70
Sold VXX 02/26/2021 18.00 Diagonal Calls @ 0.33 & 0.34
Sold VXX 02/26/2021 18.50 Diagonal Calls @ 0.29 & 0.30
Sold VXX 02/26/2021 19.00 Diagonal Calls @ 0.22, 0.26 & 0.29
Sold VXX 02/26/2021 19.50 Diagonal Calls @ 0.26
VXX opened at 15.82 and got up to 16.60.
Balances out my put exposure some more and uses up most of my leftover long March long calls.
STO April 1, 55 puts at 1.60
Btc QQQ 100 19 MAR 21 ,350/355 CALL @.16 had sto for .55
part of condor /still waiting on put to close
STO April 16, 50 put at 1.60
STO April 1, 65 puts at 1.95
STO April 16, 60 puts at 2.10
#ShortPuts – Starter here. Building a position at the 200 day and below if we keep dropping.
Sold SPY APR 16 2021 345.0 Put @ 3.40
Rolled today’s 385 Call to Wednesday’s 386 Call @ 0.06 Credit
Rolled today’s 386 Call to Wednesday’s 387 Call @ 0.42 Credit
Rolled today’s 387 Call to Wednesday’s 389 Call @ 0.12 Credit (now OTM for the moment)
Tanking – down 50
I added to my position in the January 2022, 50 puts at 8.40 so that will put my cost basis at 41.60 if I am assigned.
#SPX7dteLong These two orders were filled at the same instant when SPX dipped to 3887.50:
Sold to Close $SPX Feb 22nd 3920/3900 put spreads for 19.65. Condors bought for 15.55 last Wednesday.
Bought to Open Feb 26th 3865/3885-3895/3915 iron condors for 16.35.
#Shortputs – Starter positions outside the expected move and down closer to the 200ma.
Sold LABU APR 1 2021 80.0 Put @ 2.20
Sold LABU APR 1 2021 85.0 Put @ 2.90
Sold $AMZN 3/19 3080/3070 bull put spread @ 2.85 with the stock around 3197
STO April 16, 220 put at 9.50. Earnings are on March 11, but I will take that risk. Stock is trading at 246
Sold $TQQQ 4/1 75 put @ 3.00
BOT QYLD @23.00-23.04
STO TQQQ 18 JUN 21 ,55 PUT @4.08 and 4.10
Sold VXX 02/26/2021 18.00 Diagonal Calls @ 0.30
Sold VXX 02/26/2021 18.50 Diagonal Calls @ 0.26.
VXX opened at 15.60.
Balances out my put exposure a bit
LAZR: First time in this expiration. I think you can do better now legging in. I sold all at the same time.
Sold LAZR MAR 26 2021 26.5 Puts @ 2.20
Sold LAZR MAR 26 2021 27.0 Puts @ 1.42
Sold LAZR MAR 26 2021 27.5 Puts @ 1.78
NVDA: Earnings Wed. Selling my position a little early on the weakness.
Sold NVDA FEB 26 2021 550.0 Put @ 5.00
SOXL: Jumping back in. Meant to do the 510 strike for the split.
Sold SOXL MAR 19 2021 515.0 Put @ 20.00
Gaining experience with IC, BuPS and DiagBuPS……learning on the fly…..so far so good….
AMZN stock price over the past 25 days is net down….allowing the short options to do what they are supposed to do in a covered call strategy. Three more months to get the stock gain to long term.
$BIIB 255/245 bull put spread
$GME 90/100 bear call spread
$GME 135/155 bear call spread
$GME 135/125 bull put spread–full loss but offset by other premium sales around it
$LABU 98 put
$MOMO 2/19 15/15/16 jade lizard
$UVXY 10.50/15.50 bear call spread
$UVXY 11/16 bear call spread
$UVXY 12/17 bear call spread
$UVXY 13/18 bear call spread
$UVXY 15/20 bear call spread
$ADBE 470/460 bull put spread
$EWZ 31/41 short strangle
$FTI 11 puts–there was a spinoff here and the new symbol FTI1 I think is 83% of the original, couldn’t follow it but either way I’m in the money and liquidity on the new symbol was pretty much non-existent so I will take assignment here at whatever the number is, somewhere around 9ish or so and I’ll immediately sell the shares Monday morning, take the loss and move on. The stock will no longer be listed on the Nasdaq it looks like so I have no interest in trying to work basis down on it.
Have a great weekend everyone.
$SOLO 10 call
$NVTA 55 call
$NNDM 20 call
$SDC 13 call
NNDM 17.50 call
$WYNN 130 call
$LAZR 22.5 put Thank you lightning strikes again @fuzzballl
$TQQQ 65 put Thank you @jsd501
$OXY 20 put
$ARK 120.96 put Thank you @ramie77
$TQQQ 60 put Thank you @jsd501
$NEO 50 put
$LABU 95 put Thanks @fuzzballl
$WATT 3.50 put
$LGVW/BFLY 20 put
$MRVL 51 Put
And finally my terribly mismanaged spread trades.
All expired at total loss.
$FB 285/310 BUCS
$BA 240/300 BUCS
$MRVL 52/60 BUCS
Have a nice weekend
And @jeffcp66 thanks for all you do – and you do it all! Plus podcasts – Whew
OX $MSTR 770/780 #BuPS – Was STO @1.55 on 2/8/2021, same day TSLA noted having bought a bunch of BitCoin.
OX $SLB $27 #CoveredCall – was STO @.30 – been sitting on the stock since last year.
Lots of long calls and puts bought as part of old diagonal spreads expired today. Of course I wrote against them more than a few times.
SLB 02/19/2021 27.50/30.0 Bear Call Spreads
VXX 02/19/2021 21.0/38.0 Bear Call Spreads
VXX 02/19/2021 20.50/38.0 Bear Call Spreads
VXX 02/19/2021 20.0/38.0 Bear Call Spreads
VXX 02/19/2021 19.50/36.0 Bear Call Spreads
VXX 02/19/2021 19.0/33.0 Bear Call Spreads
GME 02/19/2021 5.0/35.0 Bull Put Spread
AAL 02/19/2021 17.0 Covered Call – bought 3/27/20 @ 17. Been writing covered calls for 11 months to get back to even on the stock. (not counting all the premiums)
MRO 02/19/2021 9.00 Covered Calls – bought 3/27/20 @ 8.45 Been writing covered calls for 11 months to get a small gain.
I think the chart looks like we could have a down turn on this stock. So, I bought a bearish butterfly. I bought
775/760/755 for 4.70, March 19 expiration.
#SPX1dte Sold to Open $SPX 3810/3830-3955/3975 iron condors for .95, SPX at 3903, IV 9.8%, deltas -.06 +.06
Expiring: Feb 19th 3820/3840-3965/3985 condors, sold yesterday for .95
$NNDM STO 3/19 17.50 call at 1.45
Last trade today
Bought to close SLB Feb 19 2021 26 Calls / Sold to Open SLB Feb 26 2021 27.5 Calls @ 0.02 Credit
I was hoping the 26 calls would just expire …. but oh well …
Sold them @ 0.89 last week.
Bought to close 1 TLRY 02/19/2021 28.0 Put @ 0.01. Sold last week on a rolldown at 2.55
Didn’t want to chance the 29 puts expiring (it looks like they will) but with the open around 27.50 this morning I rolled those down to TLRY Feb 19 2021 26.0 Puts at a small credit.
Bought to close SPY Feb 19 2021 386 Call / Sold to Open SPY Feb 24 2021 387 Call @ 0.28 Credit plus the extra point on the strike price.
Rolled VXX 02/19/2021 16.50 Puts to VXX 02/26/2021 16.00 Puts @ 0.03 Credit
Rolled VXX 02/19/2021 16.0 Puts to VXX 02/26/2021 15.50 Puts @ 0.07 Credit
Rolled VXX 02/19/2021 15.50 Puts to VXX 02/26/2021 15.00 Puts @ 0.11 Credit
Rolled UVXY 02/19/2021 9.50 Puts to UVXY 02/26/2021 9.00 Puts @ 0.02 Credit.
The extra 0.50 lower on all the strike prices is more significant than the the cash inflow for 5 more trading days
But the cash is also nice.
BTC Feb. 19, 65 puts at .01, sold at 4.20
I am back from my 2nd covid shot and they had more people putting shots into arms today. It was also that I got up ay 6am and hit the road to Miami.
#ShortPuts – Didn’t think this would fill. Quick 2 day scalp.
Bought to Close SOXL MAR 19 2021 510.0 Put @ 15.00 (sold for 20.00)
#ShortPuts – Strong rally to all time high. I’ll take it 3 weeks early and watch for some weakness.
Bought to Close COUP MAR 12 2021 320.0 Put @ 2.60 (sold for 5.30)
#ShortPuts – Well crap. I was messing with some open orders and fat fingered the wrong one. Accidentally filled on this. Originally an earnings trade. I’ll try to get back in on any weakness.
Bought to Close OSTK FEB 26 2021 75.0 Puts @ .71 (sold for 1.25)
FSLY: Stock will be assigned at 82.75. Selling max downside protection since it could go either way here.
Sold FSLY FEB 26 2021 79.0 Call @ 4.30
QS: Jumping back in post earnings.
Sold QS MAR 12 2021 50.0/49.0/48.0 Put bundle @ 4.80
ROKU: Selling post earnings small dip.
Sold ROKU MAR 19 2021 360.0 Put @ 4.10
SNOW: Rolling straddle out to a strangle. Week before earnings. Big roll next week if needed.
Rolled SNOW FEB 19 2021 305.0 Straddle to FEB 26 2021 302.5/320.0 Strangle @ 6.10 credit (19.55 total now)
UVXY: Replacing this week’s expiration. Reducing basis on my hedge.
Sold UVXY FEB 26 2021 8.5 Calls @ .78 and .79
#SPX7dteLong. Well, missed the timing on my long-only attempt for this Upside Warning. Sold to close $SPX Feb 19th 3935/3955 call spread for 2.70. Bought for 9.00 on Monday.
The TLRY 02/19/2021 31.0 Puts I rolled down to from TLRY 02/12/2021 37.0 Puts last Friday had to be rolled again.
Rolled to TLRY 02/26/2021 29.0 Puts @ 0.14 Credit
STC rest of $TSLA Feb-19-21 800/Feb-26-21 800 Call Calendar @15.1, bought yesterday for 10.4 and sold half at 13.5.
In my IRA, BTC Feb. 19, 60 puts at .01, sold at 2.72
I have one more trade to buy and I get my 2nd covid shot tomorrow so will not be here.
STC $ENPH 180 Feb-19-2021 #LongPuts @3.00
BTC $NVDA Feb-26-2021 485/495 #BuPS @0.25. Was STO @2.00.
#SPX1dte Sold to open $SPX Feb 19th 3820/3840-3965/3985 iron condors for .95,, SPX at 3918, IV 13.9%, deltas -.06 +.07
Sold $CGC 3/10 32.50/27.50 bull put spread @ 1.11. Would take assignment at close to 31 if it the stock continues to tank.