May 27 TWTR idea #coveredbackratio…

May 27 TWTR idea #coveredbackratio
I goofed on that last message that went out, I had a lock on pricing and needed to change the % below:

Found a good trade here on TWTR, the return on risk is annualized at over 210% (selling 14DTE calls) vs holding shares (CC) @ 57%. Evaluating these trades based on ROR makes them compelling.

1. Sep Backratio: +12 30 calls/ -8 33 calls, @9.15, for 400 equivalent shares, max risk = $3660 vs $13,452 holding 400 shares. The BackRatio deltas are 391 on a 400-share stock replacement.

2. Then sell 14DTE calls, the June 8 34 call @ .74 (x4). $296/$3660= 8% per every other week, *26 weeks = 210% return.

TWTR just joined IBD big cap 20

TWTR

LABU and….

Just stumbled across this…LABD is the bearish version. Weeklies available and a reverse split already in the books. Could be one to watch for a short entry on the next biotech selloff. Maybe buy some 2020 puts and sell weekly against them. Not a ton of liquidity but spreads aren’t terrible.

FWIW…

Have a great long WE

Have a great long WE

Expiration and More Importantly Happy Memorial Day

#optionsexpiration
$GS 242.50 call
$FB 187.50 call

The best to all at the bistro and especially to all those
who serve or have served our country.
God Bless America

SPX calls sold

#SPXcampaign Sold $SPX June 22nd 2795/2820 call spreads for 1.70. No upside warning so I’m still selling both sides of this market.

Closed Early SPX / SPX Trades

#spxcampaign
Closed Early
$SPX BTC 6/8 2800/2775 BECS at 50% of max profit.
$SPX BTC 6/15 2835/2810 BECS at 70% of max profit. Thank you @jeffcp66

#spxcampaign
$SPX STO 6/22 2595/2620 BUPS at 1.95
$SPX STO 6/15 2675/2700 BUPS at 5.70 Thank you @jeffcp66

AMBA

#LongCalls #LEAPS – Last one…squeezing in one more sale before earnings.

Bought to Close AMBA MAY 25 2018 50.5 Calls @ .08 (sold for .80)

Sold AMBA JUN 1 2018 51.5 Calls @ .91