ZZZZZ….. this market is putting me to sleep
STO SPX 2030/2020 This Fri .75 to complete IC
#VXXGame – Volatility-products + prayer
$SVXY just isn’t performing well. $VIXY is about 4% above where it was a couple weeks ago but $SVXY is about 10% below where it was. $VIX term structure has a nice contango going on ( >5%) but $SVXY still can’t manage to get out of it’s own way.
I have the fewest open put positions that I’ve had in years. In the past with $SVXY this low, we would have been piling on the short puts in the out month’s bringing in big premium. But with the way it is performing, I really haven’t been too tempted to do that. I know Fuzzball has continued to sell some, but for the most part, I think we have been just continuing to let open positions burn off. I really have all the shares I want right now. If I had none, I’d be more aggressive on the put selling myself. I was selling weekly puts about 8 trading days out and 8 to 10 points OTM but that premium has somewhat dried up so not as good a risk/reward.
$UVXY is only 10% above all time low, $SVXY is 40% below all time high.
Just too much uncertainty for me to be adding $SVXY exposure, sticking to $UVXY when opportunities present themselves. Fed coming up. Don’t know what will happen after year end chase for performance gets behind us. Etc…
#VXXGame STO $UVXY Dec 11th 23 puts for .65. These will replace the 23 puts I have for this Friday, which should expire. Volatility has been in consolidation with the indices, and I expect that to continue. If it doesn’t, these are easy to roll.
#EarningsScalp – Haven’t decided yet but both have earnings later this week. I’ll be watching for now and see what’s available later this week.
Now will add put side
I got this question over the weekend:
What type of account are you trading in when you short naked? Regular margin/Portfolio margin account? Trying to find out what the more experienced folks setup when the run the types of strategies you use and not get killed on the tax side, but have all the strategies open to me unlike an IRA style acct.
I use two different account types. My main account is an LLC account with portfolio margin… it is set up as a business partnership with family members. There are no restrictions on the types of trades. I also trade with 401K accounts… these are retirement accounts sponsored by the LLC for the members of the LLC (who are technically employees). Each member, including myself, rolled over portions of IRA accounts into these 401K’s. At Interactive Brokers, 401K accounts do not have restrictions against naked options. They are Reg-T accounts, so margin requirements for shorts are higher than portfolio margin. I typically sell naked options in my LLC account and stick to spreads in the 401K accounts (almost exclusively the #SPXcampaign, which is tailor made for retirement accounts).
For the short strategies such as #Earnings and #ContangoETFs, you will need to use spreads if you want to trade in an IRA. I usually don’t use spreads, but some other contributors on OptionsBistro do, such as @fuzzballl, who uses a mix of naked and spreads.
Let me know if I can help further!
#Yellin this week
FYI Speed bumps…Chairwoman speaks on Wed at 8:30 and 12:25, then testifies on Thurs at 10:00 same time ISM non-manufacturing PMI comes out…mark your calendar.
#ContangoETFs – Nothing would make me happier than a nat gas rally so here’s something for Mr. Market to shoot at…
Sold BOIL DEC 18 2015 20/25 Bear call spreads @ .80
Trying to keep a fairly full position on any little bounce. Replacing a few higher strikes that should be closing soon. Another of our #ContangoETFs These are filling above the mid so I probably could’ve done better.
Sold NUGT MAR 18 2016 45.0 Call @ 2.70
Sold NUGT JUN 17 2016 60.0 Call @ 3.30
Sold NUGT JUN 17 2016 65.0 Call @ 2.40
#ContangoETFs Adding puts at any opportunity (margin free due to short calls).
STO $KOLD Dec 18th 125 put for 3.00
STO $KOLD Dec 18th 128 put for 3.70
Adding to a hedge against my short ZSL position. Short ZSL is a long silver position so hedging with a short silver position. Great thing is they are both #ContangoETFs
Sold AGQ DEC 18 2015 30.0 Calls @ .75
#SPXcampaign STO $SPX Dec 4th 2015/2035/2125/2145 iron condors for 2.60. Expiring this Friday. Slightly risky due to data coming out this week, but looking for consolidation phase to continue. Will try to be out of this before Friday’s payroll numbers.
#ShortPuts – Adding to a hedge against some short calls…
Sold NFLX DEC 4 2015 123.0 Puts @ 1.65
#ContangoETFs – Bought to Close TZA DEC 11 2015 45/50 Bear call spreads @ .06 (sold for .90)
Just a little scalp from a couple weeks ago. Still short Jan 50/60…
#SPXcampaign BTC $SPX Dec 11th 2175/2200 call spreads for .10. Sold for 1.35 on Oct 23.
CNBC Now @CNBCnow
BREAKING: Pending home sales up 0.2% vs. up 1.5% est.
#SPXcampaign STO $SPX JAN4 16 (1/22/2016) 1875/1850 BuPS @1.45
STO Dec 24 $64 calls @ $1.40
These are technically now double covered. These will replace this weeks expiring $64 calls since I don’t believe there is much chance of $SVXY getting above $64 this week.
Sold $SVXY Dec 24 (weekly) 65 calls @ 1.25
#SPXcampaign STO $SPX Dec 31st 2175/2200 call spreads for 1.50.
Heavy week of data and reports, including nonfarm payroll on Friday. For #SPXcampaign this week I will be selling spreads in the Dec 31st expiration.
$FIT 11/27/2015 38 Calls (covered)
$GPRO 11/27/2015 38 Calls (covered)
$SVXY 11/27/2015 52 Puts
STC $PCLN 11/27 Calls @ 4.4 (Sold @ 9.3)
$CMG (Weekly) Nov 27 2015 500 Puts
$DUST (Weekly) Nov 27 2015 12 Puts
$MU (Weekly) Nov 27 2015 20 Calls (Covered)
$NUGT (Weekly) Nov 27 2015 60 Calls (Covered)
$SVXY (Weekly) Nov 27 2015 65 Calls (Covered)
$SVXY (Weekly) Nov 27 2015 66 Calls (Covered)
$SVXY (Weekly) Nov 27 2015 70 Calls (Covered)
$UVXY (Weekly) Nov 27 2015 23.5 Puts
$UVXY (Weekly) Nov 27 2015 24 Puts
$UVXY (Weekly) Nov 27 2015 38 Calls (Covered)
$UVXY (Weekly) Nov 27 2015 40 Calls (Covered)
$UVXY (Weekly) Nov 27 2015 53 Calls
$UVXY (Weekly) Nov 27 2015 55 Calls
$UVXY (Weekly) Nov 27 2015 60 Calls
$UVXY (Weekly) Nov 27 2015 65 Calls
$UVXY (Weekly) Nov 27 2015 70 Calls
$UVXY (Weekly) Nov 27 2015 80 Calls
$VRX (Weekly) Nov 27 2015 116 Calls
$VRX (Weekly) Nov 27 2015 117 Calls
$WYNN (Weekly) Nov 27 2015 57 Puts (Covered)
#Rolling Still holding this short stock position, but sale of calls and puts is bringing cost basis up.
BTC $VLO Nov 27th 71 call for 1.95, rolled to Dec 4th 71.5 call for 2.06
BTC $VLO Nov 27th 72 call for .96, rolled to Dec 4th 73 call for 1.13
#SPXcampaign SPX NOV4 15 (Today) 2110/2130 BeCS expired worthless
#SPXcampaign SPX NOV4 15 (Today) 2020/2045 BuPS expired worthless
If I ever have another dog I will name it Nugget! LOL…
Still hedging my short ZSL with short AGQ…rolled Dec 33 calls down to 30 and added more. Daring silver to rally here.
Still continuing aggressive shorting of puts and calls near the money on a weekly basis. Rolled 60 puts to next week’s 58 for .10 credit. 59 calls expiring today so sold next week 59’s for 1.70. As long as it grinds sideways these weeklies are pretty rich. Still overall net long SVXY so would love to see calls get in trouble. In the IRA I think I’ll let stock get called today at 57 with a 53 basis.
Great weekend everyone!
Closed Dec 30/40 for a dime. Eases the KOLD pain a little.
On the KOLD subject I also rolled my short puts from 140 to 155 against 105 calls. Strangle is now inverted 50 points while bringing in 48.58 so right now if KOLD closes Dec between 105 and 155 I’ll be at a 1.42 loss (if I let it expire). On the bright side with the huge amount of premium brought in I’ll have plenty of firepower to adjust on the next roll. Right now goal is to get out anywhere near even since it’s such a margin hog at TDA. Staying small is the key to being able to stay in these types of (experimental) trades.
Hope everyone had a great holiday and today was nice and boring in the market (other than Nat Gas).
A bit of an early ball spike but don’t expect to be around this afternoon.
$SVXY $48 Puts
$UVXY $25 Puts
$UVXY $53 Calls
Have a great weekend everyone.
Closed a few of these for pennies. Still short Dec 11 weeklies and Jan monthlies.
Been out working last few days but did mange a few odds and ends…
NFLX 120 puts expired last week so replaced them with 117 puts earlier this week. Now rolled those up to 123 puts for an additional 1.45 credit. Total credit now up to 2.75 expiring next week. Still aggressively selling the puts against ITM calls I’m short. Also short Jan 2017 put Leaps.
SPX will expire today IC 2025/2015 2115/2125
BTC $SPX Nov27 2100/2105 at 0.05. Probably go worthless, ha, but I’m going to enjoy the rest of the holiday by not sitting in front of the computer. Happy trading all. Jeff thanks for another successful blog week! PS…was the pie great?
#SPXcampaign – Not much movement in the index, but theta decay is moving nicely…
BTC $SPX Dec 11th 2165/2190 call spreads for .20. Sold for 1.25 on Nov 10th.
BTC $SPX Dec 4th 1950/1925 put spreads for .20. Sold for 1.25 on Nov 3rd.
#SPXCampaign BTC $SPX Nov 30th 2145/2170 call spreads for .05. Closed for margin. Sold as part of an iron condor for 2.00 on Nov 9th.
$SVXY #CoveredCalls – Sold SVXY Dec 31 2015 70.0 Calls @ 0.70. Only a partial fill on my order
Strikes up to 215 added to January and later. Not selling anymore today, but I will if we continue higher. Looking to load up some puts on every pullback.
BTO IWM 119 Calls Dec 1.84
#SPXcampaign Today I am looking to complete my full position for the Dec 24th expiry, which means I need a spread on each side. Starting with: STO $SPX Dec 24th 2165/2190 call spreads for 1.30.
Then, a few seconds later on a spike down: STO $SPX Dec 24th 1950/1925 put spreads for 1.40.
Have a great holiday, and thanks to everyone who has made OptionsBistro a success in its first month!
Have a good holiday to all
$UVXY Buy/Write Nov 27 26.5 covered call at 25.92. I’m OK owning down here, OK making an easy $50. I have a Nov. 27 32.50 covered call as well.
$SVXY #CoveredCalls – Sold SVXY Dec 31 2015 70.0 Calls @ 0.65. Trying to build up my covered call position before yearend, but very few contracts are trading.
Couldn’t get a fill on the Jan $30’s that Jeff got.
STO BOIL March $31 Calls @ $1.10
STO BOIL June $30 Calls @ $2.25
#VXXGame STO $UVXY Dec 4th 23 puts for .40, adding to the position I started yesterday.
#ContangoETFs STO $BOIL Jan 25 calls for 1.10.
STO $BOIL Jan 30 calls for .50
Any rally in Nat Gas is worth selling
$NFLX STO 11/27 127 calls (covered) .55
$TSO STO 12/18 105/110 BUPS .75
$UVXY STO 12/4 23P @ .38
$PCLN BTO Nov 27 1245 calls. Real turkey in refrigerator. Hope this one flies.
Happy Healthy Thanksgiving to a bunch of people who share.
#ContangoETFs BTC $TZA Dec 18th 50 calls for .30. Sold for 1.55 on Nov 12th
First post-yesterday bought a Jan 20 #VIX 18/21 BuCS for .71, looking for volatility to increase, market is high.
Reminder that the next fed decision I believe is scheduled for Dec 16, 2 days before Dec monthly expiration. I currently have not opened any #VXX related positions for Dec 24 or Dec 31 expirations. I plan to hold off until we get close to the Fed meeting.
I expect that volatility could get elevated prior to the meeting, then just about a coin toss as to what the market will do in response.
Nat Gas inventories are scheduled to be released on Wed @ 12pm eastern. Last week, even though the build was less than expected, nat gas still sold off hard. This week, expecting a build of 5 Billion Cubic Ft.
New CEO seems pretty shady. Wonder how much he made on this deal. Incredible…
#VXXGame Followed Iceman and Kelly, STO $UVXY Dec 4th 23 puts for .40
#eminis Sold the call side of my Jan strangle a little too soon. Currently holding Jan monthly 1900/2100 strangle for a total premium of 33.25. Rolled the 1900 put up to 2000 for an additional 12.50 credit.
Position is now Jan monthly 2000/2100 strangle @ 45.75 so breakeven of 2145.75 and 1954.25. Also holding a couple short eminis as overall portfolio protection so if we implode the put will be covered for additional profit. Also short a strangle in Dec and short puts further out and well below the August lows Waiting a little to add calls to those. I’d be happy to go long down in the 1650-1800 range if we get there.
$UVXY #ShortPuts – Sold UVXY Dec 04 2015 22.5 Puts @ 0.29
$UVXY #ShortPuts – Sold UVXY DEC 4 2015 23.0 Puts at prices from 0.39 up to 0.42
#Earnings BTC $GME Nov 27th 34 puts for .05. Sold for .40 on Friday. Closed the calls for .01 yesterday so this completes the trade.
#SPXcampaign STO $SPX Dec 24th 2170/2195 call spreads for 1.25, with SPX at 2089. I now have sold one spread in puts and one in calls for the week… need one more of each.
Earlier this morning STO Dec 11th 50 Put @ 1.35. I will add lower and or further out strikes as appropriate. Otherwise I’m spending time out in the barn working on a small table. If I don’t pop back in between now and next week Have a Wonderful Safe and Thankful Holiday. Jon
STO Dec $100 puts @ $1.00
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Adding a few at the higher levels…will add more on any strength. Also short at much higher strikes and better premium.
Sold NUGT JAN 15 2016 35.0 Call @ 2.50
Sold NUGT MAR 18 2016 50.0 Call @ 2.80
Sold NUGT MAR 18 2016 55.0 Call @ 2.40
Sold NUGT JUN 17 2016 70.0 Call @ 3.30
STO Dec 11 $22 puts @ $0.50
So much for the SPX Confluence at 2077; I just got stopped out at 2072.30; so it didn’t work; maybe I placed the stop too close. Learning experience.
$DUST down 6.68% closed Dec 11 30 covered call early, 17DTE, at 0.34 at 65% profit will reload as appropriate