Closed for 18.60. Will look to replace with another aggressive spread tomorrow or next week.
Daily Archives: Thursday, November 5, 2015
SPX call spreads and NON-Farm Payrolls
I am planning to close at least one of my threatened SPX call spreads before the close, and it will probably be the ITM Nov 6th 2075/2100 that I sold on Monday. The reason is, if we move higher on the report, this spread will become completely ITM, cost 25.00 to close, and will be very difficult to roll (since you cannot get 25.00 for ITM spread that have time premium in them). If you followed me into that spread, consider this to avoid the chance of ending higher than 2100 tomorrow.
WEBINAR Link info – November 5, 2015
Hello, here is the link to today’s webinar! Please reply here if you haven’t yet signed up and would like to attend. There are a couple spots left. OR, if you signed up but now cannot make it, please reply as well.
Jeff Payne is inviting you to a scheduled Zoom meeting.
Topic: SPX Campaign Webinar
Time: Nov 5, 2015 2:00 PM (GMT-8:00) Pacific Time (US and Canada)
Join from PC, Mac, Linux, iOS or Android:
STMP Earnings Trade
Sold to open $STMP Nov 20th 60 puts for .90.
I haven’t traded this one before, and even though it is 16 days to expiration, the premium is jacked for options 20.9% OTM. It mostly has moved UP on earnings. Historical volatility shows we should see a huge drop in premium tomorrow.
| Biggest UP move: 27.7% | Biggest DOWN move: -16.1% | Average move: 16.4% |
| Aug. 6, 2015 AC | 27.74% |
| May 7, 2015 AC | 20.40% |
| Feb. 11, 2015 AC | 19.45% |
| Nov. 5, 2014 AC | 13.08% |
| July 30, 2014 AC | -8.31% |
| April 30, 2014 AC | -16.10% |
| Feb. 13, 2014 AC | -6.93% |
| Oct. 23, 2013 AC | 12.96% |
| July 31, 2013 AC | 9.45% |
| April 24, 2013 AC | 27.07% |
| Feb. 13, 2013 AC | -14.62% |
| Oct. 25, 2012 AC | 20.18% |
Selling Calls ZSL, DUST
Added more:
STO $BOIL March 50 call for 1.05
STO $BOIL March 30 call for 3.50. Not far OTM, I know, but this one is the perfect Contango ETF, always headed down.
DATA earnings trade
#Earnings Sold $DATA 69/99 strangles for 1.95. Over all of its earnings announcements (10):
| Biggest UP move: 17.2% | Biggest DOWN move: -10.7% | Average move: 9.3% |
These strikes are 17.9% OTM.
SPX Dec 4th (2nd) put spread
#SPXcampaign STO Dec 4th $SPX 1940/1915 put spreads for 1.25, with SPX at 2092. This is the second and final put spread for the week of Dec 4th. I have one call spread remaining to sell for that week… possibly wait for next week if we get no more upside move this week.
Adding NXPI puts
#Earnings I’m playing both sides of this after being assigned stock, and no watching it gyrate as it creeps its way back up. Sold covered calls earlier this week. Now today:
STO $NXPI Nov 13th 75 puts for .70
Selling Calls ZSL, DUST
Moves in the metals today giving opportunity:
STO $DUST Dec 18th 30 call for 1.00
STO $DUST March 18th 55 call for 1.25
STO $ZSL Nov 20th 120 call for 1.90
STO $ZSL Feb 150 call for 3.40
A Case For Caution for the Bulls
Good Morning – Thurs Nov 5
#Earnings Watching $FB, up on earnings, to settle down back below 107 by Friday’s close to collect best profits in the iron butterflys.
Reporting tonight of Fri morning with high IV: $DATA, $DIS, $MNST, $SWKS, $TRIP, $WTW. Let us know if you’re looking at these or others.
#SPXcampaign, another Dec 4th call spread may be obtainable on this pop up, but may wait for jobs report. Consider any spreads you have that are close or past their stops for closing today, as the jobs report could cause big movement at tomorrow’s open.
#ContangoETFs, Silver down again in pre-market, so call selling in $ZSL is getting juicier.
Options Bistro 