$UVXY #ShortCalls #VXXGame – Sold UVXY Dec 11 2015 55.0 Calls @ 0.22
edit:
ZZZZZ….. this market is putting me to sleep
Daily Archives: Monday, November 30, 2015
STO SPX 2030/2020 This Fri…
STO SPX 2030/2020 This Fri .75 to complete IC
#VXXGame – Volatility-products + prayer…
#VXXGame – Volatility-products + prayer
http://statisticalideas.blogspot.com/2015/06/volatility-products-prayer.html
$SVXY not digging it right now.
$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…
UVXY puts
#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.
ULTA AMBA Earnings
#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.
STO SPX Dec1 (this Fri) 2120/2130 1.10
Now will add put side
Short options, Margin, and retirement accounts
I got this question over the weekend:
Question:
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.
Answer:
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…
#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.
$BOIL – Taking one for the (long nat gas) team
#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
NUGT – It just keeps working (going down)
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
KOLD puts
#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
AGQ ZSL – C’mon silver…you can do it!!
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
SPX iron condor bonus/roll
#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.
NFLX puts
#ShortPuts – Adding to a hedge against some short calls…
Sold NFLX DEC 4 2015 123.0 Puts @ 1.65
TZA short call spreads
#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…
SPX spread closed
#SPXcampaign BTC $SPX Dec 11th 2175/2200 call spreads for .10. Sold for 1.35 on Oct 23.
CNBC Now @CNBCnow BREAKING: Pending…
CNBC Now @CNBCnow
BREAKING: Pending home sales up 0.2% vs. up 1.5% est.
#SPXcampaign STO $SPX JAN4 16…
#SPXcampaign STO $SPX JAN4 16 (1/22/2016) 1875/1850 BuPS @1.45
$SVXY #CoveredCalls
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.
Covered calls in SVXY
Sold $SVXY Dec 24 (weekly) 65 calls @ 1.25
SPX call spread
#SPXcampaign STO $SPX Dec 31st 2175/2200 call spreads for 1.50.
Good morning…
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.
Options Bistro 