/VX VIX futures

Bringing this to the top from my reply below…just thinking out loud tonight.

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Funny you should mention VIX futures…I think I’m going to quit shorting UVXY naked calls and concentrate on the futures. I believe a person could short a few contracts each time it spikes above 25 and do pretty good much more safely without the constant UVXY spike worry.

A VIX future trades at a value of 50 dollars per tick with each tick being .05 This makes them worth 1000 dollars per point. Instead of sitting year round with big short UVXY exposure just wait until the 2 or 3 times a year we get a spike in the VIX futures 20-25 range and short a few. Imagine shorting 5 of those in late August and catching about 10 points of the move. Seems a lot safer without the constant black swan risk.
Of course your account would have to be able to withstand the daily mark to market of the futures if you short to early plus margin of about 6000 per contract.

I have to learn to…

I have to learn to stop buying and concentrate on selling.
Expiration/Close Outs
BTC $TWTR 12/18 $28P at $3.4 sold at $1.3
BTC $NFLX 12/18 118P at .1 sold at $1.4
STC $FB 12/18 BUCS 100/110 at $6.5 bought at $4.3
BTC $ISIS 12/18 BUCS 70/90 at $1 bought at $6.7
BTC $TSO 12/8 BUPS 105/110 at $4.39 sold at $.75

Trades
STO $UVXY 12/24 $27P at .8
STO $ISIS 12/31 $58P at 2.35
STO $NFLX 1/15/2016 100/110 BUPS at $2
STO $SCTY 1/15/2016 65C/35P strangle at $2.05
STO $SVXY 12/24 $40P at $.45
STO $UVXY 12/24 $23.5P at $.16
STO $KOLD 1/15/2016 $255C at $13.6 thanks iceman
STO $AMZN 1/15/2016 590/600 BUPS at $.9
STO $SVXY 12/24 $50C at $3.3 (covered)
STO $CEMP 1/15/2016 $35 at $.8 (covered)

See you Monday…

Friday’s move lower indicates volatility is ruling the month… but will it continue in the typically lower volume weeks remaining? Will the underperforming hedge fund and mutual fund managers be scrambling to make up for bad 2015 performance?

Options Expiration for 12/18

#OptionsExpiration

Expiring:
$AAPL 12/18/2015 100 puts
$AAPL 12/18/2015 105 puts
$AMZN 12/18/2015 615 puts
$APA 12/18/2015 60 calls (covered)
$BOIL 12/18/2015 30 calls (covered)
$CMG 12/18/2015 475 puts
$CRI 12/18/2015 85 puts
$CRI 12/18/2015 87.50 puts
$CYBR 12/18/2015 35 puts
$DUST 12/18/2015 25 calls (covered)
$DUST 12/18/2015 30 calls
$DUST 12/18/2015 35 calls
$GMCR 12/18/2015 60 puts
$KOLD 12/18/2015 185 puts
$KORS 12/18/2015 45 calls (covered)
$NSC 12/18/2015 75 puts
$NUGT 12/18/2015 35 calls
$SVXY 12/18/2015 75 calls (covered)
$SVXY 12/18/2015 70 calls (covered)
$SVXY 12/18/2015 45 puts
$SVXY 12/18/2015 40 puts
$TRIP 12/18/2015 60 puts
$URI 12/18/2015 65 puts
$UVXY 12/18/2015 70 calls
$UVXY 12/18/2015 80 calls
$UVXY 12/18/2015 95 calls
$VRX 12/18/2015 85 puts
$VXX 12/18/2015 44 calls
$WHR 12/18/2015 130 puts
$ZSL 12/18/2015 65 calls
$ZSL 12/18/2015 67.50 calls
$ZSL 12/18/2015 70 calls
$ZSL 12/18/2015 77.50 calls

Assignments (stock being called away):
$GMCR 12/18/2015 55 calls

Assignments (going long stock):
$KMI 12/18/2015 35 puts

Have a great weekend everyone.

UVXY after hours

#VXXGame filled at 4:12 ET

STO $UVXY Dec 24th 50 calls for .67
STO $UVXY Jan 15th 150 calls for .85

Options Expiration 12/18/15

#OptionsExpiration

Expiring with 100% profit:
$SPX 2145/2170 call spreads
$AZO 700 puts
$BOIL 25, 30, 65 calls
$DUST 30 call
$FDS 155 puts
$KOLD 170, 185, 195, 200 puts
$UVXY 20 puts
$VLO 72 call
$VLO 67.5 put (covered)
$ZSL 65 and 67.5 calls

No assignments.
Oh, what do we have in store for the coming weeks?

Calm dump?

As much as $SPX was dumping at the end, the $VIX was pretty calm.

#OptionsExpiration

Today’s expirations, don’t have many left, took profits on most positions earlier in the week.  Will be away from the computer for the rest of the day.  Have a great weekend everyone.

$BOIL $30 calls

$KOLD $100 puts

$KOLD $110 puts

$UVXY $25 puts

TLT long

#LongOptions BTO $TLT Jan 15th 123 calls for 1.69
BTO $TLT Feb 123 calls for 2.50

Small positions, but long calls in TLT paid me well in past corrections.

UVXY puts

Just gotta take the gains on this in such a short time since it was a decent size position.

Bought to Close UVXY DEC 24 2015 27.0 Puts @ .43 (sold for .82 this morning)

SPX closed

#SPXcampaign BTC $SPX Jan 14th 1875/1850 put spreads for 2.15. Sold yesterday for 1.25. I am not carrying any bullish index positions through the weekend.

Hedge

BTO $VIX Jan 19th 19 calls for 3.00

$SVXY #ShortPuts – Sold SVXY…

$SVXY #ShortPuts – Sold SVXY DEC 24 2015 41.0 Puts @ 0.46 on a market order. These expire in 4 days with the strike price below the recent low

$SVXY #ShortPuts – Bought to…

$SVXY #ShortPuts – Bought to close SVXY Dec 18 2015 50.0 Puts @ 1.85 to avoid assignment.
Originally sold in April at 3.90.

$SVXY #ShortPuts – Bought to…

$SVXY #ShortPuts – Bought to close 1 SVXY Dec 18 2015 50.0 Put @ 1.95 to avoid assignment. Originally sold in July at 3.70.

$DUST

STO Jan 15 $25 calls @ $.70

Had to dip my toe.

$IYT #ShortPuts – Bought to…

$IYT #ShortPuts – Bought to close IYT DEC 18 2015 135.0 Puts @ 1.95 to avoid assignment. Originally sold at 3.18

Feed a KOLD, starve a BOIL

#ContangoETFs #Rolling $KOLD calls while KOLD puts and $BOIL calls expire today.

BTC KOLD Dec 200 calls for 13.20
STO KOLD Jan 255 call for 13.60
STO KOLD Feb 300 call for 16.00

UVXY

Sold to open January 2017, 170 call @10.70 adding to position but staying small.

BTO LNKD BF Dec4 227.5/217.5/207.5 Puts 2.48

also did STO Jan5 $UVXY 25/20 BuPS 1.90

$UVXY

STO Jan 15 $150 calls @ $1.50

WHR Short Puts

Borrowing a page from Iceman’s falling knife playbook.
Sold $WHR Mar 18 2016 110 put @ 1.26. I’ll take the stock at the strike in March if it comes down another 25% from these levels. Stock hasn’t traded at 110 in 2 1/2 years.
This replaces a 130 put expiring today. I’m also short a January 120 put. I keep selling out of the money puts on this stock and they keep expiring.

$KOLD #ShortCalls – Sold 1…

$KOLD #ShortCalls – Sold 1 KOLD May 20 2016 320.0 Call @ 23. Adding to my position at the top of the chain.

$UVXY #CoveredCalls #VXXGame – sold…

$UVXY #CoveredCalls #VXXGame – sold all these using market orders. Short trading week and the strike prices are above the recent peak.

Sold 1 UVXY Dec 24 2015 44.0 Call @ 1.29
Sold 1 UVXY Dec 24 2015 44.5 Call @ 1.28
Sold 1 UVXY Dec 24 2015 45.0 Call @ 1.24
Sold 1 UVXY Dec 24 2015 46.0 Call @ 1.10

$UVXY STO BuPS Jan. 31…

$UVXY STO BuPS Jan. 31 25/20 for .84-idea came from here-thanks

$UVXY #ShortPuts – sold the…

$UVXY #ShortPuts – sold the following to replace the strike 27 puts I just bought back at a penny.
Sold UVXY Dec 24 2015 23.5 Puts @ 0.14
Sold UVXY Dec 24 2015 24.5 Puts @ 0.29
These expire Thursday in a short trading week.

$UVXY #ShortCalls #VXXGame – Sold…

$UVXY #ShortCalls #VXXGame – Sold UVXY JAN 15 2016 85.0 Calls @ 1.50.

$DOV #ShortPuts – Bought to…

$DOV #ShortPuts – Bought to close DOV Dec 18 2015 60.0 Puts @ 0.50 to avoid assignment.
Originally sold at 1.30

STO IBF Dec PCLN 1290/1300/1300/1310…

STO IBF Dec PCLN 1290/1300/1300/1310 for 8.80 Day Trade

$UVXY #RiskManagement – Bought to…

$UVXY #RiskManagement – Bought to close UVXY Dec 18 2015 27.0 Puts @ 0.01.
Originally Sold on 12/14/2015 at an average of 0.50.

UVXY puts

Just a starter for now hoping to add more. Seems like decent premium even with UVXY up a little. These are margin free and replacing a bunch of 27’s from this week.

Sold UVXY DEC 24 2015 27.0 Puts @ .82

SPX calls closed

#SPXcampaign BTC $SPX Dec 24th 2110/2135 call spreads for .20. Sold for 2.00 last Friday as a #ReverseRoll from stopped put spread. This spread got up above 4.00 on Wednesday after Fed.

UVXY calls

Treading carefully. I have high offers in on some of the January weeklies. Just got filled on this one.
Sold $UVXY Jan 22 (weekly) 80 call @ 1.80. Highest strike.

#VXXGame

$AMZN iron condor

STO Dec 24 710/700/630/620 for 1.50
AMZN has been rather range bound and no real stimulus for it up or down in the next week.

FDX earnings butterfly

#Earnings #ironbutterfly
BTC $FDX Dec 18th short 149 puts & calls for 1.45. Sold on Wednesday for 4.15, so 2.70 profit. Thanks for the idea, @mortlightman!

$UVXY #RiskManagement – Bought to…

$UVXY #RiskManagement – Bought to close UVXY Dec 18 2015 26.5 Puts @ 0.01.
Originally sold on 12/14/15 at 0.35/0.40/0.45

$SVXY

BTC Dec 31 $64 calls @ $0.05

$UVXY

STO Dec 31 $56 calls @ $1.00

Quadruple Witching could add to Volatility

The exceptionally large Open Interest in options expiring this week could increase volatility on Friday and move stocks lower. It could also move them higher, but given where Futures are before the open, down seems to be the new black. As our VIX Indicator is currently under FOUR warnings (see side bar on the right), the risk is to the Downside.

The massive expiration was explained further on Fast Money last night: http://www.cnbc.com/2015/12/17/a-massive-expiration-has-traders-on-edge.html

#futures