#OptionsExpiration for Jan 29
All of the following expired. No assignments this week.
$AMZN 01/29/2016 505 puts
$AMZN 01/29/2016 710 calls (covered)
$AMZN 01/29/2016 725 calls (covered)
$CMG 01/29/2016 400 puts
$DUST 01/29/2016 20 calls (covered)
$NUGT 01/29/2016 40 calls
$SPX 01/29/2016 1955/1980 call spreads
$TZA 01/29/2016 75 calls
Have a great weekend everyone.
$UVXY $60 calls
$UVXY $80 calls
$UVXY $81 calls
$UVXY $82 calls
$UVXY $85 calls
Had a very large number of contracts expire today, so as @Iceman mentioned, as these weekly’s expire my account just gets more an more prep’d to be aggressive on the next volatility spike. This market doesn’t seem to make us wait long for the next one.
$SVXY continues to suck the tail pipe, but $UVXY is kicking it. Bunch more expiring next week.
#OptionsExpiration #Weeklys #Jan29 – another successfuly week selling premium. The most fun was the #EarningsCompression trades on $AMZN.
Also got to profitably exit some stock ($APA and $WYNN) recently acquired via Put assignment. I’d rather be long more cash and less stock during this bear market.
— Expirations —
AAPL (Weekly) Jan 29 2016 89 Puts
AMZN (Weekly) Jan 29 2016 500 Puts
AMZN (Weekly) Jan 29 2016 505 Puts
AMZN (Weekly) Jan 29 2016 710 Calls
AMZN (Weekly) Jan 29 2016 720 Calls
AMZN (Weekly) Jan 29 2016 725 Calls
CMG (Weekly) Jan 29 2016 390 Puts
CMG (Weekly) Jan 29 2016 395 Puts (Covered)
CMG (Weekly) Jan 29 2016 400 Puts (Covered)
FB (Weekly) Jan 29 2016 84 Puts
NUGT (Weekly) Jan 29 2016 28.5 Calls (Covered)
NUGT (Weekly) Jan 29 2016 40 Calls (Covered)
URI (Weekly) Jan 29 2016 60 Calls (Covered)
UVXY (Weekly) Jan 29 2016 20 Puts
UVXY (Weekly) Jan 29 2016 23 Puts
UVXY (Weekly) Jan 29 2016 31 Puts
UVXY (Weekly) Jan 29 2016 80 Calls
UVXY (Weekly) Jan 29 2016 85 Calls
UVXY (Weekly) Jan 29 2016 95 Calls
UVXY (Weekly) Jan 29 2016 95.5 Calls
WMB (Weekly) Jan 29 2016 20.5 Calls (Covered)
WYNN (Weekly) Jan 29 2016 70 Calls
WYNN (Weekly) Jan 29 2016 72 Calls
— Assignments —
APA (Weekly) Jan 29 2016 39.5 Calls (Covered) Profitable exit
APA (Weekly) Jan 29 2016 40.5 Calls (Covered) Profitable exit
FCX (Weekly) Jan 29 2016 6.5 Puts – Going long some stock
WYNN (Weekly) Jan 29 2016 65 Calls (Covered) Profitable exit
Expiring with max profit:
$AMZN 515/710 strangles
$DUST 20 calls
$NUGT 35 calls
$FB 89/84 put spreads
$SPX 1955/1980 call spreads
$UVXY 60 calls
$VLO 64 puts
$VLO 74 call
#Assignments
$FB 102 calls, going short stock, cost basis 105 (did not play that one very well)
$VLO 67 puts, part of short stock position being covered
Have a great weekend everyone… I’ll be trading from Los Angeles next week!
$SPX Closed SPX Feb 12th 1625/1585 BuPS @ 0.10 Opened @ 1.25.
$WYNN #ShortCalls #Weeklys – Sold WYNN(Weekly) Feb 05 2016 73.5 Calls @ 0.64. Check out the 3-month chart. This strike price is at or above the highs since early November. One week until expiration.
$SVXY $UVXY – the volatility trader’s golden cross is when the price of UVXY drops below the price of SVXY. As long as that relationship holds, the #VXXGame should be profitable.
I’m content to sit with my existing UVXY short Calls to expiration or a closing price of a penny. As the weeklys roll off, week by week, the buying power in my accounts increases. and leaves me set up to begin selling aggressively on the next volatility explosion.
$DUST #ShortCalls – Bought to close 1 DUST Mar 18 2016 55.0 Call @ 0.05. Originally sold 11/18/2015 at 2.20.
$GILD Our old friend GILD down in the lower 80s, must think it’s an energy company, #earnings next week
Bought to close Jan 29 $SVXY 40 put @ 1.50 to avoid assignment today with the stock at 38.60. Sold for 5.70 on 1/15. This was a rollout from the 1/15 40 put I executed 2 weeks ago. Combined profit of 1.20 on both positions.
#Earnings Bought to Close $AAPL Jan 29th 100/95 put spread for 4.10. Sold as part of iron butterfly on Tuesday for 3.85, plus calls closed for .13 on Wednesday, so loss was only .38 + commission. Decent recovery saved us .75 today!
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Use a separate browser window and enter optionsbistro.wordpress.com/wp-admin. On the left you have multiple options for managing your posts, including “Posts/Add New.” Here you can add new Posts as you do on the normal site, but you also have access to many additional features, such as selecting Categories for your post, and also scheduling your post to appear at a later time (see “Publish immediately Edit” on the right).
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The 1915-20 level seems to have held…but, the SPX may go back up to retest that level.
$NOW STO Feb 19 60/50 BuPS for .92 pretty close to what I received for the earnings spread following Jeff. NOW dropped below 60 for a few hours and is up aroung 65 at this time.
$KOLD #ShortPuts – Sold 1 KOLD Feb 19 2016 115 Put @ 2.15. Paired with an existing short 215 Call for February, completing the strangle. Both expire in 3 weeks.
#ContangoETFs BTC $KOLD Feb 270 calls for .50. Sold for 16.50 on Dec 22nd
STO KOLD May 85 puts for 2.20
STO KOLD aug 70 put for 2.00
There is strong Resistance at 1915-20 Level….
Then is 1950 and 1978-80
#SPXcampaign Sold to Open $SPX Feb 26th 2025/2050 call spreads for 1.25
#SPXcampaign Bought to close $SPX Feb 5th 1750/1725 put spreads for .20. Sold on Monday for 1.50.
Sold $AMZN Feb 19 485 put @ 1.50
I plan to do a webinar on the placement, management, and closing of iron butterflys… look for it later this quarter.
For those of you who followed on the AAPL butterfly this week, the trade didn’t work out. However, the good thing about these trades is the risk/reward, so losses are minimal. You brought in a 3.85 credit when you sold the butterfly, so whatever you pay today to close will count against that.
First, realize that you sold two credit spreads: a 100/105 call spread, and a 100/95 put spread. Assuming we stay below 100, the call spread will expire worthless and requires no action (regardless of whether you closed the short calls on Wednesday). The put spread MAY require action.
If AAPL closes the day at or above 95.00, you WILL be assigned stock at 100.00 if you do not act. This is because the long 95 puts will expire worthless, but your short 100 puts will expire in-the-money. To avoid this assignment, buy-to-close the 100 calls. You can try to get the cheapest price to close by waiting later in the day and/or for AAPL to move higher intraday.
If AAPL closes below 95.00, your whole put spread will expire ITM. You can do nothing if you wish, and your broker will execute the options and you will be debited $500 per spread (buy the stock at 100, then sell it at 95). My broker charges nothing for this execution, so I often let these expire. But if your broker charges for it, you may want to close manually during the day, as commission charges are probably cheaper. Put in the order to close the spread for 5.00. You might be able to get a lucky fill for 4.90 or something.
The goal today is to try to get out for less than 5.00. You can do this with a lucky fill on the spread, or legging out based on the intraday swings. If it’s a bullish day, waiting until right before the close might be beneficial as all extrinsic value will drain out, and hopefully the stock will be near high of the day.
Feel free to ask further, I am here until about 10:30 PT, 1:30 ET.
#Earnings
Today my wife and I start the drive to Los Angeles to prepare our North Hollywood house for sale.
The last two times we drove to LA were October 2014, and late Jan/early Feb 2014. For those with fuzzy memories, a quick look at the charts shows what happened to the markets. I know there are so many traders who claim their travels cause the markets to dive…. I won’t claim that, but felt obliged to warn you.
I will still be trading next week and managing Bistro, although may not be as quick to respond.
Options Bistro 