#Markets – remember that the markets are closed on Monday. Only a 4 day trading week to bleed premium away faster
Daily Archives: Thursday, February 11, 2016
GOLD
Just wow. No end in sight. Few Call spreads and a June 72 call hurting, but broke even on the day because I bought a 1300 next week /gc call@1.70 last night and sold it today @10.90
Ironically, it matched the loss I have in a few of my NUGT position to give me a break even day in gold.
1400 in gold seems probable soon at this rate.
$VIX earlier today closed a…
$VIX earlier today closed a 21/26 BuCS, made about 2.50.
$SWHC #coveredcalls followed somebody from yesterday, can’t find his post, Feb. 19, 23 covered call for 21.19
This is Smith and Wesson
The Nasdaq Composite is now…
The Nasdaq Composite is now up for the day
Unreal.
Closing some KOLD positions
Today’s action really strained buying power so I closed these positions for nice profits instead of waiting for expiration. The margin requirements for this ticker are large enough that it freed up a good chunk of buying power.
BTC $KOLD Feb 19 320 call @ .77 (sold for 10.00 on 12/22)
BTC $KOLD Feb 19 270 calls @ .75 (sold for 1.40-2.70 from 1/14-2/2)
BTC $KOLD Feb 19 250 call @ .90 (sold for 4.00 on 12/30)
BTC $KOLD Feb 19 220 call @ 1.50 (sold for 4.20 on 1/6)
SPX calls
#SPXcampaign Sold to Open $SPX Feb 29th (monthlys) 1950/1975 call spreads for 1.45.
OPEC reportedly ready to cut…
OPEC reportedly ready to cut output = bounce
$UVXY $VIX
$VIX above $30, $UVXY above $60. A lot of fear in the air.
FB mgt
#Earnings #ShortStock Sold to Open $FB March 4th 110 calls for 1.00 and April 1st 112 call for 1.75. Also, BTC Feb 12th 110 put for 9.20. This is management against my short stock position… sold too many puts when it was above 110, so backing out of some to hold the short stock for lower prices.
$UVXY
STO Feb 19 $100 calls @ $0.50 Expire next friday
$UVXY
$UVXY Sold Mar 4th 95/105 bear call spread in my IRA @ 0.80 when UVXY was at 59.24 @11:05 AM. I’m staying short term because I will be traveling early March and small to control risk. Mostly cash in the trading account.
$XBI
Went positive on the day
$LNKD #ShortPuts – Bought to…
$LNKD #ShortPuts – Bought to close 1 LNKD Feb 12 2016 100.0 Put @ 1.00. This went in the money this morning so I’m not going to gamble in this market environment. Still made some money on the trade.
$DIS
Strong on a weak day. Been working higher since the open.
SPX trades
#SPXcampaign
Bought to close $SPX Feb 26th 2025/2050 call spreads for .20. Originally sold for 1.55.
Stopped out, March 4th 1700/1675 put spreads for 2.90. Originally sold for 1.25.
#ReverseRoll Sold to Open SPX March 4th 1960/1985 call spreads for 1.45.
Selling a call spread on a 2% down day, you ask? Yes! Call spreads are working without fail. I will definitely sell more with any bounce higher today and every day there’s a bounce, but currently I have stopped selling put spreads more than a few days out.
UVXY call spreads
Adding one to an existing position…
Sold UVXY JUN 17 2016 80/100 Bear call spread @ 3.00
TSLA, sold the Junr 200 calls for 7.00
We are now at the…
We are now at the Jan 20th lows.
$UVXY #Roll
Rolled Feb 12 $60 Calls to Feb 26 $85 calls for $.35 credit
BA trades
Rolled Feb 110 put out to Mar for 2.20 credit
Bought to close $BA Feb 19 110 put @ 4.85
Sold to open $BA Mar 18 110 put @ 7.05
Also sold an April put (15 delta)
Sold to open $BA Apr 15 90 put @ 1.95
The stock hasn’t been at 90 since May 2013
SPX one-day trade
#SPXcampaign Sold to Open $SPX Feb 12th 1770/1745 put spreads for 1.40. Expires tomorrow. Also still sitting on 1790/1765 spreads, which are a bit of a nail biter.
$NUGT
STO Feb 12 $45 puts @ $0.85 expire tomorrow
Rolling TZA
Rolled Feb calls out to March 4 weekly for 1.35 credit
Bought to close $TZA Feb 19 70 calls @ 4.84
Sold to open $TZA Mar 18 72.50 calls @ 6.19
Rolling TLT
Rolled Feb calls out to March for .69 credit
Bought to close $TLT Feb 19 129 calls @ 4.96
Sold to open $TLT Mar 18 129 calls @ 5.65
UVXY short-term
#VXXGame This is a trade that has been working for 5 weeks straight. On Thursday or Friday, use any spikes in $UVXY to sell calls expiring the following Friday (7 to 8 days DTE) about 25-30 points above current price. Then continue to add more on Monday or Tuesday if there are more spikes. I have this week’s 70 calls that should expire tomorrow, sold between .50 and 1.10. I usually end up with 7-10 contracts around .70-.80 avg price, so a nice $500-$800 gain each week. There will likely be a week where we get a much bigger volatility spike, and this trade will have to be rolled or closed with a loss. But as long as VIX remains orderly, this is working. This morning…
Sold to Open UVXY Feb 19th 85 calls for 1.07. I missed the highs but will sell more if we go higher, or move to a lower strike if UVXY drops.
$UVXY $VXX
STO $UVXY Mar 4 $105 Calls @ $2.37
STO $UVXY Mar 11 $105 Calls @ $3.81
STO $UVXY Mar 28 $95 Call @ $6.60
STO $VXX Apr 15 $45 calls @ $1.50
UVXY adding at highest strike
Sold $UVXY Mar 24 105 call @ 5.00
#VXXGame
TLT trade
#LongCalls I wish I had purchased more of these; the Jan 123 calls were a nice profit, but these are a home run. Peeling off one now in case this morning was a short-term high.
STC $TLT Feb 19th 123 call for 11.25. Bought in Dec for 2.00.
New low in SVXY
Breaking it’s most recent low of 31.90 on 1/20/15; Lowest since Jan 2013
#VXXGame
Today’s SPX supports: Intermediate Supports…
Today’s SPX supports:
Intermediate Supports at 1820-27 and 1806-10 which are 61.8% extensions from previous moves.
Also at 1820 which is from the low of 10/15/14
and 1812 from the low of 1/20/16
As you can see there is a lot of support around the 1820-1810 area.
There is also a major support is at 1803 which is the 38.1% Fib Retracement from low of Jun 4 2012…to high of May 20 2015….
and 1780 which is the 61.8% extension of the previous down move from Dec 29 15 to Jan 20 16.
Below those tighten your seat belts.
Watch the 8 period stochastic, if it starts turning up at any one of these levels it is normally a sign that the level might hold for at least today….
#Gold
Is definitely trading as safety trade now. Decoupled from inflation fears (none) or correlation to currency. People are moving to gold and bonds as places to hide.
Options Bistro 