Resistance for Tomorrow: 1960-62; 1977-1984; 2020-2023; 2031-32;
Support: 1897-96; 1880-79; 1863-62.
Daily Archives: Thursday, February 25, 2016
A Iron Broken Wing Butterfly…
A Iron Broken Wing Butterfly is normally a credit and it is made by selling A Call and a Put at the same (or close) strike and then buying the wings OTM….The difference between a regular Butterfly and the Iron Bfly is that on the regular Bfly you sell either 2 Calls or 2 Puts and then buy a lower priced Call or Put and a higher priced Call or Put. Normally the higher priced option ends up ITM and becomes somewhat difficult to close.
To make it into a broke wing, you can do either shorten the spread on one side or sell more spreads on one side than the other.
Hope this helps.
PANW pre-release?
#Earnings jumps 9% 20 minutes before close. Looks like trading halted.
STO SPX Feb 26 BWBF…
STO SPX Feb 26 BWBF 1935/1925/1920 for $8.10 Credit Max Loss is $190.
RLYP…down after earnings
March 17.5/15.0 BuPS completely in the money after earnings. Originally sold for 1.35 so with stock near low of the day I’m doubling down long on this thing. Sold to close the long 15’s for 1.40. This will give me the stock at a basis of 14.75 if it doesn’t recover and if it does recover by March expiration I’ll be bringing in twice the premium. Of course, if it goes to zero, I’ll be wishing I still had those 15’s!
$SPX call spread in 4/1
Sold $SPX Apr 1 2065/2090 BeCS @ 1.35.
Short strike is right in the middle of all that resistance from December.
Delta is 07, 1 standard deviation is 2058.
I’ll be pretty happy if I have to close this for a loss or roll it.
UVXY and NUGT mgt
Earlier today, made some adjustments for margin purposes…
BTC UVXY Feb 26th 60 call for .03. Sold for .30 yesterday
BTC UVXY Feb 26th 58 calls for .04. Sold for .35 yesterday
BTC UVXY Mar 11th 80 call for .34. Sold for 2.17 on Feb 2nd
BTC UVXY June 110 call for 4.50. Sold for 9.50 on Jan 25th
STO UVXY April 1st 29 puts for 1.50
STO NUGT March 11th 40 put for 1.55
STO NUGT March 11th 37 put for 1.05
$NUGT new highest strike in June
Sold $NUGT Jun 17 94 call @ 10.00. Newest highest strike.
Closing put spread in SPX
Bought to close $SPX Mar 11 1665/1640 put spread for .10. Sold for 1.30 on 2/5.
PANW earnings
#Earnings Sold to Open $PANW Feb 26th 110/115/144/149 iron condors for 1.55. Over its 11 past earnings reports, PANW’s Biggest UP move: 10.6%, Biggest DOWN move: -10.8%, Average move: 6.0%. These strikes are both 11.2% OTM.
BIDU earnings
#Earnings Sold to Open $BIDU Feb 26th 135/140/175/180 iron condors for 1.15. Over last 12 earnings, BIDU’s Biggest UP move: 11.0%, Biggest DOWN move: -15.0%, Average move: 7.8%. Short strikes are about 11% OTM.
Maybe a good day to…
Maybe a good day to go bottom fishing in the energy sector?
TSLA short put
Sold $TSLA Apr 15 120 put @ 1.30
SPX Support and Resistance Levels for Thu Feb 25, 2016
Support at 1916-17 and 1907-09 and then where it turned up yesterday at 1890-94….1897 is a 61.8% of the previous down move and 1876 is the 100% of that move.
Resistance is still at the 1945-47 level…for the SPX to move higher, it needs to break above this level…There is intermediate resistance at 1934-35 and 1939-41 Levels which could slowdown the SPX somewhat.
IMHO, today could be one of those boring days…good for Theta decay.
Options Bistro 