$SVXY $NUGT $XOP $CMG – selling OTM options to generate cash
Sold CMG Mar 11 2016 440.0 Puts @ 0.25 (covered)
Sold NUGT Apr 01 2016 28.0 Puts @ 0.40
Sold NUGT Apr 08 2016 30.0 Puts @ 1.00
Sold NUGT Apr 15 2016 30.0 Puts @ 1.35
Sold NUGT Jun 17 2016 15.0 Puts @ 0.60
Sold SVXY Sep 16 2016 60.0 Calls @ 1.75 (covered)
Sold XOP Apr 01 2016 32.0 Calls @ 0.28
Sold XOP Mar 18 2016 31.0 Calls @ 0.16 (covered)
MCD is on a squeeze; Earnings in 43 days. Possible up move since it is on a daily and weekly squeeze. There is a likelihood of an increase in IV due to earnings.
So I BTO the Apr 22 MCD 116 Call at $5.27.
Market up and gold pops too.
#SPXcampaign Sold to Open $SPX April 8th 2090/2115 call spreads for 1.25.
#ContangoETFs STO NUGT Mar 24th 37 puts for 1.00
BTC NUGT March 18th 15 put for .05. Sold for 1.40 on Oct 16th
BTC NUGT March 11th 37 puts for .05. Sold for 1.125 avg price in Feb
BTC SPX Apr 1 2090/2110 call spread for 0.50. Originally STO on 3/4 for 1.40.
64% of max profit. Freeing up some buying power.
Taking some #VXXGame trades off at over 95% max profit.
BTC $UVXY 3/18 110 call @ .02 Sold for 2.60 on 2/3
BTC $UVXY 3/24 80 call @ .14 Sold for 5.15 on 2/5
BTC $UVXY 3/24 95 call @ .08 Sold for 5.30 on 2/9
BTC $UVXY 3/24 105 call @ .06 Sold for 5.00 on 2/11
FB earnings are 42 days from now. So to take advantage of the increase in IV I bought a Diagonal.
BTO Apr 22 FB 103 Call and STO Apr 1st FB 110 Call for $5.67
#Earnings BTC $PNRA March 18th 220 call for .80. Sold yesterday for 2.55. This one spiked then collapsed two days in a row. Maybe I can do this again before expiration.
I am short the March 60 puts as a rollout from an earnings trade gone bad. I sold the March 55 and 60 calls to bring in premium. Both of those are in the money now, but the 55 call had very little time premium so I rolled it to April for 1.30 credit.
Still a lot of time value left in the remaining March positions (basically an at the money straddle right now) so I will wait to see which way the stock breaks to determine my next roll.
Even though gold is at the same price as yesterday $1266 +/-, the gold miners seem to be getting caught up in the $XME sell off today, so definitely diverging from gold today
#EDIT Hey, how do we edit a post, AGAIN? ;>)
AN EXPERIMENT: I usually don’t do strikes close to stock price like this, but wanted to get a better “feel” for the stock, my paying to learn theory,
$NUGT STO 3-11 52.0 PUT @1.13. Just one. It’s also easy to roll out.
STO Apr 1st USO 10 Calls at $0.55; I have some Apr 1st 8.5 Puts so this closes the short strangle. I’ll buy stock if USO goes over 10.25 to cover.
Yesterday BTO Mar 18 31/29 DIG put spread for 0.65. Out today for 1.20 credit.
Did that yesterday, sort of as a whim, something different. Took the risk for 0.65 and it paid handsomely in less than 24 hours. Whew! Not sure I should do that again. @prvtrader, I should probably not have done that and your warning was greatly appreciated. Probably shouldn’t trade options on a whim, but this time it worked quickly. Hope is not a trading strategy and whims probably shouldn’t be either. Need to remind myself of that more often, even though this time it worked.
Just a starter…
Sold UVXY APR 15 2016 50/70 Bear call spreads @ 1.20
Added a little more…covered with next week’s 4’s @ 3.45
#ContangoETFs STO NUGT March 18th 45 put for 1.40
STO NUGT April 15th 30 put for .85
Or more accurately, down after earnings.
Sold $SHAK Apr 15 32.50 puts @ 1.00.
#SPXcampaign Sold to Open $SPX March 11th 1935/1910 puts spreads for 1.50. Expire this Friday unless I close out on next rally up.
Looks like $NUGT discovered gravity this morning.
Support:
1988 – 1990 Yesterday’s support
1974-78 (K-Node)
1953-59 (K-Node)
1933 (38.2% ret of rally)
1920 (161.8% of previous move down)
1909-10 (50% retracement of rally)
1886-90 (61.8% ret of rally)
Resistance:
2009-2010 (61.8% ret of last drop)
2020-2023 (78.6% ret of last drop)
2050-2055 (K-Node of several moves and ret)
2064-66 (78.6% ret of previous move down)
2080 – previous significant high.
K-Node is a level where several retracements lines and extensions converge.
STO Apr 29 SPY 206/201 BuPS for $2.45
$DIG – doing something a little out of character but think that oil has jumped a bit fast and should go back down. BTO vertical put spread. Mar 18 31/29 put spread for 0.65 when DIG trading at 31.10.
Sold $APA Apr 15 57.50 calls @ 1.20
#Earnings STO $FB March 24th 102 put for 1.25, against short stock position.
SPX 2005 seems to be formidable resistance.
Looks like I accidentally deleted a thread on $NUGT
Just took a huge drop on big volume.
STO $PNRA March 18th 220 call for 2.55. Also short the 210’s, sold this one on today’s spike.
$NUGT 3/11/16 STO NUGT 80.0 CALLS @1.60 Jeff’s trade. Thank you.
STO Apr 30 AAPL 107/110 BeCS for $0.68
#SPXcampaign Bought to close $SPX March 11th 1900/1875 put spreads for .20. Sold for 1.80 last Wednesday.
STO SPX Mar2 1900/1880 for .30 credit
FB much weaker than market
#SPXcampaign Unable to sense a true direction, betting that we don’t get a huge break up or down anytime soon. So selling a condor seems best. Will treat each side separately if threatened.
Sold to Open $SPX March 17th 1855/1880/2060/2085 iron condors for 2.20.
STO Mar 25 $95 call @ $2.10
STO Mar 25 $100 call @ $1.50
STO Mar 25 $105 call @ $1.50
Added Mar 11 $94 calls @ $.50
#ContangoETFs STO $NUGT March 11th 80 calls for 1.25
A week ago, all the talking heads were sure that the market was going to 1500; now they are sure that the market is going to go to new highs after this correction…Well, the possible supports are at 1962-60; 1933-30 and 1886-84. The 62-60 level is the 23.6% and if it bounces from there, it may try to push back and retest the 1999-2001 level….The same could be true for the 38.2% retracement…if it breaks through those two, then it will not be a correction, but possibly a continuation of the downtrend….
I wish I had a crystal ball!
$UVXY article supporting contango and UVXY, decent discussion in the comments. should we be keeping this a better secret?
http://seekingalpha.com/instablog/1165972-seth-golden/4849646-best-trade-decade-part-2
Introducing my Bertha Boo Boo
VIX indicator for Monday 3/7: Friday was the second close under the VIX’s Fib 78.6% retracement. Three of those in a row and the Downside Warning ends; it is currently in effect from these dates: 11/13, 12/3, 12/9, 12/14, 1/4, 1/7, 1/20, 2/8.
Monday’s signal levels, which would indicate further downside warning, are 20.88 and 25.60.
To nullify Downside warnings:
1) SPX above 2116.48 (Nov 3 high), or
2) VIX close below 16.93 for three consecutive days, or
3) New VIX low (below 12.80)
Upside Warning: VIX close below 16.93; one or two days is caution, third consecutive day is an Upside Warning.
Vertical Spreads Basics:
Vertical Spreads are Directional plays with predefined risk/reward, normally used as a stock replacement strategy.
Credit spreads have a greater probability of success but higher risk, while debit spreads have a higher reward/less risk.
Credit spreads are better when IV percentile is high while Debit spreads normally work best when the IVp is lower.
TastyTrades Vertical Spreads (credit or debit) Basic Concepts:
https://www.tastytrade.com/tt/shows/tasty-bites/episodes/trading-verticals-06-05-2013
Several other segments talking about credit spreads: (that is a lot of very good free informational education so take a look at it)
https://www.tastytrade.com/tt/search?utf8=%E2%9C%93&search=Credit+spreads&commit=Search
Credit Spread Optimal Setup: (this is a very important segment).
https://www.tastytrade.com/tt/shows/market-measures/episodes/credit-spreads-optimal-premium-levels-10-08-2015
We’ve been placing SPX credit spreads selling Delta 10 and utilizing a spread width from 10 pts. to 25 pts. The reason for this has been that the probability of success is greater the farther out we go; well, that is correct, but only when we hold the position to the end, win or lose.
However, on a Delta 10, 25 pts. spread on the SPX we risk $2,250 to make $150. So to avoid such a big loss, we mostly bail when the loss exceeds 2.5 or 3X the max profit. Once we do that the probabilities of success are not what we expect, but a lot less. So we are shortchanging and lying to ourselves believing that we are trading a high probability, non-directional strategy.
On the last link above, the guys at TT show the right way to trade this strategy.
They go out to 40-45 DTE and use a spread width equal to 2.5% of the price of the underlying and Sell at Delta 30 and get a premium greater than 20% of max loss.
On the SPX the spread width of 2.5% is 50 pts spread. 2000 X 0.025 = 50.
So with the SPX trading at 2000 as per Friday’s Mar 4th 2016 close, to sell a BeCS we will go to Apr monthly and sell the 2045 at $15.30 and buy the 2095 for $2.80 for a credit of $12.50.
Max loss = 5000 – 1250 = 3,750.
Prob. of Success = 3,750 / 5000 = 75%.
I believe this makes more sense.
What do you guys think?
Rolled $UVXY 3/4 $35 puts to 3/18 $34 puts for $.50 credit
Expiration Full Profit
$NUGT $75 calls
$SPXW 1910/1935 BUPS
Got Crushed
$SPXW
$SPXW 2000/1975 BECS
$SPXW 2005/1980 BECS
$UVXY below:
BTC Mar 15 $165 calls @ $.02 numerous sales, average price $3.65
BTC Mar 15 $110 calls @ $.02 sold for $2.50
BTC Mar 11 $80 calls @ $.04 sold for $3.25
BTC Mar 11 $90 calls @ $.03 sold for $3.36
BTC Mar 11 $105 calls @ $.04 sold for $3.81
closed down some puts for very small losses just in case volatility keeps dropping
Mar 18, $25 puts
Mar 25 $24 puts
$NUGT below:
STO Apr 15 $80 calls @ $10.00
STO Mar 11 $89 calls @ $.90 (was late to the party here, job got in the way today)
STO Mar 11 $45 puts @ $.50
STO Mar 11 $48 puts @ $.80
Would not have sold the puts as early as I did if I had any clue $NUGT was going to crater the way it did. $NUGT has proven to be difficult for me. I think many of us have gotten very good at trading $UVXY, it makes sense. $NUGT some day’s just leaves me feeling bewildered.
All of these expired worthless
$GDX $18 puts
$NUGT $30 puts
$NUGT $31.50 puts
$NUGT $35 puts
$NUGT $38 puts
$NUGT $40 puts
$NUGT $42 put
$NUGT $45 put
$NUGT $47 put
$NUGT $53 puts
$NUGT $80 calls
$NUGT $82 calls
$UVXY $95 calls
$UVXY $105 calls
Got shook out of $NUGT $70 and $75 calls today, closed for profits while I could.
Closed my $NUGT $65 for my only loss this week, that sucked, bad trade, I know better
#optionsexpiration
#OptionsExpiration for March 4
Expiring:
$NUGT 03/04/2016 75.00 calls
$TZA 03/04/2016 85.00 calls
$UVXY 03/04/2016 95.00 calls
No assignments this week.
Have a great weekend everyone.
— Expiring w/max profit —
AVGO 125/115 put spreads
NUGT 70 & 75 calls
NUGT 47 puts
UVXY 50 calls
Have a good weekend all!
$SVXY #CoveredCalls #RollUp – Rolled this position to next week to avoid assignment.
Added a point to my strike price plus got an extra 0.55 credit for the roll –
Bought to close SVXY Mar 04 2016 41.5 Calls @ 0.32
Sold SVXY Mar 11 2016 42.5 Calls @ 0.87
Bought to Close UVXY MAR 18 2016 60/75 Bear call spreads @ .13
Bought to Close UVXY MAR 18 2016 60/80 Bear call spreads @ .15
Definitely locked and loaded for the next spike!
$NUGT #ShortPuts #Scalp – Sold NUGT Mar 04 2016 58.0 Puts @ 0.15. These expire in an hour
$SVXY #CoveredCalls – Sold SVXY JUN 17 2016 53.0 Calls @ 1.67
$AZO closed the #earnings #ironcondor for .34, sold for 1.45 on Feb. 29, thanks Jeff
$NUGT #ShortCalls #Rolling – this is becoming tiresome –
Bought to close NUGT Mar 04 2016 35.0 Calls / Sold NUGT Jun 17 2016 41.0 Calls for a small credit
Bought to close NUGT Mar 04 2016 42.0 Calls / Sold NUGT Apr 15 2016 46.0 Calls for a small credit
#ContangoETFs Rolled up some puts…
BTC NUGT March 11th 35 puts for .05. Sold for 1.075 in Feb.
STO NUGT March 11th 48 puts for .70
STO NUGT March 18th 40 puts for .65
#ContangoETFs Funny how these calls only close on UP days with my GTC orders. I imagine it is because they are the only days when any bids are available.
BTC $BOIL June 27 calls for .05. Sold for 1.50 on Dec 28th.
Finished for the week…nothing expiring today as I closed some things earlier this week. So, I’m outa here until next week. Everyone have a great weekend and stay profitable! 🙂
#SPXcampaign Changed my mind and decided to roll into a new call spread. This one will have a short leash… stop will be at or before 2020.
Sold to Open $SPX April 1st 2040/2065 call spreads for 8.00, with SPX at 2008.
$AMBA continues to disappoint, disappoint me anyway. Sold March 11, 46 calls at .45…
UVXY approaching highs of the day despite SPX going sideways. Signaling a top?
Bought to Close UVXY MAR 11 2016 55/75 Bear call spreads @ .07 (sold for 1.10)
BTO TLT Mar 130 puts 2.76 STO Mar1 129.5 1.69 net cost 109.50 per
Carter BTO Mar 130 puts followed along and added short diag
#LongCalls Can’t justify holding $TLT long calls any more… closing down March 130 calls and April 133 calls, about 1.00 average loss on each. Short calls sold yesterday lessen that loss to below .80, and I will close those for pennies one of these days.
$DUST BTC 3/11/16 5.0 CALLS @.05
$DUST BTC 3/24/16 6.5 CALLS @.10
$ETE BTO STOCK @8.30 To cover short calls @8.50
$DUST BTO STOCK @ 3.43 Maybe a Buy/Write Jeff made me do it. His post that NUGT highest since July, gave me the idea. ;>)
#SPXcampaign Bought to close $SPX March 17th 2005/2030 call spreads for 11.00. Sold for 5.50 on Tuesday as a roll. That was a painful one I had to chase after missing this morning’s lows. With VIX going lower, I cannot roll up at this time. I have to save rolls for much higher SPX levels, or if VIX reverses upward.
No more BeCS…big loss…won’t even roll them to the upside…too much bullishness or short covering.
We’ll wait for the reversal.
STO Mar2 SPX 2020/2025 1.20
#Earnings #ShortStock STO $FB April 1st 100 put for .80. Selling against my short stock position. Earlier this week closed March 4th 110 short calls and 105 covered puts to avoid any possible assignment today.
STC – SPY 188 Apr 15 / 198 Mar 11 for $9.59 bought for $7.62
STC – IWM 99 Apr 8 / 104.5 Mar 26 for $4.96 Bought for $3.93
STC – SPY Apr 8 189.5 / Mar 26 199.5 for $8.18 Bought for $7.07
Rolled today’s 70 calls up and out to next week (Mar 11) 76 calls for 1.98 credit
Strength in GLD and NUGT for 2nd straight day could be signaling a market top? Highest point in NUGT since July
I feel more upside is in order no matter what the number was… yesterday was first day of VIX closing below the Fib 78.6%… this is a signal that downside risk could be ending… three consecutive closes below that line on the VIX (16.93) has historically meant a continued uptrend for weeks or months. But if we can’t hold VIX down there for three days, it could bounce into more volatility.
Options Bistro 