Today, we had SKEW above 135 again… third time since Brexit. Will it mean something this time?
VIX daily chart in a squeeze
SPX in a daily squeeze
SPX monthly chart in a squeeze… that doesn’t happen often, but previously it was followed by corrections, like the 2001-2003 decline and the 2008 crash; or followed by sustained rallies, 2012-2015, 2005-2007, and 1995-2000 massive rally.
Daily Archives: Thursday, August 18, 2016
$NUGT STO Aug29 $165C for…
$NUGT STO Aug29 $165C for $8 covered by stock bought at $163
Also STO Sep09 $175C for $10.90 covered by $175 stock. Stock price is mid-range so maybe goes up and wish I waited to sell or maybe down and BTC for profit.
SVXY roll
BTC August 19, 56 call and STO December 62 call for a credit of 0.40 cents.
NFLX rollout
Rolled $NFLX short calls up and out for .48 credit.
Bought to close $NFLX Aug 19 95 calls @ 1.57
Sold to open $NFLX Sep 23 100 calls @ 2.05
SPX calls sold
#SPXcampaign Sold to Open $SPX Sept 15th 2235/2260 call spreads for 1.45, with SPX at 2185.
$SVXY #CoveredCalls #Rollup – one…
$SVXY #CoveredCalls #Rollup – one of many rollups I’m doing in various accounts for SVXY.
Bought to close SVXY Aug 19 2016 64.0 Calls @ 8.84
Sold SVXY Sep 30 2016 68.0 Calls @ 9.14 for a 0.30 Credit plus 4 points on the strike price.
The new strike price is still in the money with the stock at currently 72.70 and the breakeven for the new short call is at 77.14, well above the YTD high on the stock.
As I said last week, in this account I’m using a 3:1 overwrite strategy with an #OptionLadder approach. So if SVXY collapses again I’m not likely to get hurt to the downside unless the stock stays down for more than 6 weeks. In most cases for each individual week, I only have calls outstanding on 50% of my long stock. I roll that position each week out to a week that I have no exposure in, at successively higher strike prices.
At some point I will start letting some of my stock go and switch to selling puts. But for now this is working.
LOW stock assigned
#Earnings #Assignment I was assigned $LOW stock last night from my 79.5/81.5/83.5 iron butterfly…. kind of unusual to be assigned from short puts that are part of a spread, but it happened to about 3/4’s of my position. Today I sold the long puts for 2.92, so combined with the 1.48 at which I sold the IBF, my cost basis on the stock is 77.10. A reasonable position. I may sell the remainder of the longs and take the rest of the stock on Friday.
SOME TRADES:
$UVXY BTC 8/19/16 27.5 CALLS @.01
$UVXY STO 8/26/16 24.0 CALLS @.42
$UVXY STO 8/26/16 25.0 CALLS @.40
$UVXY STO 8/26/16 28.0 CALLS @.44
$UVXY STO 9/2/16 23.0 CALLS @.46
$UVXY STO 9/2/16 29.0 CALLS @.42
#Covered Call Scan
My daughter is trying to develope an understanding of trading and the option world. She has a small account and level 1 option trading, covered calls only. I Have put together a TOS scan that I use for ideas for her. I am looking for other scan criteria and a critique of this scan if anyone cares to chime in.
Currently I am using: And these vary a bit as results dictate.
Stock Last $10-$22
Stock Volume > 400,000
Option Percent of Underlying 2%-5%
Days to OpEx 20-50
Open Interest: >100
Volume: >100
Earnings Does not have in 36 bars.
This piscked up some of the OMM trades which gives me hope. She has some gold and oil so I passed these tickers by. A couple that look interesting are $CY, $TCK,
$FEVE
Rolled my Aug 19th 16 Put out to Sept 16 Put for a 0.31 credit.
$UVXY
Looks like I missed a trade yesterday. After the Fed minutes came out:
STO Aug 26 $27 calls @ $0.40
$VIX – apparently all is…
$VIX – apparently all is right with the world and new highs are coming, as the VIX index collapses back below 12. I don’t get it
WUBA opened low sold Sept…
WUBA opened low sold Sept WUBA put for 3.42, bought yesterday for 1.16, still have Sept 60 call I bought for .90, now worthless. I was expecting WUBA to go higher a la BABA, the put was a hedge, got lucky.
SVXY
On the weekly chart I see a head and shoulders bottom that measures up to 95/100. Just my humble opinion and I have been wrong before.
Options Bistro 