VIX indicator and the SPX chart have been updated
Daily Archives: Wednesday, October 5, 2016
SPX call spreads sold
#SPXcampaign STO $SPX Oct 28 2205/2230 put spreads @ 2.85 got in a little later than jeff and moved 5 pts up with SPX @ 2160. Makes this an Iron Condor with 2000/1975 put spreads 1.35 sold Sep 26.
Thanks, Jeff.
NUGT-a current picture of volatility drag
Volatility drag, volatility tax, slippage or whatever else we call it shows up in leveraged ETFs and becomes more apparent the longer the timeline. But the recent implosion in $NUGT is allowing us to see how this effect can play out in a shorter time window:
Using the instrument from which $NUGT is derived, $GDX, if you measure the % gain it would have to achieve to get back to its highs (from around 23.70 right now to about 31.80 on 8/11-8/12) it calculates to around 34%.
If you take 3x the 34% (=102%) that would only get $NUGT back to around 26.25, nowhere near its corresponding high from 8/11-8/12 of 35.80. For NUGT to get back to its August highs from its current level around 13, it would need to add 175%.
This is one of the reasons I’ve been aggressively selling calls at strikes near the August highs on big moves up. It will be very difficult (and will require a much bigger corresponding move in gold and the miners) for $NUGT to challenge old highs.
SPX calls sold
#SPXcampaign Sold an extra call spread above all time highs:
Sold to Open $SPX Oct 28th 2200/2225 calls for 4.50, with SPX at 2163.
$NUGT closing my BuPS Oct…
$NUGT closing my BuPS Oct 07 17/13 for complete loss.
What if’s? From cnbc…a plan…
What if’s? From cnbc…a plan that would bring “2.5 trillion in corporate cash comes home” http://tinyurl.com/zaul7zj brokered by S&P Global.
SPX call spread sold
Nov wk1 SPX 2225/2250 call spread sold for $1.60 when SPX at 2161
Closing some NUGT weekly calls early
Bought to close $NUGT Nov 4 29.00 calls @ .10. Sold for .85 on 9/28.
Bought to close $NUGT Nov 11 29.50 calls @ .10. Sold for 1.00 on 9/30.
Something different!
Looking for something different and saw these two trades on TT. Plays on fading the energy sector.
Broken wing butterfly with XLE and sort of a broken wing iron condor with XOP.
I’m modifying the XOP iron condor for 42/40/40/39 for Nov expiration. This places the breakeven point above the 52-week high for XOP. Sold for 1.20 credit. Max possible loss is 0.80.
The XLE broken wing is interesting, but I’m gonna pass on that one.
Waiting for higher DUST strikes
In the meantime, I just sold some of the pre-split in Jan 2018, at the highest strike available (30, or the equivalent of 150 post-split with DUST at 48.50.
Sold $DUST2 Jan 19 2018 30.00 calls @ 1.50
SVXY
With 16 days to go, BTC October 21, 40 puts @0.05. Sold @ 1.05
SPX calls closed
BTC SPX Oct 7 2195/2205 for 0.20. Sold last week for 0.90.
Closing early as I don’t trust this market in either direction.
77% max profit, so what’s not to like about that anyway!
SPX puts closed
#SPXCampaign BTC $SPX Oct 14 2035/2010 puts @ .20 sold on Sep 26 @ 1.35.
$NUGT #ShortPuts – GLD is…
$NUGT #ShortPuts – GLD is actually flat on the day and GDX is only off a few cents after it’s morning rally failed.
Sold NUGT Oct 21 2016 10.0 Puts @ 0.55
Sold NUGT Nov 18 2016 9.0 Puts @ 0.85
The importance of Monday morning premium
#SPXcampaign On Monday in the first hour of trading, the market was down less than half a percent. I sold the Nov 4th 2235/2260 call spread for 1.40 on an uptick to 2162. 33 days until expiration.
In the first hour today, 31 days to expiration, our intraday high was just below 2162. The same spread topped out at about 80 cents.
I have seen this constantly with call spreads… Monday morning premium is highly elevated, and drops quickly by Monday afternoon. Provided there are no large moves in SPX, theta makes quick work of the premium. This is less dramatic with put spreads, and I have not tested it as much with different expirations (just the 30-35 DTE range).
This is why that I sold that call spread even though the market was down.
$NUGT #ShortPuts – sold these…
$NUGT #ShortPuts – sold these when NUGT broke back under 13 after it’s small morning rally –
Sold NUGT Oct 7 2016 11.0 Puts @ 0.30 – these expire Friday
Sold NUGT Oct 28 2016 10.0 Puts @ 0.70
Sold NUGT Nov 4 2016 10.0 Puts @ 0.90
$NUGT #ShortCalls – Bought to…
$NUGT #ShortCalls – Bought to close NUGT Dec 16 2016 52.0 Calls @ 0.05. They can’t trade any lower.
Sold on 8/26 @ 1.45.
Concerned about Deutsche bank? Here…
Concerned about Deutsche bank? Here is an interesting article…
http://tinyurl.com/zr3feex
Options Bistro 