$WYNN #ShortPuts – Bought to close WYNN DEC 16 2016 60.0 Puts @ 0.01. They won’t trade any lower.
Out of the position 4 weeks early.
Daily Archives: Tuesday, November 22, 2016
SPX Puts Rolled
Bought to Close Dec 9th 2080 short puts, At 1.55, Previously sold on Nov 15 at 5.20
Sold to open Dec 9th 2140 short puts, at 4.30
Rolled the Delta 5 2080’s to a Delta 15 2140…
Closing FB
Closed for most of the max profit. With around 85% of the profit in a week, no sense waiting around over a month for the last 15% . Bought to close $FB Dec 30 105 puts @ .22 (sold for 1.60 on 11/14).
VXX game
BTC December 9 45 puts @0.05, sold @1.05. I am slowly getting filled on all my short put positions and will be ready to reload when we get a good correction. Now I am looking for some virgins to sacrifice so it will happen in January
Dow 19,000… first time ever!
/ES /VX pairs trade
#Futures I’ve been paper trading this for awhile and it seems to really work well. A low risk way to take advantage of contango all the time…not just during or after volatility spikes.
Looking at spot VIX as well as the futures…there is generally about a 2 point difference ($2000) between spot and front month and between front month and second month. As time passes with no volatility the front month future will gradually decrease to match spot while second month drops a similar amount (contango). If there is a volatility spike, spot will generally be the first to react with front month future lagging behind and second month future lagging even further behind since volatility is generally a short term phenomenon. Once spot exceeds front month we will be approaching a backwardation scenario.
So…with all that in mind, what’s the trade?
I’ve been shorting the front and second month futures against a similar number of short eminis. I keep a stop on the futures positions of 1.5 to 2 points higher and also sell a well out of the money put against the short emini. This allows 3 things to happen.
1. Drastically reduces risk on a volatility spike using the stops while continually cashing in on contango during long periods of low volatility.
2. If stopped out of the short volatility positions, the short /ES should make up for all the loss and probably more.
3. By selling the well out of the money /ES put I can still gradually raise my basis of the short /ES position but still give enough downside protection to make up for more than the volatility stop out loss.
Any thoughts or ideas are welcome. Still haven’t put the trade on in a real account. I probably will on the next decent volatility spike we get.
Happy Thanksgiving…just throwing some “food for thought” out there to chew on over the holiday weekend!
Use Hashtags!
I am ceasing the categorization of everyone’s posts and encouraging the use of hashtags. For the last year I have been going into my Admin screen to categorize everyone’s posts by strategy, such as #SPXcampaign or #VXXGame. But that’s simply too exhaustive now that more Contributors are signing up.
So, to help us in our search efforts and help newbies review trades under different categories, please try to use Hashtags in your posts. For Contributors, you will see common examples of hashtags in the window where you write your new post. In the right-hand column of the site, all members can see the “Most Used Hashtags” window for reference as well. Everyone can also use hashtags in the comments underneath posts.
So before posting, #Hashtag-It!
Closing this week’s NUGT strangle roll
Got a little lucky with this one since it stayed mostly in a narrow range between my short strikes the whole time the trade has been on. Bought to close $NUGT Nov 25 8/10 strangles for .15. Sold for 1.41 on 11/11 as a rollout from an expiring in the money 11 put. Able to close the position for an overall profit.
DE earnings IB
#Earnings #IronButterfly Sold to Open $DE Nov 25th 90/92.5/95 iron butterfly for 1.97. Max risk .53.
I don’t see a decent trade in GME, so unless anyone’s got a good idea I’ll be skipping it.
SPX Puts Rolled
BTC Dec 7th 2075 short puts at 1.15, Sold Nov 15th at 4.00
STO Dec 7th 2140 Short puts at 4.20
Rolled the 2075 Delta 4’s to a 2140 delta 15…
Executed as ES was at the 2192 low earlier
DUST roll
#ContangoETFs BTC $DUST Nov 25th 70 call for .05. Sold for 1.40 on Nov 11th
STO DUST Dec 9th 60 call for 3.50.
SPX calls rolled
#SPXcampaign #ReverseRoll
Bought to close $SPX Dec 2nd 2220/2245 call spreads for 3.50.
Sold to Open $SPX Dec 9th 2150/2125 put spreads for 2.65, 1.5x position size.
$SVXY
Sold Dec 16th 70 Put @ 1.10. I will roll this if needed. Have a great Holiday all and safe travels. I’m out for the remainder.
SPX puts sold
#SPXcampaign Sold to Open $SPX Dec 23rd 2085/2060 for 1.40, with SPX at 2202. Not waiting for a pullback because I’m not expecting one this week.
$DUST #ShortPuts – Sold DUST…
$DUST #ShortPuts – Sold DUST Dec 30 2016 31.5 Puts @ 1.40
Rolling SPX…
BTC Nov 25 SPX 2215/2230 for $1.35 Sold for $0.45 last week…
STO Dec 2 SPX 2230/2245 for $1.55….
This is the first Roll I’ve ever done. I hope I did it right!
Comments please.
$SVXY #ShortCalls – sold these…
$SVXY #ShortCalls – sold these this morning with the stock just over 85.
Sold SVXY Dec 16 2016 95.0 Calls @ 0.85
Sold SVXY Dec 30 2016 95.0 Calls @ 1.80
Sold SVXY Dec 30 2016 100.0 Calls @ 0.75
PANW puts
On the big post-earnings drop, sold $PANW Jan 20 125 puts @ 2.00
Options Bistro 