Jeff 7:08 am on Tuesday, January 10, 2017
Tags: CoveredCalls ( 2,200 ), Earnings ( 3,108 ), Long ( 10 )

FB covered calls

#CoveredCalls #Long Stock #Earnings
Sold the following after a pretty extended run on FB. The first two expire before Feb 1st earnings.
STO FB Jan 13th 126 call for .65
STO FB Jan 27th 130 call for .53
STO FB Mar 17th 140 call for 1.00

rck89 7:30 am on Tuesday, January 10, 2017

Yesterday (like a dummy), I BTC SPX Jan 13, 2288/2305 BuPS @ 3.5 db…sold @4.0cr. Would you put this trade back on or is too late? Your thoughts please, thanks.
- Jeff 7:31 am on Tuesday, January 10, 2017
  
  I think you got the strikes wrong.
  - rck89 7:41 am on Tuesday, January 10, 2017
    
    Fat fingers! The lower strike was 2280.
    - Jeff 7:45 am on Tuesday, January 10, 2017
      
      Then I assume you mean “bear call spread”? BeCS?
      - rck89 7:50 am on Tuesday, January 10, 2017
        
        yes…I think this was your trade. Sorry about the sloppy typing!
        
        rck89 7:53 am on Tuesday, January 10, 2017
        
        It looks like the trade is coming back, but I guess the short time left, makes the risk too great. Your thoughts?
- Jeff 7:54 am on Tuesday, January 10, 2017
  
  Okay. You were not dumb. That spread is basically ATM, and I tend to close those at least a week before expiration if the SPX is anywhere near the short strike. Since the spread was basically ATM last Friday, I would have closed it, because a strong gap up this week will start losing you money very quickly. Closing a week before expiration gives you flexibility to roll, even if the spread is fully ITM. With less than a week, it becomes much more difficult.
  
  I am preparing webinars On my way! this strategy and I will also be explaining how to handle ATM and ITM spreads.
  - Jeff 7:55 am on Tuesday, January 10, 2017
    
    You can now look to sell a roll as the SPX pushes higher, giving you good premium on calls.
    - rck89 8:01 am on Tuesday, January 10, 2017
      
      At the moment, I’m looking at the STX 2285/2305 BeCS for next week, though a bunch of good earnings reports beginning this week and next would probably sink this trade. Where do you have SPX short term resistance?
      - Jeff 8:06 am on Tuesday, January 10, 2017
        
        2280 area has been resistance, but I am expecting a run to 2300 this week, based on VIX action. If today’s rally fizzles out, I may have to re-speculate that hypothesis.
        
        A spread for Jan 19th expiry is okay if you wish to deal with ATM/ITM rolling as a possibility. Unless we drop significantly this week, you would need to roll that spread before the close this Friday.
        
        rck89 8:19 am on Tuesday, January 10, 2017
        
        Mmm? That’s really bullish! And I defer to you on all things SPX! If you really think that 2300 is in the cards this week, then the smart thing to do would be to wait a bit. Or trade some kind of a SPX BuPS. Any suggestions for a SPX BuPS? Thanks.
        
        Jeff 8:23 am on Tuesday, January 10, 2017
        
        It is only what I am girding for, based on recent action of SPX and VIX (see Dec 7th). I am not betting the farm; I don’t ever do that with SPXcampaign… but I have cleared near-the-money call spreads and have one small LONG call spread for the possibility.
        
        I have been waiting to roll some stopped call spreads for the possibility of a very bullish run into monthly expiration/Inauguration Day.
        
        rck89 8:28 am on Tuesday, January 10, 2017
        
        Ok got it, thanks. I just STO Jan 13 2265/2250 BuPS @2.00 cr…small position, just to see what happens!
    - rck 8:02 am on Tuesday, January 10, 2017
      
      And boy do I need you SPX webinars!

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