#ShortStrangles – TT recommends rolling the un-threatened side for additional credit and even going inverted if needed. It works great but can sometimes catch you in a whipsaw. Been trying to come up with something that would defend these positions without the inversion. Whaddya think of this? Whipsaw still a concern but not as likely compared to TT strategy.
1. As one side begins getting threatened (maybe a strike or two before going itm) roll unthreatened side up to delta 30ish
2. If stock continues in same direction then roll to straddle.
3. Could even skip step two and go straight to step four
4. At or slightly prior to threatened side going itm:
a. Book big gains on non threatened rolls
b. Roll threatened side into a NEW strangle in same expiration for as close to a credit as you’re comfortable with.
5. New strangle wouldn’t be worth much since you’re splitting original premium in that position between two new positions or could just split all premium including rolls but not book it until position is closed.
6. Manage new strangle same way.
$SPX STO 3/31 2375/2350 BECS @ 4.50
$SPX STO 4/7 2280/2305 BUPS @ 5.70
$SPX BTC 4/7 2455/2430 BECS @ .15 Sold for 1.65 on 3/10
And for another inspired educational moment for me:
Held to expiration
$SPX 3/27 2320/2345 BUPS for a 200% loss. Obviously it was worse earlier in week and day, but if only I HAD PLACED MARKET ORDER INSTEAD OF LIMIT there would have been a small gain. Sorry for yelling. There, I feel better.
SVXY BTC Mar31 $120 puts for 0.50, sold for 2.24 last Thursday.
Bought to close $SVXY Apr 7 86.50 puts @ .15. Sold for 2.05 on 2/24.
CONN is a specialty retailer of appliances and such I have never heard of in NW Illinois. It’s an $8 stock. 4 of it’s last 10 earnings have resulted in -24, -26, -30, -40, the last 2 however have been +11 and +8. On Jan. 4 of this year it was almost to 14.
After all of that, I bought an April 21 (only monthlys available) 8 put for .65, strictly a roll of the dice, I had Kentucky going all the way.
Taking these off the table instead of waiting until April for the last .05 or .10. Bought to close:
$DUST Apr 21 53 calls @ .10. Sold for 1.20 on 2/27.
$DUST Apr 21 55 calls @ .05. Sold for 2.03 on 3/3.
$DUST Apr 28 60 calls @ .10. Sold for 1.00 on 3/14.
Delta adjustment rolling put up to the 50ma support…
Rolled Apr monthly 240 put up to 255 @ 2.95 credit.
Position is now 255/275 strangle @ 11.51
$NUGT @CoveredCalls – Sold NUGT Apr 7 2017 11.0 Calls @ 0.28 on the open this morning.
#SPXcampaign Bought to close $SPX April 3rd 2325/2300 put spreads for 5.05. Sold as part of a #CondorRoll last Tuesday for 7.80.
The call spread I sold this morning will act as a roll for this spread. I stopped it since it started the day ITM, so I’m not giving it another chance to explode.
#ShortStrangles – My only real problem child at this point. Had 105/100 inverted strangles and then rolled 105 puts up to 113 for this week. That’s gonna be a nice winner but calls not so much so rolling 100 calls out 2 weeks (avoiding earnings week for now) into new strangles. Will roll again once earnings week is announced. I like rolling into the high IV of earnings. Gives a great opportunity to adjust the strikes even more than usual.
Rolled this week’s 100 calls to Apr 13th 105/120 inverted strangles @ 1.10 credit
$SVXY #ShortPuts – not a lot of new positions this morning. I ran a spreadsheet over the weekend and was amazed to find that I am already short almost twice as many puts as calls on SVXY.
Of course my short calls are very far out (2018 and 2019) while the majority of my puts are weeklys and are all out of the money 30 to 50 points (or more).
Sold SVXY Apr 13 2017 80.0 Puts @ 0.50
Sold SVXY Apr 28 2017 80.0 Puts @ 0.96
Sold SVXY May 5 2017 70.0 Puts @ 0.80
Sold SVXY Jun 16 2017 52.0 Puts @ 0.92
#SPXcampaign 3.00 stop hit on one spread.
STOPPED: Bought to close $SPX April 20th 2265/2240 put spreads for 3.20. Sold last Tuesday for 1.35.
#CondorRoll Sold to Open SPX Apr 28th 2125/2150/2420/2445 iron condors for 2.15, 1.5x position size.
Also, closed SPX April 13th 2435/2460 call spreads for .20. This one was not closing as a spread, even with a bid of .25, so I closed the legs manually for .35 and .15.
$UVXY Jan 19 2018 60 call @ 4.70 (highest strike)
$UVXY Jan 18 2019 60 call @ 6.15 (highest strike)
$SVXY May 19 65 puts @ 1.10
#SPXcampaign Sold these call spreads this morning after the open…
Sold to open $SPX March 31st 2340/2365 call spreads for 6.00. Expire this Friday.
Sold to Open $SPX April 28th 2410/2435 call spreads for 1.75.
#CoveredCalls #VXXGame – Was holding stock at a 120.75 basis covered by 127 calls for this week. Sold stock in pre-market @ 128.30.
Rolled 127 calls to Jan 2018 225, 230, and 235 strikes for a total credit of .95
Be sure to click “HOME/Refresh” (upper left) when you start your day and periodically when using Bistro so features in the upper menu and right-hand column remain updated.
#SPXcampaign At the pre-market open, just after midnight ET…
Bought to close $SPX Apr 7th 2430/2455 call spreads for .20. Sold for 1.55 on March 10th.
Bought to close $SPX March 31st 2400/2425 call spreads for .20. Sold for 4.40 on March 10th.
#VIXIndicator #Markets #spxcampaign
In the pre-market, the VIX peaked at 15.11 (so far) this morning and has fired a downside signal. This cancels the Upside Warning that’s been in effect since November. If we reach 16.20 today, that will fire a Downside Warning.
I will be rolling some put spreads today, selling some call spreads, and being cautious on placement of any new put spreads.
Jeff, Not sure how you come up with 14.96 (50% above 2/1 low). Appreciate if you can post the start and finish points on the fibonacci retaracement.