Hello everyone! I have been…

Hello everyone! I have been following for a month or so now. Good to find others that trade the same way I do (tasytrade, don fishback style). Anyway, I have been trading options seriously since 2004. I have almost exclusively graduated to selling options as over the years most of my trades that worked out involved selling an option first and not picking a direction. However, I have found taking a slight directional bias can increase returns.

Lately I have traded mostly individual names (better premiums with the low vol.). I tend to start by selling a put 1-4 weeks out. Delta 30 or lower and try to collect at least 1.00 or very close. If I get assigned convert to covered calls. I will also roll options until I can close it, make some money on it, or scratch it and start over. I have found about 16 names that trade well like this with good premiums that cycle with a range. I am currently in a TSO position that was assigned at 87.5 but because of rolling have my cost basis down to 82. 1 more point I am back to profit, today helped! Or 1 more week of rolling and will be break even.

I will also sell /es or /cl or /gc futures strangles but will always keep enough of a cash reserve to cover those positions if there is an extended move. Burned big time Aug. 2015 when I was short 50 /es contracts but only had enough cash to cover half of them. A painful lesson but a rule I will never break again. With those I will usually start 30-45 days out with a delta of 4-16 depending on directional bias. They decay to delta 4-8 in about 2-4 weeks and can take 50% off the table as tastytrade recommends. In case of an extended move will go long or short some contracts as a hedge and to get some hard deltas. Once the move is over close at a profit and keep the options decaying or let the options assign and close the future. Those are the trades that supercharge the equity curve but they don’t happen that often.

Thanks for the ideas. Look forward to working with everyone and hope I can add some ideas to the pile. I will usually not be long winded, this will be my longest post. As I see how you post trades I will start adding some. Usually trade on Thurs. (day off) and Fri. with rare mid week adjustment if needed.

Cheers, Chris Davis

A rather Nice day in YM

#futures

A good trade day today in the intraday….

ym-monday

A Trade and Tid Bits

Trade: BTC $XOP May 19 34 puts @ .31, managed at 50%.

Tid Bits: #education #longterm #IRA
For sometime I’ve been receiving a free newsletter “My Traders’s Journal” authored by Alex Fotopoulos, who writes with an easy-to-read conversational style, explaining the what, why and how he set up his trades, much like our Options Bistro members…no hype, no sales pitches. I’ve posted last Friday’s release below for a couple of reasons: the analysis of April 7 SPY chart and the book of trades he made for the year of 2012, which might help others learning options, I think I remember @optionshane enquiry. So check out the email, blog and book…
SPY Chart – April 7, 2017
http://feedproxy.google.com/~r/MyTradersJournal/stks/~3/LVoammModtw/?utm_source=feedburner&utm_medium=email

Last bit:
Last month @fuzzballl posted a “quick-read” called “The 3% Signal: The Investing Technique That Will Change Your Life” by Jason Kelly. Well, how could I pass up the chance to read an investment book while sunning in PSP for a couple of weeks? Uh, after four weeks, I still haven’t finished the book, largely due to extended pool and happy hour time. So if you are thinking of a method for your long term/IRA accounts take a look at jasonkelly.com. And also checkout some of the analyses of the set up at the url below.
http://www.mymoneydesign.com/personal-finance-2/stocks/does-the-3-signal-investment-strategy-really-work
Thanks @fuzzballl!

$UVXY #ShortCalls – new weeklys,…

$UVXY #ShortCalls – new weeklys, new strikes – with the stock at 18.50.
Sold UVXY May 12 2017 30.0 Calls @ 1.37
Sold UVXY May 26 2017 30.0 Calls @ 1.76

$SVXY #ShortPuts – new weeklys,…

$SVXY #ShortPuts – new weeklys, new strikes – with the stock at 131.
Sold SVXY May 26 2017 70.0 Puts @ 0.80

SVXY

Just after the close
STO May 26 $80 put @ $1.25
STO May 26 $85 put @ $1.70
Followed @optioniceman trade this morning

Why UVXY is going up?

Why UVXY is going up?