#Earnings #Rolling #ITMroll #ContangoETFs #VXXGame
Bought to close $PANW Apr 21st 135 put for 25.50, to avoid early assignment.
Sold to Open PANW May 17th 135 put for 25.90
Sold to Open $DUST May 21st 35 calls for 1.40
Sold to Open $SVXY May 21st 90 puts for 1.95
$SVXY $UVXY – Prior pivot points to watch for a potential breakout (prices are approximate)
$UVXY Late Feb High 23.85/ Late Mar High 20.18 (followed by new low of 15.16)/Mid Apr High 21.75
$SVXY Late Feb Low 118.40/ Late Mar Low 127(followed by new high of 146)//Mid Apr Low 120.19
So a move in UVXY above 22 would signal caution and open the door for a bigger move.
The expectation is that SVXY breaks below the 118/120 band.
For UVXY, except for 2-3 day scalping trades like I did today, I’d keep selling weeklys in the $40-42 strike area, and for longer trades I’d stay at the 60 strike.
The sweet spot for Weekly Put sales in SVXY continues to be in the 75 to 85 strike price area. Selling too close in the 90-105 area could leave you exposed to a sudden downdraft in SVXY. It has moved 10 points lower in two days 2 or 3 times since late March.
Strike prices beyond the weeklys should be in the 60’s, although they are illiquid and not very high priced. Maybe it’s better to keep the powder dry and concentrate on the weeklys 5 and 6 weeks out.
Just my humble opinion.
Now watch volatility collapse. Just what I don’t want 😉
So I usually don’t sign up for advisory services. The only ones I have ever made money with were Don Fishback and in the good old days when the VIX stayed around 18-20 was Dr. Terry Allen’s recommendations (he taught some of my friends at UVA and is how I was introduced to options) and the trading book was helpful for directional trades. I have also spent plenty of money on tools that don’t work (John Carter and others). I have found a few tools from alphashark that are useful and have paid for themselves but only if you get them on sale.
The most useful resource I have seen and is free is tastytrade. There are now education experts packaging their research and selling it when you can get it for free from them. Selling options 30-45 days out, managing winners, and rolling/adjusting losers works. Can we all have results as good as Karen the Supertrader, probably not but by staying in the game and compounding we can probably make a decent amount of money and many of us had (my new GTI was paid for with cash last year with option profits).
Anyway, my experiment was I had a special price on Options Income Blueprint, $80 for 2 months so I figured what the hell, worth a try. They do all of the above but focus on weekly options. Same benefits, quicker decay so quicker pay check hopefully. I am only 2 weeks in and have already found you get assigned a lot more because you are closer to the money or have to roll options a lot more because of the same reason. However, I am slightly profitable and as long as you roll for even or a credit do not add any additional risk to the trade. I will report back at the end of 2 months and post some of my trades. If it works may be able to get quicker time decay and is another tool for generating income.
Glad I was referred to options bistro, I have already had a lot of good ideas and like the way everyone trades!
Now maybe we get some more volatility!?
$UVXY #ShortCalls #Speculation – two more trades with the stock at 20
Sold UVXY Apr 21 2017 22.5 Calls @ 0.26
Sold UVXY Apr 21 2017 23.0 Calls @ 0.22
Very slight backwardation in the VIX futures
http://vixcentral.com/
#FallingKnife – 10 year low…anyone like hot chocolate?
$URI #ShortPuts #Earnings – Sold URI Apr 21 2017 104.0 Puts @ 0.30 with the stock at 119.26
$AXP #ShortPuts #Earnings – Sold AXP Apr 21 2017 72.0 Puts @ 0.29 with the stock at 75.69
$UVXY #CoveredCalls #Rollout – Rolled 1 UVXY Apr 21 2017 22.5 Call out one more week for 1.04 Credit.
Better than the 0.80 credit I got last week
#LongCallDiagonals – Earnings next week so rolling this thing up to at the money. Paying a small debit but that’s ok since this short call has accumulated 13.00 in premium so far.
Rolled Apr 21st 840.0 call to Apr 28th 855.0 @ .75 debit
This thing has to level off at some point where the rolls can catch up. In the meantime 2019 long call/Bups working nicely.
#spxcampaign
$SPX STO 5/12 2135/2195 BUPS @ 2.00
$QCOM #ShortPuts #Earnings Sold QCOM APR 21 2017 49.0 Puts @ 0.29 with the stock at 52.33
The 20day MA has crossed below the 50 day MA and the RSI does not look good either. Time to be careful.
$URI #ShortPuts #Earnings Sold URI APR 21 2017 105.0 Puts @ 0.35 with the stock at 119.59
$UVXY #ShortCalls #Speculation- Sold UVXY Apr 21 2017 22.0 Calls @ 0.26
The 2 week high on the stock is 21.75 and they can always be rolled.
$TSO #ShortPuts #FallingKnife – Thanks @hcgdavis for pointing this one out
Sold 1 TSO Jun 2 2017 68.5 Put @ 1.09
Sold 1 TSO Aug 18 2017 65.0 Put @ 65.0 Put @ 1.72
$NUGT #ShortPuts #OptionLadder – Selling more to force DUST up 🙂
Sold NUGT Jun 2 2017 7.5 Puts @ 0.49
Sold NUGT Jun 2 2017 7.0 Puts @ 0.36
In my IRA, STO June 16, 65 puts @.75
Sold $XOP May 19 34 puts @ .60
$T BTO 4/28 40.50 straddle @ .95
#LongCallDiagonals #IRA – Still selling weeklies while she rests…
Bought to Close JPM APR 21 2017 87.0 Calls @ .04 (sold for .47)
Sold JPM APR 28 2017 86.5 Calls @ .45
This question for anyone. How does one trade SVXY, UVXY if day trading?
#spxcampaign
$SPX STO 5/12 2200/2225 BUPS @ 1.45
Closed Early
$AMZN BTC 4/19 930/920 BECS @ 82% profit
Have several $AMZN BUPS and BECS expiring 4/19 and feel better closing some early.
#ShortStrangles – Looks like the short term run is over. Closing put side of strangle at even and re-selling in the same expiration where I rolled the calls earlier.
Bought to Close EWW APR 21 2017 52.5 Puts @ 1.73 (sold for 1.75)
Sold EWW MAY 12 2017 49.0 Puts @ .61
New position is now May 12th 49/50 Strangles @ 1.43
STO June 16, 70 puts @ .90 cents in my IRA.
$GWW $APA $IBM $CVX – #FallingKnife candidates today
$VFC #ShortPuts – Bought to close 1 VFC May 19 2017 45.0 Put @ 0.05.
It won’t trade any lower and I’m out a month early.
A former #FallingKnife trade. Originally Sold @ 1.55 on 2/7/17
This is how these trades are supposed to work 🙂
$FB STC 4/21 130 calls @11.32 Booking some profit
$FB BTO 5/19 135 calls # 8.32 Looking for earnings run. Run $FB Run
Closed Early
$USCR BTC 4/21 55/60 BUPS @ 80% profit
$TSLA #BuPS
STO May 12 TSLA 275/255 BuPS for $2.53
Earnings on May 24th AMC.
Support at 294, 286, 278 & 270.
$NUGT #ShortPuts – Gold miners are weak after a big run last week. Glad I sold some of my NUGT Friday.
Sold NUGT MAY 12 2017 8.0 Puts @ 0.32
Sold NUGT MAY 19 2017 8.0 Puts @ 0.41
Sold NUGT MAY 26 2017 8.0 Puts @ 0.52
Sold NUGT MAY 26 2017 7.5 Puts @ 0.39
#SPXcampaign Sold to Open $SPX May 12 2225/2200 put spreads for 1.45. This is my second put spread from last week that I delayed due to downside threat… that threat seems lower now.
#Earnings – Bought to Close ISRG APR 21 2017 720.0 Put @ .05
This leaves 5.04 of premium from the original strangle. Still sitting on the short 800 call.
Also:
Sold ISRG APR 21 2017 805.0 Put @ 6.40
Position is now 805/800 inverted @ 11.44 credit. That give plenty of maneuvering room for an end of week roll if needed. Not ideal but could still work out unless ISRG pulls a CMG and goes to 1000!
#Earnings Bought to close $BLK 370/380/390 #IronButterfly for 4.65. Sold yesterday for 6.50. That should cover losses in $ISRG if it fails to drop below 775.00 by Friday.
STO January 185 call @11.30 on one contract.
#ShortStrangles – Bought to Close CMG APR 21 2017 455.0 Put @ .10 (sold for 6.15 after a couple roll ups)
Still have the short 440 call from the other side of the strangle. With earnings next week I could roll it up a few strikes and sell another aggressive put or just split it up into a new strangle…
$ISRG #ShortPuts #Earning – covered two sets of puts sold yesterday. They won’t trade any lower.
Bought to close ISRG Apr 21 2017 680.0 and 685.0 Puts @ 0.05
American Express (AXP) – consensus EPS $1.28
Crown Holdings (CCK) – consensus EPS $0.69
Kinder Morgan (KMI) – consensus EPS $0.18
Qualcomm (QCOM) – consensus EPS $1.20
Select Comfort Corp (SCSS) – consensus EPS $0.44
Steel Dynamics (STLD) – consensus EPS $0.76
United Rentals (URI) – consensus EPS $1.51
eBay (EBAY) – consensus EPS $0.48
The math behind why 45 DTE is most efficient for selling options.
https://www.tastytrade.com/tt/shows/the-skinny-on-options-modeling/episodes/why-45-dte-is-the-magic-number-05-26-2016–2
Options Bistro 