Other trades on Wednesday

#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…

$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 😉

Trade chart for Todays YM Trades

weds-YM

Experiment

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…

$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/

NIB

#FallingKnife – 10 year low…anyone like hot chocolate?

$URI #ShortPuts #Earnings – Sold…

$URI #ShortPuts #Earnings – Sold URI Apr 21 2017 104.0 Puts @ 0.30 with the stock at 119.26