These 2 are probably the bible on strangle/straddle selling. Occasionally watch tasytrade re-runs, wife and daughter at dance so catching a few of the more important re-runs.
https://www.youtube.com/watch?v=UBBjR3NcyUM managing straddles and strangles
https://www.youtube.com/watch?v=pDz10RKJdp0 how big account for 1 lot trades
I made no new SPX trades today, but have finally caught up and the position chart is now up to date.
We hit a 10 year low on the VIX today, lowest since December 2006.
Taking some #VXXGame trades off into the strength
Lightening the load in expirations that I had a heavier presence–bought to close:
$UVXY May 26 40 calls @ .04. Sold for 1.80 on 4/13
$UVXY May 26 42 calls @ .04. Sold for .80 on 4/21
$SVXY Jun 16 60 puts @ .20 Sold for 1.41 on 2/15.
$SVXY Jun 16 64 puts @ .12. Sold for 1.33 on 3/24.
$CELG #ShortPuts #FallingKnife – Sold a some more Puts in this name
Sold 1 CELG Oct 20 2017 95.0 Put @ 1.39
Sold 1 CELG Jan 19 2018 85.0 Put @ 1.39
$SVXY #ShortPuts – SVXY is too high and I’m going to have to cover more calls. I will also need to cover some worthless puts to get a full margin release.
Bought to close 6 May 12 2017 70.0 Puts @ 0.01. Sold on the last VIX spike at 0.64, 0.75 and 0.90
No earning trading today.
It is heading lower into the finish.
STO January 47 puts @1.05
STO January 200 puts @4.00
BTC May 19, 26 puts. Sold @ .65
STO Sept 15 33 puts @ 1.35 IRA account
STO October 95 puts @1.21
STO January 85 puts @1.25
So i have been watching how you guys trade the volatility products. What happens in an Aug 24, 2015 type event where VIX quickly spikes to 100? Can you hedge those products? Say go long or short stock or can you only cover with other options?
I lost more money that day than ever trading but was largely a function of size. My accounts I was able to hedge actually did ok but one very large account was wiped out because options xpress would not let me hedge, said there was “too much risk” to hedge and locked my account so I could not trade. Needless to say we do not have any money with them any more and I do not recommend them, their risk dept. did not seem to understand that by hedging the risk was controlled.
But seriously, how easy is it to hedge those products? Most of the move 8/24/15 occurred Sunday night into Monday morning so you could hedge with futures over night but by the time the market opened Monday morning it was already limit down and I know a lot of people could not place trades.
Just curious, I think a military conflict with N.Korea could obviously cause a spike like that.
It is below 10 again. This is a boring day.
$TRIP #Earnings – Sold $TRIP May 19 2017 52.5 Calls @ 0.60 with the stock at 47.09.
Earnings after the bell on Tuesday.
Already short long term Puts from the drop after the last earnings report.
$SLV #ShortPuts #IRA – Sold SLV Dec 29 2017 13.0 Puts @ 0.24 with the stock at 15.40.
$SLV just posted its longest losing streak ever. #FallingKnife
Carter Worth is looking for a bounce in this volatile commodity
#FallingKnife candidates – $CELG $BIIB $AKAM
STO May 19, 150 put @3.70 taking one for the team again.
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AES CORP (AES) – consensus EPS $0.20
CIMAREX ENERGY (XEC) – consensus EPS $0.85
HORIZON PHARMA (HZNP) – consensus EPS $0.25
JD.COM INC-ADR (JD) – consensus EPS $-0.05
KITE PHARMA INC (KITE) – consensus EPS $-1.68
NEWELL BRANDS (NWL) – consensus EPS $0.29
ON DECK CAPITAL (ONDK) – consensus EPS $-0.16
SYSCO CORP (SYY) – consensus EPS $0.51
TYSON FOODS A (TSN) – consensus EPS $1.06
Earnings After Markets Close
AMBER ROAD INC (AMBR) – consensus EPS $-0.18
AMC ENTERTAINMT (AMC) – consensus EPS $-0.08
DIPLOMAT PHARMA (DPLO) – consensus EPS $0.15
EOG RES INC (EOG) – consensus EPS $0.15
HERTZ GLBL HLDG (HTZ) – consensus EPS $-0.94
MARRIOTT INTL-A (MAR) – consensus EPS $0.90
OASIS PETROLEUM (OAS) – consensus EPS $-0.07
PANDORA MEDIA (P) – consensus EPS $-0.50
TESORO CORP (TSO) – consensus EPS $0.36