$AKAM $APC $DO $NBL $OXY #FallingKnife candidates
Monthly Archives: May 2017
Selling puts on TWLO
Sold $TWLO Jun 16 23 puts @ 1.00
$AAPL – one of the…
$AAPL – one of the few stocks in the DOW, the SP500 and the NASDAQ100.
A lower market open tomorrow?
$SVXY #ShortPuts #AfterHours – Bought…
$SVXY #ShortPuts #AfterHours – Bought to close 1 SVXY May 05 2017 80.0 Put @ 0.01.
Sold on 03/24/17 @ 1.25
$SVXY #ShortPuts – Bought to…
$SVXY #ShortPuts – Bought to close 2 SVXY May 05 2017 81.0 Puts @ 0.01.
Sold in late March and early April at an average of 1.14
$NUGT
I bought a couple May 12 6 puts at .04 for margin relief on some higher puts. After the the reverse split, TDA has me with a 23,650% gain on them.
$RIG $NOV #FallingKnife candidates
$RIG $NOV $OXY #FallingKnife candidates
$UVXY #ShortCalls – Bought to…
$UVXY #ShortCalls – Bought to close 2 UVXY May 12 2017 27.5 Calls @ 0.01. They won’t trade any lower.
Sold at 1.33 and 1.57 on 4/3/17
GRPN earnings
#Earnings Trying the rare #LongStraddle trade for a stock that tends to move big on earnings:
Bought $GRPN March 5th 4.00 straddles for .60. Biggest UP move: 29.0%, Biggest DOWN move: -26.3%, Average move: 16.7%. Breakevens are +/-15% OTM.
Anyone playing $AAPL?
Tempted to sell a strangle but always careful that any earnings announcement could have some news that would blast the thing off. Valuation isn’t as good as it was a year ago, but still a reasonable PE (17) for a company projected to grow by 16% over the next 5 years. Sitting on my hands for now.
#Earnings
$SVXY #ShortPuts – Bought to…
$SVXY #ShortPuts – Bought to close 10 SVXY Jun 16 2017 39.0 Puts @ 0.05 (no commission).
Sold in late December for an average of 1.27.
#shortcallspreads CMG From TradeWise May…
#shortcallspreads CMG
From TradeWise May 19 500.502.5 for .70
earnings on TAP
#Earnings Sold to Open $TAP May 5th 92/95/98 #IronButterfly for 2.00. Max loss 1.00. Biggest UP move: 5.8%, Biggest DOWN move: -4.1%, Average move: 2.5%. Breakevens are +/-2.1% OTM at Friday expiration..
#SVXY #ShortPuts #ShortCalls – Margin…
#SVXY #ShortPuts #ShortCalls – Margin issues are still pressuring me.
Bought to close 2 SVXY Jan 19 2018 130.0 Calls @ 38.80 – Originally sold at 7.90
Bought to close 2 SVXY Jan 19 2018 135.0 Calls @ 35.70 – Originally sold at 7.10
Bought to close 6 SVXY Sep 15 2017 165.0 Calls @ 13.40 – Originally sold at 13.43 (breakeven)
Bought to close 22 SVXY Jun 16 2017 55.0 Puts @ 0.11 – Originally sold at 3.55
A net overall loss but not as bad as yesterday.
If the stock keeps hanging around 150 I’ll be forced out of more positions in the next day or two.
NUGT DUST combo platter
#ShortCalls – New NUGT options available today. Selling a combo since they both can’t lose…highest NUGT strike so far paired with whatever DUST strike brings equal premium.
Sold NUGT JUL 21 2017 45.0 Call @ 2.10
Sold DUST JUL 21 2017 50.0 Call @ 2.20
$DUST ShortPuts – Bought to…
$DUST ShortPuts – Bought to close DUST MAY 5 2017 27.0 Puts @ 0.05. They won’t trade any lower.
Sold on 4/12 at 3.70 as a #Rolldown trade. After a number of rolls, made a decent return overall.
Closing GILD
$GILD #ShortPuts With earnings tonight the strike very possibly could be safe (55 with the stock at 68.79), but this is a biotech and anything can happen so I’m taking this off for about 75% of the premium received.
Bought to close $GILD Aug 18 55 puts @ .34. Sold for 1.32-1.45 on Feb 8-9.
# experiment and more thoughts…
- experiment and more thoughts on efficiency of capital.
So a few weeks into the options income blueprint. One of the things they recommend is higher $ return on covered calls vs. selling puts. In looking at the numbers may be right in terms of absolute dollars. However on a percentage basis selling puts is higher.
Example, buy write on TSO right now with stock at 79.3, you could do 10 lot on next weeks 77 strike and the call you would make $980 and on the put only $810. So in absolute terms make $170 more on the buy write than the put write. Looking at most stockso this seems to be true, even more with names that are skewing to the upside and the calls are more expensive than the equal distant puts.
Now on a percentage basis, the put writing is better but on an absolute basis make more with the buy writes. Maybe better to write puts on margin and buy writes in retirement accounts.
I used to trade deep ITM covered calls 3 months out. Gave good protection 10-20% but found theta decay to be slower than paint drying. However, was successful.
Thoughts? Any of you doing ITM covered call on a weekly basis?
TLT adjustment
Possibly my favorite #PerpetualRollingStrangles …
Rolled this week’s 123.5 puts out to May monthly 123.5 @ .38 credit.
Paired with many calls near the same strike out over the next few weeks.
GLD rolled
#PerpetualRollingStrangles – Another roll. They add up over time…
Rolled this week’s 120.5/113.0 inverted strangles to May monthly same strikes @ .55 credit.
Came close to getting out of the 120.5 puts but she reversed too soon…
CMG
#ShortStrangles – My only problem child…time for more aggressive punishment to force some cooperation.
Short a Jun 450 call and a May 470 put so:
Rolled May 470 put in and up to this week’s 490 @ 2.55 credit.
Total premium received on the 490 put is now up to 9.56. Plan is to keep selling at or slightly in the money puts every week until a reversal. Otherwise will have plenty of credit in the position for a debit roll of the call.
EWW
#PerpetualRollingStrangles – Replacing this week’s…
Sold EWW MAY 26 2017 51.5 Puts @ .75
IBB
BTC June 225 puts @.05, Sold @ 3.95 and I think I owe Fuzzball a hat tip for this one.
$VIX – What does a…
$VIX – What does a single digit VIX mean?
http://tinyurl.com/lw7mya2
$CVS #ShortPuts – Bought to…
$CVS #ShortPuts – Bought to close CVS May 19 2017 70.0 Puts @ 0.01. They won’t trade any lower.
A former #FallingKnife trade. Sold in late January at an average of 1.23
People are panicking, the vix…
People are panicking, the vix is up .12 today!!!
SPX puts sold
#SPXcampaign Sold to Open $SPX June 2nd 2290/2265 put spreads for 1.40, with SPX at 2386.
SPX and SVXY trades yesterday
#SPXcampaign
Bought to close $SPX May 18th 2210/2185 put spreads for .20. Sold for 1.35 on Apr 21st.
Expired: SPX May 1st 2380/2355 put spreads. Sold for 4.65 last Tuesday.
#VXXGame
BTC SVXY May 19th 85 put for .15. Sold for 1.28 on Apr 21st.
BTC SVXY June 16th 75 put for .30. Sold for 3.40 on Feb 23rd.
$SVXY #ShortPuts – Bought to…
$SVXY #ShortPuts – Bought to close 1 SVXY May 19 2017 71.0 Put @ 0.01- Originally sold at 1.17 on 4/13.
The funny thing is, until I closed the position it had not traded at all since I sold it. It had an open interest of 1 contract.
A Little of This, A Little of That
Expiration
#spxcampaign
$SPX 2415/2390 BECS Thank you Jeff
Closed Early
#shortputs
$GOOGL 5/19 825/635 BUPS @ .05 97% profit
#earnings
$CMI STO 5/5 140/160 strangle Thank you Jeff
#spxcampaign
$SPX 5/12 2440/2415 BECS @ 2.20
X puts missed this trade…
X puts missed this trade last week while away, STO Oct 17 18 puts @ 1.47, I think thanks go to @optioniceman.
Bucket List: last week I said that I was out of pocket to tick-off a long awaited Bucket List event at Las Vegas Motor Speedway/Drive Petty, to drive a NASCAR at 160 mph…yup, that was the plan! You know what they say about Vegas..? Arrived at the track at closing bell, put on the fire suit, completed driver’s meeting and walked to the pit area for more safety instructions, issued a helmet with built in mic, stood around for the next race car w/instructor to pull up. Name called, now it’s time to fold my early mid-century body through the driver’s side window, no doors in this puppy, it’s filled with high impact metal tubing, in case of a-you-know-what…ok, right leg up and through, left leg up and through, then butt, stomach, chest and helmet bouncing off the roof…plopped, that happened real fast, into a plastic seat shaped like a toddler’s potty chair, hmm, did I go already, hands came out of nowhere “slap-click, slap-click, slap-click,” the hands disappeared only to return with a horses collar for my neck, now I really can’t, literally, can’t move any part of my body that includes breathing…I could have been in the Mercury space capsule for all I knew. Instructor introduces himself shakes my hand, oh I have something that moves thought I lost it on entry, asks if I’d done this before, I said yes, small time SCCA, that took all my breath the seat belts are to tight, I gasped, oh one more accessory, the steering wheel, Saturn just arrived 6 inches from my nose, he loosened the belts a little then started to explain dials, switches and hand signals, I sense hands again, raising the black webbing locking it into place with a huge piece of rebar. Mind you, there is no way to get comfortable unless you’re smoking weed, forward vision is restricted to about the size of a legal pad, no lateral vision I guess if you are racing you just listen for the sound of crunching metal. Backing up a little, some 15 years ago I almost drowned off of Cabo, caught in a rip, went down twice, my screaming summoned a surfer who hoisted me on her board by my shorts, another surfer took me to shore. The surfer lady that rescued my butt, just happened to be the mother of the champion girl surfer who’s left arm was bitten off by a shark. Ok, well the fear/panic I experienced of almost drowning, arose when I was seated in the confining race car. I got out, cancelled the drive. The Drive Petty folks said that it happens, sometimes…
SVXY
After the close, STO May 19, 110 put @.67
Closing some UVXY
Reducing short vol exposure.
Bought to close the following:
$UVXY May 12 27.50 calls @ .03. Sold for 1.13 on 3/31.
$UVXY May 12 30 calls @ .03. Sold for 2.10 on 4/11.
$UVXY May 12 40 calls @ .03. Sold for 1.35 on 4/12.
$UVXY May 19 39 calls @ .03. Sold for 1.70 on 3/21.
$UVXY May 19 40 calls @ .04. Sold for 1.00-1.50 on 4/3-4/11.
Have a lot more to go. With the market at these levels I have a quick hook on positions that are getting under .05 to cover.
#VXXGame
$SVXY #ShortPuts – Bought to…
$SVXY #ShortPuts – Bought to close 1 SVXY May 5 2017 75.0 Put @ 0.01- Originally sold at 1.15
SVXY
At the close, STO May 19, 120 put @1.12 and 130 put @1.95
GOOGL adjustment
#LongCallDiagonals – Paying a small debit but that’s ok since this short call has accumulated 10.15 in premium so far.
Rolled May 12th 857.5 call to Sep 15th 880.0 call @ .90 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.
Looking at rolling the 2019 long call up (again) which would take nearly all the risk out of the trade…
$SVXY #ShortPuts – Bought to…
$SVXY #ShortPuts – Bought to close 4 SVXY MAY 12 2017 65.0 Puts @ 0.02. Originally sold at 0.56
$DUST
sold partial position at $34.78, bought 4/26 for $32.88. I expect a pullback after nearly 8% jump today. Gold is near 50 day MA, so I think a bounce is in order which will drive DUST lower. Keep tuned.
SVXY
STO May 19, 130 put @1.95, joining the crowd and taking the hit for the team. I sure hope this works.
$VXX #ShortCalls – Bought to…
$VXX #ShortCalls – Bought to close 3 VXX May 26 2017 30.0 Calls @ 0.02. Originally sold @ 0.38
$SVXY #ShortPuts – Bought to…
$SVXY #ShortPuts – Bought to close 5 SVXY JUN 16 2017 30.0 Puts @ 0.04. Originally sold at 2.30
#SVXY #ShortPuts #ShortCalls – Margin…
#SVXY #ShortPuts #ShortCalls – Margin issues raising their ugly head again.
Bought to close 2 SVXY Jan 19 2018 125 Calls @ 41.90 – Originally sold at 9.00
Bought to close 10 SVXY Jan 18 2019 20.0 Puts @ 0.36 – Originally sold at 2.00
A net overall loss.
If the stock stays at 150 I’ll be forced out of more positions in the next day or two.
SVXY for the team
#TakeOneForTheTeam #ShortStrangles – Looks like we need another one of these so here goes….
Sold SVXY MAY 19 2017 160.0/155.0 Bull put spreads @ 3.07
Even with an implosion I’ll get the stock just a measly 1.93 below where it’s trading then…
# short puts
Closing WDC May 26 77.5 puts early. They are down to 0.19 and originally sold for 1.15. They would probably go out worthless in 25 days but I can use the margin to open new positions.
CMI earnings
#Earnings Sold $CMI May 5th 140/160 strangles for 1.00. Biggest UP move: 7.6%, Biggest DOWN move: -8.7%, Average move: 4.1%. These strikes are +5.3% and -7.9% OTM.
$VIX – Back down to…
$VIX – Down to 9.90 at the low …. so far. Bounce territory for sure.
VIX Crashes To 9-Handle For First Time In Over 10 Years
As Nasdaq melts up faster than Bitcoin, perceived equity market risk has utterly collapsed. VIX just traded with a 9-handle for the first time since Feb 2007…
DUST Dec calls
Starting small in December, and will wait for higher strikes for further sales.
Sold $DUST Dec 15 50 call @ 6.50
$UVXY
BTC May 12 $30 calls @ $0.02 (sold for $1.75)
BTC May 12 $40 calls @ $0.02 (sold for $1.24)
SVXY
STO one contract of January 2018
205 call @10.30
210 call@9.55
215 call @8.60
$AMZN
Looks like it is headed higher now. BTC May 5 $960/$965 BeCS’s @ $0.65 (sold for $0.79). Should have closed on friday. I did expect it to firm up, but wasn’t expecting this big of a jump, just getting out of the way. All of the high volume bars are green so this thing could just keep going for a while.
STO $AMZN May 5 $910/$900 BuPS’s @ $0.48
SPX calls sold
#SPXcampaign Sold to Open $SPX June 2nd 2450/2475 call spreads for 1.40. Going for higher now (or you can go for the 2455 short).
CHTR earnings
#Earnings Sold $CHTR May 5th 325/370 strangles for 2.30 (each side sold separately for 1.15). Biggest UP move: 9.2%, Biggest DOWN move: -7.9%, Average move: 3.6%. My strikes are +7.2% and -5.8% OTM.
Econ calendar for week of 5/1/17
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JOBS report is this Friday, 5/5.
Options Bistro 