$UVXY #ShortCalls – a second…

$UVXY #ShortCalls – a second spike today to 34 – Selling at the highest strikes
Sold UVXY Aug 18 2017 65.0 Calls @ 0.67
Sold UVXY Aug 25 2017 60.0 Calls @ 1.33
Sold UVXY Sep 1 2017 60.0 Calls @ 1.80
Sold UVXY Sep 8 2017 60.0 Calls @ 2.23
Sold UVXY Sep 15 2017 65.0 Calls @ 2.61

SVXY

STO December 50 puts @3.30

$SVXY #ShortPuts – Sold SVXY…

$SVXY #ShortPuts – Sold SVXY Sep 15 2017 55.0 Puts @ 1.25 with the stock at 86.10

$SVXY #ShortPuts – Sold SVXY…

$SVXY #ShortPuts – Sold SVXY AUG 18 2017 52.0 Puts @ 0.23 with the stock at 86.07

Recovery experiment

So WDC dropped 16-17 points after earnings. I had small positions on several accounts. Options Income Blueprint suggests that with a big drop like that quicker to break even by taking delivery of the stock and selling covered calls than to keep rolling the put.

So I have taken the stock on half the accounts and am rolling the puts on the other half. 3 weeks in looks like the covered calls are winning. Rolling the puts I am only able to get about 0.20 of time value each week but selling the covered calls a few strikes OTM can take in 0.50-0.70. So the cost basis is already lower on the CC than the rolled puts and with even a slight rebound can get out at even.

If you are willing to sell ATM and roll the calls can get $1-2 per week which would make break even quicker but would probably have more adjusting. Will take me about 3-6 more weeks to fix them all the way but both work.

I think the CC is quicker to recover, just ties up more capital. The bottom line is a long as you know your cost basis and eventually close out the trade above your cost basis you will come out ahead and much easier with names that have weekly options.

$TRIP #CoveredCalls – Sold TRIP…

$TRIP #CoveredCalls – Sold TRIP SEP 15 2017 40.0 Calls @ 1.25

Update on $BA Trade

This trade was based on previously posted article:
Intelligent Short Put Spread
Monthly Options
Back-test length: three-years
Open 2-days After Earnings
Close 29-days Later
Holding Period: 28-Days per Earnings
Results of Back Test
Winning Trades:
10
Losing Trades:
2
Post-Earnings Short Put Spread Return:
 103.8% 
Annualized Return:
 113% 

Closed Early
$BA BTC 8/18 255/245 BECS @ .30 STO 7/31 for 2.80

Held for 7 days rather than 29. But trade did work for me.

$AAOI rollout

I’m rolling this week’s in-the-money 75 puts out to the September monthly (9/15) expiration for 3.41 credit.
Bought to close $AAOI Aug 11 75 puts @ 6.89
Sold to open $AAOI Sep 15 75 puts @ 10.30
This further reduces my basis in the trade. With the 3.41 credit plus the 1.20 premium I took in for the Aug 11 75 puts my cost basis for the stock, if assigned, will be 70.39. It is currently trading at 68.33.

$IWM strangle

Taking advantage of the increase in volatility to sell premium. Leaning slightly bearish.
Sold $IWM Sep 15 134/142 strangles @ 2.30.

HSIC #FallingKnife Sold $HSIC Jan…

HSIC #FallingKnife
Sold $HSIC Jan 19 2018 145 puts @ 2.00