#ContangoETFs Sold $NUGT Dec 51 call for 2.20.
Daily Archives: Wednesday, August 16, 2017
Recent discovery and follow-up to…
Recent discovery and follow-up to cover calls versus rolling puts.
With the rebound WDC I am back to break even after 3 weeks after a 17 point drop. However the covered calls have recovered quicker than the put rolls. Bottom line is that is probably more efficient to accept shares and convert to covered calls instead of continuing to roll the puts. It will still take me another 3-4 weeks to break even on the put rolls which is money that remains tied up. The CC will close next week giving me money to trade with again.
Sometimes better to sell an ITM covered call instead of a put on the weeklys especially on stocks that have an upside bias. Looking at a trade on SVXY the other day at the 76 strike, the covered call would have made $1290 on 10 contracts and the put only $1100 on the same number of contacts. The extra money would more than offset the exercise and assignments fees and just as easy to roll the calls. Plus rolling the calls usually gives you more capital gains as well.
$UVXY #Strangle – I HAVE…
$UVXY #Strangle – I HAVE NOT put this on yet but it’s a decent trade.
Short the Sep 8 2017 25/55 Strangle for more than 2.00 with the stock at about 30.50.
Only 3 more weeks to expiration with the Labor Day holiday thrown in to accelerate decay.
$DUST #ShortPuts Sold DUST (Weekly)…
$DUST #ShortPuts Sold DUST (Weekly) Aug 25 2017 25 Puts @ 0.60 in an account with long NUGT stock. Hoping to force NUGT up or collect more premium dollars while I wait for that to happen.
WMT earnings
#Earnings #BrokenWingButterfly
Slightly different… Sold $WMT Aug 18th 78.5/81.5/84 broken-wing butterfly for 2.00. Max loss downside is 1.00, max loss upside is .50. With stock at 81.00, can sustain a -1.9% move down and a +3.5% move up and remain profitable. Leans bullish with decent retail reports today from TGT and URBN.
Biggest UP move: 9.6%, Biggest DOWN move: -4.4%, Average move: 3.6%.
$NUGT #CoveredCalls – Sold NUGT…
$NUGT #CoveredCalls – Sold NUGT Aug 25 2017 36.0 Calls @ 0.37 with the stock at 32.50
$XOM #ShortPuts #FallingKnife – Sold…
$XOM #ShortPuts #FallingKnife – Sold XOM Jan 19 2018 70.0 Puts @ 1.11 with the stock at 77.39
$UVXY #ShortPut – Sold UVXY…
$UVXY #ShortPuts – Sold UVXY Sep 8 2017 25.0 Puts @ 0.93 with the stock at 30.65
I know, I know …Not my usual trade but I’m short a sh*t load of UVXY Calls
edit: added the strike price
$LB #CoveredCalls #OptionLadder – with…
$LB #CoveredCalls #OptionLadder – with the stock at 39.87
Sold LB Nov 17 2017 47.5 Calls @ 0.85
Sold LB Jan 19 2018 50.0 Calls @ 0.90
UVXY
Busy week away from the market again but still adding an experimental position on UVXY. Low risk high reward playing it’s long term downtrend. Reverse Whiz style.
#LongPutDiagonals #SyntheticShortStock – I’ll be adding a similar position on VXX after the split next week. I’ll let ’em race each other down and see what works the best.
BTW…TDA portfolio margin for this trade is only 2600 increasing to 4000 if UVXY doubles overnight…
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Synthetic short stock with disaster long calls (17.75 debit)
Sold UVXY JAN 18 2019 30.0 Calls
Bought UVXY JAN 18 2019 30.0 Puts
Long call for possible disasters capping potential losses:
Bought UVXY JAN 18 2019 40.0 Calls
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Weekly put sale against synthetic short stock to really boost the profits on this trade:
Sold UVXY AUG 25 2017 29.0 Puts @ 1.25
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The plan:
Sell weekly for the next 74 weeks and let the thing decay. Hopefully capture 10 dollars of the move from 30 to 10.
Once I get a little profit under it I’ll reduce the size or possibly eliminate the disaster calls so I’m only treating those as a temporary expense. Once I remove the disaster calls and get some of that debit back I don’t see how this thing can’t make any less than 100 points per spread with very little stress and risk.
Gold, NUGT soaring
Gold, NUGT soaring
tt Research
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VIX
I notice VIX-X moved 5% today while UVXY and SVXY have moved less than 1%. Are we likely to see a stronger move when these ETFs do move? Or are they signaling a likely reversal of VIX-X? Anyone else analyzing these securities?
TRTN
#Rolling
Aug18//Sep15 $TRTN 35 puts @ 1.30 credit in TOS IRA acct. Share at 34.54
#ShortPuts
STO $TRTN Sep 15 35 puts @ 2.12 to replace same expiring Friday, or assigned in IRA Dividend account, 5.25% yield, .45 qtr div. Shares at 34.57
NVDA put sold
#Earnings Sold to Open $NVDA Sept 15th 160 put for 4.00. This will put me back into profit after trading this one since busted earnings in April.
AAOI rolling for time and credit
#Rolling #ShortPuts
$AAOI Rolling Aug 18/Aug 25 70 put for 1.00 credit. Opened on Aug 15 for 1.90 credit, less 1.00 today CB 67.10 plus commissions. Planning on weekly rolls…
UNIT Short put
#shortputs
$UNIT STO 9/15 20 put for 1.55
SPX calls sold
#SPXcampaign Sold to Open $SPX Sep 14th 2515/2540 call spreads for 2.40. A little higher delta than I usually sell for my standard campaign, but I already sold the 2520 short, and the 2525 short was not lucrative enough.
Also, closed on GTC order in pre-market: SPX Aug 17th 2395/2370 put spreads for .20. Sold for 1.35 on July 20th.
Options Bistro 