fuzzballl 9:07 am on Wednesday, November 22, 2017
Tags: IRA ( 431 ), SyntheticStock ( 356 )

EWZ

#SyntheticStock #IRA – Rolling front month up and out a little…picking up another 1.10 of upside.

Rolled EWZ NOV 24 2017 40.0 Calls to DEC 8 2017 41.0 Calls @ .10 credit.

1strangealien 9:52 am on Wednesday, November 22, 2017

I joined you on an $EWZ trade today… EWZ 2020 +41 calls -41 puts +36puts for 5.30 debit. Sold EWZ Dec01’17 41 calls for 0.58. Thanks and good luck!
- fuzzballl 10:01 am on Wednesday, November 22, 2017
  
  Good luck! These are slow movers and kinda boring but pretty darn safe. I keep most of mine in my long term non taxable accounts. The synthetic really gives nice safe leverage for the most part so minimal hit on buying power even in an #IRA .
hcgdavis 10:49 am on Wednesday, November 22, 2017

how long does it take to double on EWZ?
- fuzzballl 10:58 am on Wednesday, November 22, 2017
  
  Good question. Lots of different scenarios that can play out. I’m in at a 3 dollar debit so if it stays flat and I can sell 50 cents a week it would take 12 weeks. If it tanks then more selling would be needed to cover the max loss. If it launches to the moon then it’s just a matter of monthly roll ups to gradually lock in more and more gains.
  - hcgdavis 11:05 am on Wednesday, November 22, 2017
    
    but on average pretty quick? Like a double in 6-12 months?
    - fuzzballl 11:22 am on Wednesday, November 22, 2017
      
      I haven’t held any of them long enough to actually have some sort of an average but a year in worse case would seem reasonable. Any of these that are held to the end would disappoint me if they weren’t at least a triple.
  - hcgdavis 11:11 am on Wednesday, November 22, 2017
    
    I am doing a little experiment on what is the most effective use of capital and makes the largest gain (dollar wise) rather than percentage wise in the least amount of time and keeping risk controlled.
    
    In my own trading I find the biggest gains in order are:
    strangles
    naked put
    synthetics with disaster coverage, long or short and selling weekly/monthly premium
    covered calls that I am assigned on and convert to a straddle or strangle
    buy writes ATM or slightly ITM
    regular covered calls I am assigned on off a put sale
    Iron condors
    credit spreads
    
    The more complex the strategy the less I seem to ultimately make. Stupid simple seems to have better results.
    
    You finding similar since our trading styles are close?
    - jsd501 11:16 am on Wednesday, November 22, 2017
      
      I did some thinking about this as well. I wish I had just bought the SVXY and sat on the position for the last 5 years. The hard part is sitting through the down moves.
      - fuzzballl 11:20 am on Wednesday, November 22, 2017
        
        Got that right. Holding thru a (real) SVXY down move is almost impossible…especially in the back of my mind a little voice telling me, “yes Scott, it CAN go to zero!”
    - fuzzballl 11:18 am on Wednesday, November 22, 2017
      
      Yep, I would agree with that. I’ve got all of those (except iron condors…too hard to manage so always use strangles). I like having the variety. Using defined risk in IRA to maximize buying power. Sticking to the naked type stuff in portfolio margin account. Just a quick stroll through the IRA…currently controlling about 290k notional stock for 66k in buying power. Love the synthetic…that’s an effective use of capital!

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