#VIXIndicator, like last week, we got two consecutive closes below the 78.6% line, but then are denied the third. So no Upside Warning. Maybe this market wants to top out.
$SPX STO 1/19/2018 2585/2610 BUPS @ 1.65
$SPX STO 1/19/2018 2575/2600 BUPS @ 1.30
$SPX STO 12/20 2665/2690 BUPS @ 3.30
Right now I have on 12 #Fuzzies and the total amount of hedge/income premium that is sold and pending collection is $11,480 (spread mostly between this week and next week). Here’s why I love Bull Fuzzies:
–Less risk than a covered call (due to protection)
–Way less buying power than a covered call
–Same benefits of a covered call (except dividends)
–Positive Vega/Positive Theta (a covered call doesn’t have positive Vega)
–Better design than many diagonals I see
–When opened using 90-120 DTE but closed before 45DTE I should be able to maintain a really good chunk of the protective put value that would be exposed to theta decay
I know you know all this. Here’s where it gets interesting, and where I expect to now become your “Fade Muse”
i closed the #fuzzybear today. for a decent loss. Listen I hated this trade. I timed it all wrong. I put it on at the bottom of a swing vs. the top. I sized it too big for SPX. I made it a Feb trade so big theta decay was going to start soon on the long put. I’ve realized I like fuzzy setups (long or short) that cover the trade debit in 4 weeks or less, and SPX doesn’t do that. I’ve been battling it for this whole up move. Hedges can’t keep up with it. It’s beyond effective hedge range now. I ran every scenario and I just didn’t see a way out short of a big market crash, all the while theta was burning away. I was running scenarios in my head at night for saving the trade. I’ve been watching this week for a VIX upside warning to hit today (it didn’t). I can see some liquidation breaks hitting the market, but drivers are too strong for a big hit I think. Of course anything can happen, but I don’t want big (BIG) bets on market crashes in my portfolio. Today’s dip gave me the opp I needed to wipe it clean and wait for a better setup in the future.
Paid my 4Q taxes today, so just took the hit on it today. When all the laundry was washed and dried and put away it was exactly a $14K hit (net of premium collected). Luckily all the other fuzzies have been financing that so my account balance has been running in place.
We all love SVXY and UVXY, but have you ever wonder how it worked? Ok, fair enough, then here is some bedtime reading…a real snoozer! https://sixfigureinvesting.com/2016/08/how-does-svxy-work/
#SPXcampaign Picked up a quickie long play for a potential pop tomorrow due to tax bill. Mind you, I think we could see a “sell the news” dump, but I lean toward a rally thanks to the holidays.
Bought $SPX Dec 22nd 2700/2720 call spreads for 1.50.
BTC 2 (split) Jan 19 37.50 puts @ 4.30 x 2 8.60, sold 1 (pre-split) Jan 19 70 put @ 14.56 on 4/10/17
STO 1 Jan 19 65 put @ 10.40 …hmm, how interesting “1040” on this day.
This was a personal best, keeping a trade for 8 months! Picked up a few bucks rolled to get a few more, plus a grand on margin, let’s see how long I can keep this one?!
$SVXY #ShortPuts – Sold SVXY Feb 16 2018 60.0 Puts @ 1.14 with the stock at 128.74
btc on gtc @ .70 (50%) condor 2715/2735 call-2620/2600 put DEC 22 sold Monday @1.50
per chart from expected moves on spx
might do again next Monday.
This closes the trade started on Nov 2nd when I sold 200/180 put spreads for 4.15, x2 for max profit of 827.90, max loss of 3,172.10. Stock tanked and I rolled the spreads, got assigned early, and I’m finally out with ending profit of $327.56
#SPXcampaign Sold $SPX Jan 18th (monthly) 2610/2585 put spreads for 1.60.
STO the other side of the IC for Jan 5. Reversal triggered at lunch time (keep in mind not shorting, just a good place to leg into the IC as momentum finally stalled).
SPY 271.5/275 call spread at 0.28. Position now the 261/257 puts with the calls for 0.21 and 0.28 credits 5 contracts so only $2000 risk.
Could close the put side at profit already but will let the theta work on the IC for a few days/weeks, then roll to next cycle.
Will add a new one Thurs or Friday for Jan 12 expiration. Maybe 1 sided or maybe condor depending on the signals. I think going forward timing is going to be more important for options sellers so will be using the alphashark tools to try and stay on the right side of the market.
That’s all, 2 minute lunch day. Everyone trying to get into the office before the holiday or travelling!
STO January 2019, 60 puts @ 9.20, this completes my ladder out to 2019 until we get a correction or much better prices.
$SVXY #Margin – Margin pressure is forcing me out of some positions today.
Bought to close SVXY Jan 100.0 Calls @ 30.10/29.80/29.50
Bought to close 1 SVXY Mar 100.0 Call @ 34.25
Bought to close SVXY Jan 10.5 Puts @ 0.01
STO January 19, 66 puts @.67
Bought to close January 37.5 covered calls @91.00 to take a tax loss to offset my gains for this year. I intend to just keep the long position for a long long time.
STO CSX Dec29’17 55 calls @ 0.44
$NBL #CoveredCalls – Sold NBL May 18 2018 30.0 Calls @ 0.85 with the stock at 26.52