#SyntheticStock – Taking my own advice with this one. Sold the covered stock on the bounce and rolling it all into #SyntheticStock. Going in at twice the size for only one fifth of the cash required to hold the stock while drastically reducing risk.
Stock was originally assigned at 470.0 and weeks of call selling has reduced that to a 416.70 basis. Sold the covered stock position this afternoon for 381.40. I’ll roll the 35.30 loss into the basis of the synthetic by adding 17.65 to that cost (since synthetic is twice the size).
Bought to Open REGN JAN 17 2020 400.0 Calls @ 74.06
Sold to Open REGN JAN 17 2020 400.0 Puts @ 71.68
Bought to Open REGN JAN 17 2020 390.0 Puts @ 66.62
Net debit of 69.00 plus 10 dollar downside risk plus 17.65 from existing stock position for a total max loss possibility of 96.65. With 107 weeks for the trade to run only need to sell about 90 cents a week to cover entire worst case scenario.
Sold REGN JAN 5 2018 397.5 Calls @ 1.95
NUE: I ended up closing this one for a net net loss of $340.00 How did I lose? It started off as a lovely trade. The round-one hedge expired with full profit. But the company then came out with lowered guidance and the underlying tanked over 3%, so I rolled the next week’s hedge down $2.00 to my synthetic line. We then saw a literal whipsaw correction which left me chasing each week with debit rolls to avoid assignment on my hedge, and ex-div is Thursday. Continuing debit rolls to get me out of assignment territory on the short calls would leave me with protective puts $15.00 ($15,000) away with no “bank” due to debit rolls. To me, chasing only makes sense when you know the underlying is going to stay bid, and to me a $340 loss on a 10-lot is pretty darn close to a scratch. I’d rather do a reset on this or another, vs. having $15K risk on a less-than-$100 stock.
AAPL: This takes the place of NUE. BTO Apr 170/170/160 for 5.27 debit, STO Jan 5 172.5 call for 1.32 cr
QQQ: BTC Dec 29 159c for .03, STO Jan 5 158 c for .47
CMCSA: I did a search on SP500 stocks with a weekly ATR of 2 or less, looking for stocks with decent premium for quick core debit coverage, but stocks that stay relatively stable with price movement. I’m just still playing around with finding the perfect candidates for #fuzzies. Take JPM for example…seems to stay in a very nice range for collecting that premium every single week. So anyway, CMCSA came up on the list, boring maybe, we’ll see how it works. BTO Apr 40/40/35 for 1.38 debit, STO Jan 5 41 call for .56.
BABA: Caught some bullish #UOA on this today, and has lovely weekly premium. Chart technicals not so great. But decided to do a 1/2 size fuzzy. Apr 170/170/160 for 9.43 debit (there’s a few bucks intrinsic in this), Jan 5 175 c for 1.93 cr.
I’ll do another full recap this Friday with every open position, net collection and debit recovery.
BTO MYL Apr20’18 +42.5call -42.5put +40put for 1.87. Had an order to sell calls for next week but didn’t get filled so I’ll get back to you tomorrow. Hopefully MYL will settle down and move sideways a couple weeks.
#SyntheticShort – Thing’s been on a nice run right up to the 200ma so easing back into a short position. Starting out with about a 40 percent position and going out to Jan 2019. Long GLD so this is a nice hedge that I rode down last time too. I’ll be looking to add the rest of this at NUGT 40 and 45 if we get there…
Sold to Open NUGT JAN 18 2019 32.0 Calls @ 9.04
Bought to Open NUGT JAN 18 2019 32.0 Puts @ 10.69
Bought to Open NUGT JAN 18 2019 34.0 Calls @ 8.43
Net debit of 10.08 with max loss of 12.08. With 55 weeks for the trade to run need to average 22 cents per week to cover worst case scenario.
Sold NUGT JAN 5 2018 29.5 Puts @ .36
$M #ShortPuts – Bought to close M Jan 19 2018 19.0 Puts @ 0.01.
Originally sold in May at 1.19 as a #FallingKnife trade
$SPX STO 1/26/2018 2575/2600 BUPS @ 1.70
APPL. STO 5 JAN 18 175 CALL @.65 Stock @ 170.46 Little more aggressive then I would normally sell #syntheticstock
#spycraft @jeffcp66 style
Trying to roll the Jan 5 IC but having some tradestation issues.
Here is the plan, there is a $180 or so profit on the IC that week, gamma risk increases this next week so I have orders in to roll the Jan 5 261 put to Jan 19 260 put. The Jan 5 257 put to Jan.19 256 put.
The call side the Jan 5 271.5 to jan 19 272 and the Jan 5 275 to Jan 19 276.
Should go for credits around 0.2-0.3 per side depending on final credit.
Was going to open another week later this week but since we have a profit will take it and wait another week or possibly run the ladder 2-4 weeks out instead of 1-3 weeks. Keeps us out of the gamma risk.
#Cryptocurrency – Added to my lottery tickets.
Bought to Open IOTA @ 3.86
ETH @ 160.66 basis (Ethereum)
LTC @ 56.94 basis (Litecoin)
XRP @ .254 basis (Ripple)
All for fun….skipping the blackjack tables next couple times through Vegas 🙂 🙂
APPL. BTC 29 DEC 17 177.5 CALL @.04 STO 12/22 @0.42 #syntheticstock.
Bought To Close 2 $TRTN Jan 19 40 calls (covered) @ .75. Sold To Open -2 @ 1.55 on Dec 20 taking 50%.
Currently in stock with #CoveredCalls but chart looking interesting for going synthetic here. Building a nice base with great weekly premium. Slightly underwater on the stock so looking at rolling into synthetic at double size similar to EWW earlier. Much much lower cash outlay and much much less downside risk on the synthetic.
Sold $NUGT Jan 18 2019 64 call @ 3.65. Highest strike.
Been a great ticker this year but odds caught up with me and was early exercised on Jan monthly 54 strike puts. Sold the covered stock on the bounce and rolling it all into #SyntheticStock. Going in at twice the size for only one fifth of the cash required to hold the stock.
Stock when assigned was at a 51.70 basis and sold for 47.65 this morning. I’ll roll the 4.05 loss into the basis of the synthetic by adding 2.03 to that cost (since synthetic is twice the size).
Bought to Open EWW JAN 17 2020 48.0 Calls @ 6.90
Sold to Open EWW JAN 17 2020 48.0 Puts @ 6.79
Bought to Open EWW JAN 17 2020 46.0 Puts @ 5.65
Net debit of only 5.76 plus 2 dollar downside risk plus 2.03 from early exercise loss for a total max loss possibility of 9.79. With 107 weeks for the trade to run only need to sell about 9 cents a week to cover entire max loss.
Sold EWW JAN 12 2018 49.0 Calls @ .34
This was originally a #TakeOneForTheTeam trade. I tried…LOL Seemed to help a little at least. Booking it for good gain and looking to sell similar on next pullback.
Bought to Close SVXY DEC 29 2017 130.0/125.0 Bull Put Spreads @ 1.19 (sold for 2.98 and 2.80)
$NUGT #CoveredCalls – Sold NUGT Mar 16 2018 40.0 Calls @ 1.41.
$HP #ShortPuts – Bought to close HP Mar 16 2018 37.5 Puts @ 0.05. They won’t trade any lower and it’s almost 3 months until expiration.
Originally sold in August at 1.70, 1.90, 2.05 and 2.20 as #FallingKnife trades.
$SVXY #ShortPuts #IRA – Got a few off before SVXY bounced again
Sold SVXY Jan 19 2018 60.0 Puts @ 0.55
Sold SVXY Jan 26 2018 60.0 Puts @ 0.68
#SyntheticStock – Taking advantage of the pullback to book this one. Been fighting the front month ITM calls for awhile. Good chance to close it for a nice winner and look to reset possibly after earnings.
Sold to Close AAPL JAN 17 2020 155.0 Puts / 155.0 Calls Synthetic Stock @ 18.10
Sold to Close AAPL JAN 17 2020 145.0 Disaster Puts @ 10.70
Bought to Close AAPL FEB 2 2018 167.5 Calls @ 7.45
Net credit to close of 21.35. Basis in the position after other front month sales was 17.38
Net gain of 3.97 per spread. I’ll take it considering the front month sales have been DITM from almost the very beginning.
#SPXcampaign Sold to Open $SPX Jan 26th 2600/2575 put spreads for 1.70.
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