No market access again today, but had a couple of GTC orders get hit
STO Mar 2 $80 puts @ $1.15
STO Mar 16 $75 puts @ $1.55
These were following @optioniceman trades from yesterday.
Daily Archives: Thursday, January 25, 2018
Rolled Up and One Week Out EXAS / Closing Early SPX BECS / Rolled SVXY / Short puts ETE
#shortcalls
$EXAS BTC 1/26 50 call STO $EXAS 2/2 52 call at even
#rollup
$SVXY BTC 2/16 130 call STO 3/16 140 call at additional .50 credit
#spxcampaign
$SPX BTC 2/16 2895/2870 BECS at 6.00 STO 1/17 at 1.80
#shortputs
$ETE STO 2/16 18.50 put at .50 Attempting to acquire stock
Jan 25 #Fuzzy Land and…
Jan 25 #Fuzzy Land and #PieTrades
Another very nice day in Fuzzy Land here. I feel very balanced in the portfolio right now. Hedges are working on the trouble makers. JNJ–nice move today. EA–moved the wrong way but I’ve learned to stay patient on the earnings trades that have a 100% backtest win rate, and I keep them small. AAPL got cut today, when I ran the backtest on it today it only wins 25% of the time for earnings run up, so I was a goof to even have that trade on. BUT I had a pre-earnings trade on for BA today that ran up big in just a few hours. I’ve got a nice mix of shorts and longs. With volatility up, it’s easy to hedge the Fuzzy Bears with a strike that allows beautiful profit even if runover.
1. Closed the FLIR Earnings Run Up Fuzzy for 47% profit, $415
2. Opened hedged SPY Fuzzy Bear Feb 284/284/285 @ 2.54 Jan31 280 hedge @.53
3. Closed AAPL pre-earnings fuzzy for net $1115 loss….BUT
4. Opened BA pre-earnings fuzzy and closed it 3 hours later for $2100 profit
5. Rolled MU Hedges to next week, and opened a new MU Fuzzy (Mar 43/43/41 for 2.22). I’ve collected a net $4200 in MU hedges…MU can be a little dramatic (like a toddler in a store), but that’s what makes for nice premium to sell for hedges. So MU is now in 3 of my 4 accounts.
6. VIX I compared long calls to a long fuzzy for VIX…remember the grocery store question? ATM Fuzzy costs the same as $2 OTM long calls, with higher deltas on the Fuzzy for better performance. So I opened Mar 21 12/12/11 Fuzzy, unhedged, for 1.57 as an overall hedge. I’d like to layer more of these in as vol/price drops.
7. AMTD, there’s a sell program going on in this ticker, I’ve got lots of cycles in front of this for hedges, so rolled today from 58 to 56 calls. There was a LOT of call buying on this today, probably due to ETFC reporting. I didn’t see the call buying affect price though, like it usually does. It’s sitting on a 50% retracement here. I’m grateful for protective puts + hedges for a nice counterbalance.
8. Added 2 small-lot DIA unhedged fuzzies at the bottom today. Feb 263/263/261 @ 2.45
9. Added MGM pre-earnings run up Fuzzy (early I know) Feb23 36.5/36.5/35 for 1.13
10. Although not technically a fuzzy since it was a synthetic only, I made 422% on a BX-synthetic, buying yesterday at .09 and selling today at .47. 5x my entry price. That was an earnings run up play.
11. PieTrades: so far my only ticker is LMT for this campaign. Sold 327.5 puts on Monday, was able to cover 1/2 of them today for .05. I assume other half tomorrow morning. That will equal $680, thanks @hcgdavis LMT reports Monday morning, so Monday or Tue next week will be good for the next round.
Closing LUV
Bought to close $LUV Feb 16 58/67 strangle for .90. Sold yesterday for 1.15.
#Earnings
AAL puts
Going out to August to get some premium at a relatively low delta (these are at 21).
Sold $AAL Aug 17 puts @ 1.17 with the stock at 52.95. IV is still elevated (IVR 57).
Bailed on AVGO
#ShortStrangles Closed $AVGO Feb 16th 250/290 strangles for 7.40. Sold legs separately for a total of 9.35, so profit of 1.95. Not rolling, I’ll just take profit and wait for earnings in late Feb.
LNG
Doing it again
BTO Feb 16 58/58/56 1.67 #fuzzy
Have order in to sell feb 2 61 .35
LUV
#SyntheticStock – Don’t want all of my eggs in the AAL basket so taking a shot with LUV…
Synthetic Stock:
Sell to Open LUV JAN 18 2019 60.0 Puts @ 5.89
Bought to Open LUV JAN 18 2019 60.0 Calls @ 6.64
Disaster Puts:
Bought to Open LUV JAN 18 2019 57.5 Puts @ 4.75
This gives a net debit of 5.50 for the Jan 2019 position. Add the 2.50 point max downside and get a max loss possibility of 8.00. Based on that, and the 51 weeks remaining in the trade I only need to average about 16 cents per week in sales to cover the absolute worst case scenario.
Giving it a little breathing room in the beginning until I see how the recovery goes:
Sold LUV FEB 2 2018 61.5 Calls @ .41
SVXY March
Still going really slowly on this.
Sold $SVXY Mar 16 70 put @ 1.20.
Will add at lower strikes and/or higher premium.
ISRG earnings
#Earnings Sold $ISRG Jan 26th 410/490 strangles for 3.00. Biggest UP move: 8.9%, Biggest DOWN move: -5.6%, Average move: 4.7%. My strikes are about 8.9% OTM
WDC
#Earnings – Total crapshoot here. Playing it bullish but have no clue…only theory is short puts are easier to deal with on a big move than short calls. 🙂
Sold WDC JAN 26 2018 86.5/93.0 Strangles @ 1.94
ISRG
#Earnings – Playing it at the expected move to the downside and twice the expected move to the upside…
Sold ISRG JAN 26 2018 425.0/490.0 Strangle @ 4.75
EWZ
Well crap! I’m running out of time and ran out of hope and ideas on this one, I can’t catch up and she’s not coming back.
STC EWZ 17JAN20 +41C-41P+36P, BTC EWZ Jan26’18 41 calls.
I walked down the tracks too long and the freight train hit me. Lost 0.85 on 10 contracts. The good news is you guys have shared ideas that have more than made up for that loss. Thanks!
SPX no more shorts, again
#SPXcampaign After we tested going negative this morning, $CAT bounced off its rollercoaster of a morning and helped nudge the markets higher. $NFLX is going parabolic again, too. My $KMB calls are now underwater; could have closed for a nice profit on Wednesday. So I think we go higher, driven now by earnings.
Closed $SPX Feb 9th 2875/2900 call spreads for 6.00. Sold for 4.50 yesterday. That was my only short hedge on SPX. I also went long with a risk/reversal that’s making me a whole lot more than this 1.50 loss.
LNG
STC 57/57/55 #Fuzzy 2.50 BTO 1-23 @1.22 113.00 profit 2 days
Put a close price in as a marker and was out this AM, hit it. Damm
$NFLX Rolling again
Rolled $NFLX Feb 2 265 calls up and out to Mar 9 275 calls for 1.42 credit with the stock at 269.71.
REGN
#SyntheticStock – Rolling weeklies again into earnings week as high as I can for a credit…
Rolled Feb 2nd 390 calls to Feb 9th 400 calls @ .31 credit
Rolled Feb 2nd 395 call to Feb 9th 407.5 call @ .19 credit
SVXY
STO January 2019,265 covered calls @6.70
VRX
#SyntheticStock – One of my last ones where the weekly was run over from almost the second I set the trade. Been running negative deltas for awhile. This pullback is giving me a chance to get out at even. Lousy fills out in 2020 or would’ve been a decent profit.
Sold Jan 2020 15/15/12 synthetic stock
Bought Apr 2018 16 calls
Made $36.50 after commissions! 🙂 🙂
SVXY
STO June 70 put at 4.70 on 1 contract. Just testing the water.
NWL
Sold to open September 21, 16 puts @.60
UNG
#SyntheticShortStock – Still messing around in the tastyworks account. I think I could get used to it. After seeing the commissions and fees it’s looking like an average of about 56 cents per contract with each leg capped at 10 dollars.
Sold UNG Feb 16 2018 25.0 Puts @ .63
AVGO
Nice bounce of 250 area so far. I hold #ShortStrangles Feb 16th 250/290
AAPL add
#Earnings #ShortPuts Added another $AAPL Feb 2nd 175 put for 5.20. The bet is we raise into and after earnings. But if not, I’m okay rolling or taking some stock at 170 cost basis.
FFIV closed
#Earnings Closed $FFIV Jan 26th 130/155 strangles for .16. Sold yesterday for 1.60.
UNP
#ShortPuts – Throwing these in the divvy part of the #401k ….
Sold UNP May 18 2018 125.0 Put @ 3.70
Sold UNP May 18 2018 120.0 Put @ 2.45
SVXY
The 10 year treasury note is now at 2.66% and the SVXY continues to see selling even though we are still in contango. I think that some institution is taking profits and getting ready for a correction. I have a large position in the puts of the SVXY from 40 to 60 and don’t intend to add to it until we get a correction. I would also not mind being assigned at those levels and sit on the position for the next 10 years.
REGN
#SyntheticStock – Clearing the 50 ma and looking like it’s finally getting some air under it. Rolling weekly out and up. All weeklies are now next week with earnings the following week. Lots of options going into that high IV.
Rolled REGN JAN 26 2018 380.0 Call to FEB 2 2018 390.0 Call @ 1.70 debit
$SVXY Rolled my Jan 26th…
$SVXY Rolled my Jan 26th 120 Puts out and down to Feb 16th 95 Puts for .75 credit. Originally sold for 2.45 on 1/16
GS
The stock is making new highs and I decided to roll my Feb. 2nd. 267.5 call to Feb. 9, 270 calls for a credit of .15 cents. I just rolled these yesterday. I would be better off not selling the nearby calls.
FFIV LRCX Earnings
#Earnings – Worked great…I’m out and moving on down the road towards ISRG and WDC.
Bought to Close FFIV JAN 26 2018 130.0/155.0 Strangles @ .19 (sold for 1.33)
Bought to Close LRCX JAN 26 2018 200.0 Put @ .05 (sold for 1.80)
Bought to Close LRCX JAN 26 2018 202.5 Put @ .65 (sold for 2.70)
#Fuzzy just completed another on…
#Fuzzy just completed another on KR this morning. positive result thanks for the direction from you all. Profit was 40% and used a 2-lot
LRCX closed
#Earnings Closed $LRCX Jan 26th 200 puts for .05. Sold yesterday for 1.20.
Options Bistro 