Have a Great WE Guys & Gals
Daily Archives: Friday, February 9, 2018
Options Expiration for 2/9
$NUGT Feb 9 41 calls
$NUGT Feb 9 42 calls
$UVXY Feb 9 26 calls (was watching this closely to potentially roll out as it topped 29 but decided to wait and see what the end of the day brought–I got lucky)
No assignments, at least today. This week has been an assignment sh**storm with all the SVXY I now own. Still looking for us to go back into contango on the VIX futures next week with a lot of help from the expiring Feb contract on Wednesday. If volatility calms a bit next week a flat curve/slight contango should be in place by Thursday. Then maybe we can start looking at laddering in some SVXY covered calls.
Have a great weekend everyone.
Have a nice weekend to everyone
It has been a hell of a week and my mark to market has taken a big hit like many of you as well. But we will make it all back. No expirations today.
Correction history
Here are all 36 10% corrections since 1980. Note: a year after the lows, stocks are up a median of 23% and two years later up 36%.
Fidelity bars purchases of SVXY
I can’t find the story on Bloomberg but just received this link in an email from Seeking Alpha:
https://seekingalpha.com/news/3329965-fidelity-bars-purchases-inverse-vix-etf?uprof=37#email_link
SNAP calls
Borrowed this idea from TastyTrade.
Sold $SNAP Mar 16 20 calls @ 1.20 with the stock at 18.96. IV rank is high at 74. I’m looking at the decreasing volume and slowed momentum after earnings this week. Would seem to need another big catalyst to push it back up to the highs from Wed. Will be watching closely. Planning to take it off for .60 (50% profit).
SPX hitting the 200 day sma, that’s far enough Mr. Market!
AGN #FallingKnife Sold $AGN Aug…
AGN #FallingKnife
Sold $AGN Aug 17 105 put @ 1.50
ALXN #FallingKnife Sold $ALXN Jul…
ALXN #FallingKnife
Sold $ALXN Jul 20 75 put @ 2.00
SPX trades
#SPXcampaign Got caught in the down flush… these all could have been closed much better if I’d waited for the bounce.
In chronological order:
Sold Feb 16th 2650/2675 call spreads for 6.20
Stopped Feb 23rd 2450/2425 put spreads for 3.70. Sold for 2.00 yesterday.
Stopped Feb 12th 2550/2525 put spreads for 7.00. Sold for 3.75 on Tuesday.
Stopped Feb 9th 2565/2540 put spreads for 6.60. Sold for 2.20 yesterday.
Sold Feb 23rd 2690/2715 call spreads for 4.05.
Closed on GTC order: Feb 12th 2700/2725 call spreads for .40. Sold for 4.10 yesterday.
Stopped Feb 21st 2450/2425 put spreads for 3.65. Sold in #CondorRoll for 4.35 yesterday.
The only two put spreads I have remaining are the March 9th with short at 2300 and 2200. That’s likely all I will hold over the weekend, as we could have a Margin-Call Monday with a big gap down.
Trying for a put ladder in AMGN
From Apr to Sep
First fill: Sold $AMGN Jun 15 140 put @ 2.40
Back into DRIP
Sold $DRIP Apr 20 24 call @ 1.70 at the highest strike with DRIP at 17.99
BMY
#Fuzzy – BTC BMY Feb09’18 63 calls for 0.03, sold for 0.15. STO BMY Feb16’18 63 calls for 0.53. Y’all be careful it’s lookin slippery out there.
Whipsawed
#SPXcampaign Not a great morning on my SPX trades. Closed most put spreads near the lows. I think we have lower to go but i could have managed it much better. I will detail later.
DUST on the move
#ContangoETFs Sold $DUST Jan 2019 45 call for 4.80.
Getting KOLD again
Sold $KOLD Apr 55 call @ 1.20. Highest strike.
Looking to replace the Feb 50 and 55 calls which are likely to expire next week.
CBOE #FallinKnife Sold $CBOE Sep…
CBOE #FallingKnife
Sold $CBOE Sep 21 70 puts @ 1.80 with the stock at 97.48. Lowest strike in Sep.
ADSK CELG MU REGN SVXY
On the road all week visiting family so no time for updates today…I’ll try to catch up on the weekend. Have a great day everyone. Let’s get SVXY out of intensive care!
AAPL
$SPX Closed my ill conceived…
$SPX Closed my ill conceived BuPS Feb 28th 2379/2370 for 1.80. Originally opened for 0.90 yesterday.
The last of the $SVXY was assigned.
VXX puts bought
#VXXGame Added to a position I started in September:
Bought $VXX June 25 puts for 1.25.
Cramer
Jim Cramer had a 9-minute diatribe this morning about UVXY, XIV, etc. First 10 minutes of Squawk on the Street if you can find it archived later. He stopped short of calling for the SEC to look into closing such products, but said if they were to do that, the market would bottom. He believes the selling of stock has been driven by traders liquidating to cover margin calls in volatility products.
SPX
The S&P closed at 2581.00 – So today’s circuit breakers are:
Level 1. 180.67 pts (7%) or 2400.33
Level 2. 335.53 pts (13% total) or 2245.47
Level 3. 516.20 pts (20% total) or 2064.80
ZACKS
Rough day in the markets yesterday. But as we’ve been saying, the volatility is here to stay for a while as the markets carve out a new base.
But this pullback is transitory in my opinion, and I think we’re getting close to the end of this correction (if we haven’t already seen it).
I have support for the Dow at 23,500, which is only another 1.53% below yesterday’s close. And I have support for the S&P at 2,550, which is only another 1.22% below yesterday’s close.
The media will over-sensationalize the recent pullback. Don’t listen. This is normal market behavior after a spectacular, correction-free run-up over the last two years. This is healthy. I know it feels terrible. All corrections do. But I believe this is just that – a correction in a historic bull market with lots more upside to go. And not the beginning of the end.
The underlying economic fundamentals are strong and only getting better. The interest rate hysteria is wildly premature. And there’s nothing on the horizon to keep this market from continuing its uptrend.
Just have to patiently endure this correction. Part of trading and investing.
In other news, Weekly Jobless Claims fell more than expected, declining by -9,000 to 221,000.
And Chain Store sales showed retailers are “reporting accelerating rates”.
Once again, more good news on the economy.
Will be interesting to see what the market does today. But if it’s down, don’t despair. Corrections are normal. And healthy. And when it does go back up, we will have a new base underpinning the next leg higher.
Best,
Options Bistro 