SVXY

Assignments in main account. I had some short calls that were in trouble (the good ‘ol days) that I had reversed rolled into put spreads. Using those spreads saved my bacon in this account. Short sides assigned at 120 and 160 but closed the long puts and added in the premium from the original call sales and received stock at basis’ of 32.66 and 23.53

I’ll hold these and sell against them…

Sold SVXY Feb 16 2018 12.0 Calls @ .56
Sold SVXY Feb 16 2018 12.0 Calls @ 1.09

PYPL

#SyntheticStock – Still catching up…LOL Weekly sales….

Bought to Close PYPL Feb 09 2018 78.0 Calls @ .02 (sold for 1.37)

Sold PYPL Feb 16 2018 75.5 Calls @ 1.00

SVXY thoughts

After getting back home and having some time to look over this whole issue I’ve got some thoughts about how best to recover some of the drop while lowering the risk. This all requires some assumptions:

1. SVXY IS NOT OUT OF THE WOODS YET AND COULD STILL BE TERMINATED!
2. After the Aug 2015 drop the stock recovered 50 percent first year in choppy trading so best we could expect would be 20-25 a year from now.
3. Put premium will remain juicer than call premium for quite awhile.

I’m considering using the #pietrades strategy as a repair possibility. It could be done at the same size as the stock assignment or slightly smaller to reduce risk. Could be laddered in also. For example if you were assigned 1200 shares only run the repair with six or nine positions. This would minimize risk in the event of a termination and if it survives there’s absolutely no hurry to get back to even. It will be a long process.

So:

1. When assigned stock immediately sell it or sell at the money calls until stock is called away. This would establish the total loss realized so far. Set that number aside and use the #pietrades to reduce it over time.

2. Sell at the money puts for next week (or ladder out one, two, or three weeks). This could be nice since you could sell straddles each week after the initial assignment.

3. Continue this until assigned

4. When assigned immediately sell covered calls at or slightly above the basis of the stock.

5. Continue that until stock called away

6. Rinse and repeat

7. Continue this until the stock has doubled. At that point we’re probably safe. In 2015 the stock really started climbing after that first year.

8. Continue #pietrades or go synthetic long with EXTRA disaster puts!!

Thinking out loud here….

Good night

TQQQ

I am thinking of putting on a bearish Fuzzy trade on QQQ or TQQQ if we get a good bounce next week. Any thoughts?

Market thoughts

I think we get a bounce next week but it is a chance to sell. If the 10 year can hold at 3% or lower the market can stabilize but if the FED raises rates and the ten year goes higher in yield, this market is done. If the DOW, S&P, and QQQ close below the 200 day MA, it will not be pretty.

TSLA earnings

#Earnings – Originally sold FEB 16 2018 310.0/395.0 Strangle @ 4.15 (the week after earnings) Stock is weak so closed the original call and added another one lower.

Bought to Close TSLA FEB 16 2018 395.0 Call @ .20

Sold TSLA FEB 16 2018 320.0 Call @ 4.10

Current position 310/320 strangle @ 8.05 for next Friday

ADSK

#SyntheticStock – This is a repair trade that’s getting closer to even. Current weekly is in the week before earnings. Saving earnings week for a nice juicy premium sale. Roll down of the weekly…

Rolled ADSK MAR 2 2018 118.0 Calls to ADSK MAR 2 2018 111.0 Calls @ 1.24 credit (2.19 total now)

REGN

#SyntheticStock -Roll down of the weekly into earnings really helped with the additional premium.

Bought to Close 3 REGN FEB 9 2018 345.0 Calls @ .10 (sold for 6.20 avg)

Sold 3 REGN FEB 16 2018 337.5 Calls @ 4.50

CELG

#SyntheticStock – Another week…so far easily collecting 3 times what’s needed to cover max loss even on this shorter term position.

Bought to Close CELG FEB 9 2018 101.0 Calls @ .04 (sold for 1.91)

Sold CELG FEB 16 2018 95.0 Calls @ .95

MU

#SyntheticStock – Nice gain on the weekly…volatility is really great for the premium sales. Core is July 43/43/41.

Bought to Close MU Feb 09 2018 43.0 Calls @ .02 (sold for 1.40)

Sold MU Feb 23 2018 41.5 Calls @ 1.13

Good morning or afternoon

It depends on your time zone. Nothing new, just more option assignments on SVXY today. I have small amounts in Feb., Mar., and April, and then nothing until January.