#pietrades and skew I have…

#pietrades and skew

I have noticed over the last few weeks that a lot of tickers have one sided skew. Just something else for us to take advantage of and increase returns.

For instance, SPY and all the other indexes seem to have put skew meaning the puts are worth more than the calls. Makes sense, a lot of people are hedging and buying protection. So makes more sense to sell puts on these.

However, a lot of individual names skew to the call side. Even AAPL which drags the rest of the market has a little call skew even in the weeklies. Makes more sense to sell CC or set up #fuzzies on these. Most of the leveraged ETFs skew to the upside/call side.

So going forward the #pietrades will be set up taking advantage of this skew. In a limited back test it looks like it could result in an additional 15-25% returns annualized. Not chump change!

So in the future #pietrades will either be CC, naked puts, or covered straddles depending on direction but also where I see an edge in the put/call skew. However, where I may normally sell a put, I may do an ITM CC if it looks like the skew will give an advantage. Also if I have a strong upside directional bias may set the initial trade up as an ATM covered straddle.

If anyone else finds additional ways to suck more premium out of the market on a weekly basis please post.

Taking advantage of this with synthetics aka #fuzzy may work as well.

#hashtags, #pietrade

SVXY assignments

January 2019, 45 puts

January 2019, 50 puts

January 2019, 55 puts


CELG, 115 covered calls

CME 167.5 calls, fuzzy

DGX, 100 covered calls assigned

HRL, 35 covered calls

SVXY assignments: 80 puts, 65 puts, and 55 puts