$MSFT STO 3/16 95 call at 1.15 (Covered)
Feb 21 #Fuzzy Land
Hi there everyone! It’s been a couple days since I’ve posted, but I didn’t want to bore you with the same trades. As it turns out, I’m really liking the #AtomicFuzzy! The built in hedge is working really great this week. I was having problems sleeping over the weekend, when I can’t sleep I plan out trades in my head. The first trade I mapped out was a series of laddered SPY fuzzies in Apr/May/Jun, unhedged, totaling 250 contracts (across multiple accounts) when fully built. This would equal 25,000 shares of SPY, total risk approx $175,000, with about $87,500 profit on every $5.00 up move in SPY (assuming .7 delta). That was a fun dream. The next night I designed the same trade but as an Atomic Fuzzy. 250 contracts, risk is now aprox $87,500, and a $5 move in spy = $43,750 (assuming .35 delta).
I’ve got Atomics now on SPY, QQQ, TBT, JPM (based on #UOA today–Mar 120 calls). 45 SPY contracts, 40 in QQQ. I won’t be adding anymore unless I can get some good strike diversification.
Q’s: May 166/166/164 @ 5.86 170/175 Call Credit Spread @ 2.00 double size.
SPY: Apr 272/272/270@ 5.91 278/283 Call Credit Spread @ 1.69 double size.
There’s a chance we’re entering a range bound market here for awhile, meaning I will need to be opportunistic on taking profits, vs if we are in a trending market (that’s another reason why I went heavy on Atomics vs Unhedged). But I am trying to set up longer term trades that require little management. I do realize that SPY and Q are heavily correlated. Until more profits start getting booked, it’s still an experiment! BTW, Atomics won’t work on Fuzzy Bears due to the put skew, you can’t get enough selling put spreads to even come close to covering the cost of the protective calls.
p.s. My 45 SPY contracts have about $18,000 total risk, for virtual control of $1,215,000 of SPY shares. The beauty of fuzzies! I probably won’t post a lot unless some of these start coming off, or need some kind of management.
#Fuzzy – BTC UPS Feb23’18 110 calls for 0.05, sold for 0.43. STO UPS Mar02’18 109 calls for 0.43.
STO XBI Mar02’18 95 calls for 0.48
#SPXcampaign Sold $SPX Feb 28th 2675/2650 put spreads for 3.80.
Sold $STMP Feb 23rd 150/230 #ShortStrangles for 2.30.
Biggest UP move: 38.1%, Biggest DOWN move: -22.6%, Average move: 17.1%. My strikes are +23.0% and -19.8% OTM.
#SPXcampaign In pre-market, closed on GTC order:
$SPX Feb 23rd 2775/2800 call spreads for .45. Sold for 5.70 on Feb 6th.
Sold on the post-Fed spike: SPX March 23rd 2860/2885 call spreads for 1.75
#Earnings – This thing could go anywhere but at least it’s cheap enough to roll into synthetic if it tanks…
Sold ROKU FEB 23 2018 40.0/60.0 Strangles @ 2.00
Stock at 51 with an expected move of 8.25. Weekly IV of 248%…that is some serious IV priced in!
#Earnings – Had to work a couple quarters ago to get a profit out of this ticker so going back in again for round two…IV for the week an incredible 194%.
Sold STMP FEB 23 2018 160.0/230.0 Strangles @ 3.20
Stock at 189 with an expected move of 24.30…skewing this slightly bullish.
Lowest VIX reading since the correction and on track to have Downside Warning canceled today…. UNLESS, we get another round of selling, which might spike VIX right back above 18. 2 hours to go…
$VIX and /VX are within pennies. We’ll see what happens with the Fed minutes. As long as the market doesn’t freak out, could be in contango very soon.
SMH STO the 9 DTE 103 put at 0.89, 3 contracts so $261 credit.
Trying to collect 900 a week on 3 contracts with 3-4 names. Staying close in the 750-800 range.
#Fuzzy – BTC SLB Feb23’18 68.5 calls for 0.04, sold on Friday for 0.21. Gonna wait and see how the market reacts to the Fed minutes before selling calls for next week.
Have been tweaking my charts a little to better pick up the reversal points.
The SMI trigger was giving too many signals and too many false signals. Went back to percent r with a setting of 55 based on a netpicks reversal system. Picks up the extremes a little better.
Not quite as good as @fibwizard and still not trading fully directionally but this may help me sell options more accurately at the pivot points.
Any feed back or additional thoughts appreciated.
I was exercised over the weekend and last night on a few…
Jun 2018 120 puts (part of 120/105 reverse roll…basis 24.85)
Jan 2019 45 puts (basis 41.52)
Jan 2019 135 puts (part of synthetic with 132 disaster puts….basis 48.55)
$SPX Morning all. #SPXcampaign Closed my Feb 23rd 2840/2860 BeCS for 0.05. Amazing how long that took. This was the cheap side of the IC so not much profit from the 0.40 premium taken in. Hey, buys a beer to drown my sorrows from the stopped out BuPS side.
I rolled my Feb. 23 190 calls out to March 9, 195 calls for a credit of .34 cents. This is part of a 2019 Fuzzy.
I am still getting assignments. Today I was assigned the January 2019, 40 puts.It is reducing my average cost to below $50 so if we can get a stable market I have a chance of breaking even some day.