Hey @fuzzballl what do you…

Hey @fuzzballl what do you think about bi-directional #fuzzies on range bound names?

I was looking at some of my recovery trades and this may work. Buy LEAPs calls and puts, and sell weekly straddles/strangles against them. You can leave the original longs on, then just move the straddles and strangles around depending on how it moves. On most names could take in $2-4 credits per week.

Would not really need a hedge because you are long the put as well as the call but there may be a margin requirement if your strikes don’t line up after a while. Looking at 1 year leaps it would probably work. 2 years would take a few weeks just to break even. Here is a WDC example using Jan 19 leaps. I used to do this with multi -strike calendars and it was hugely successful until it just stopped working (once the VIX stayed below 15). However, it benefits from increasing VIX.

2017-12-01-TOS_CHARTS

#pietrade candidates for this week…

#pietrade candidates for this week or next 2 depending on how you want to trade in order I see best potential returns. It was hard to find names not way over extended, these are kind of mid range within their ranges.

1. NSC any strike between 136-140 should work. Personally I am going with 136-137 ITM CC or may go ATM depending on how we open tomorrow.

2. MAR slight call skew but puts are still good.

3. LNG same

4. FSLR definite skew to call side but either works.

Personally I am going CC if there is a skew and I do not have a directional bias.