Closed Early / Short Calls

Closed Early on GTC Orders
$SPX BTC 3/9 2800/2775 BECS @ 2.00 STO at 6.00
$SPX BTC 3/16 2875/2850 BECS @ .30 STO at 1.80 Thank You @jeffcp66
$NVDA BTC 3/16 270/260 BECS at .80 STO at 2.30
$NKTR BTC 3/2 75 put at .30 Sold for 4.70. Earnings AH today. Earnings were good but only cost me .30. Thanks to @fuzzballl and @jdietz1954 for the idea.

$MTN STO 3/16 210 call at 3.60
$SQ Rolled BTC 3/2 46 call STO 3/16 48 call Two dollars up and additional .40 credit

Credit spread adjustments, will be…

Credit spread adjustments, will be good for #spycraft trades and #spxcampaign among others.

Reading the new book “trading options for edge”. Fairly technical but about half way through now but hit on an adjustment for spreads that is so simple, why didn’t I think of that? Maybe even easier and more profitable than rolling or can at least scratch a trade.

For this to work you have to set up a credit spread that has at least 1 strike between them. For instance you could not do it with a 267.5/267 spy spread but you could do it with a 267.5/266.5. Also need to keep some cash ready for the adjustment.

So if your short strike is in danger of being breached, just buy a few options between the strikes. So say you had the 268/263 spy put spread and about to breach the 268 strike. Say you had 10 contacts, you could buy 3 or 4 of 265 puts and it would basically neutralize your gamma and delta risk. The other benefit is if it keeps moving once you are past your long strike would start showing a profit again because you are net long options and basically have a back ratio spread, just with tweaked strikes. Would work great on a day like today.

Worst case scenario is it stalls out after breaching your short strike but at least you have reduced the max loss a lot and if there is still enough time in the trade you may be able to scratch it for even.

As I said, duh, why didn’t I think of that. I have 8 different ways to adjust a losing credit spreads but this is probably the easiest and most effective. Much easier than diagonal, calendar, butterfly, BWB, back ratio or any of the other adjustments because you do not extend duration. It will all close out at the same time.

I will try it in a week or 2 once I clear out this round of trades. May intentionally set one up to blow up and see what happens.

I also was looking through past #spycraft type trades and the ones that were put on 21 or more DTE had better results than the shorter term ones. More time for a big move to reverse.

Going forward, these trades with be 21 or more DTE and if they need adjustment this will be the primary adjustment.


#SyntheticStock – BTC SLB Mar02’18 67.5 calls for 0.03, sold for 0.24. Gonna wait and see what tomorrow brings to sell calls for next week.



STC 2 April 06 2600 Long side puts at the low earlier, for 44.50, bought as a BUPS on Feb 27, at 14.40..
gain 158%

SPX trades 2

Sold $SPX March 15th 2750/2775 for 3.50, as a #ReverseRoll from March 23rd puts stopped earlier.
Closed March 2nd 2710/2735 call spreads for 2.80. Sold for 9.20 this morning.
Closed March 16th 2820/2845 call spreads for .65. Sold in a #CondorRoll for 7.85 on Tuesday.

Could be a bounce here, folks.

Good thing I chickened out…

Good thing I chickened out on the /es put side of the strangle. Came home and /ES had swung 40 points from high to low. WTF?!

Not to discuss politics but seems like our government wants to start a trade war, that’s all I could find for the big swing. That will not be good for the market but may be good for trading!

I had some #pietrades lined up for tomorrow but they are all ITM on the puts now or OTM on the calls so will just be rolling NSC, LNG, MAR, GM for more premium or in the case of GM and LNG taking assignment and start selling calls Monday.

SVXY headed the WRONG direction, that is not helpful at the moment but at least the adjustment seems to be tempering the drop.

UVXY call

#VXXGame Sold $UVXY May 18th 25 call for 3.75

SPX trades

#SPXcampaign Spent the morning converting the account to be short on $SPX. Took most action before the spike higher, so not ideal entries and exits, but good enough now that were down almost 2%.

In chronological order:

Bought to Open LONG March 9th 2625/2600 put spreads for 2.60.
Sold to Open March 29th 2840/2865 call spreads for 1.60.
Closed March 9th 2800/2775 put spreads for 23.00. Sold ITM for 19.70 last Friday. #ITMroll coming
Sold March 2nd 2710/2735 call spreads for 9.20. #ReverseRoll
Closed March 9th 2725/2700 put spreads for 11.05. Sold for 4.05 on Monday. (rolled to spread above)
Sold March 23rd 2775/2800 call spreads for 5.25
Closed March 29th 2610/2585 put spreads for 3.15. Sold for 1.50 on Monday.
Closed March 16th 2695/2670 put spreads for 7.96. Sold in a #CondorRoll for 7.85 on Tuesday.
Sold March 28th 2525/2500 put spreads for 2.20, 1.5x pos size, #Rolling from Mar 29th puts closed above
Stopped: March 23rd 2530/2505 put spreads for 2.90. Sold for 1.60 on Friday. No roll yet.

Here we go again with…

Here we go again with the selling. Who can offer the lowest price?
How low do we go…. 🙂

VXX long put spreads against SVXY

Thanks to @hcgdavis for cluing me in on Mark Sebastian’s trade idea on long VXX puts and put spreads. I bought $VXX Mar 16 48/46 put spreads for 1.24 debit. Looking to close for the full 2.00 on a volatility pullback and applying the profit to SVXY stock.