#pietrades, #optionladder, and #spycraft
Spent last hour looking for trades this week after finishing taxes :). Not much in the way of #pietrades for the week, everything is extended and the decrease in vol sucked out some of the juicy premiums.
The best I can find is the BIB 62-63 CC depending on how aggressive you want to be. Other option is the put side but have to stay close to the money to get any good premium.
Also looking and ANDV (the old TSO) around the 100-103 level either CC or puts, your choice they are at parity.
GM assigned over the weekend, will sell 39 CC a few weeks out. Cost basis 39.3.
LNG already set up for Friday at the 55 CC.
With that in mind, may go out 26 DTE today 25 tomorrow and set up some ladders to give some more downside protection. Bunch of tickers there, AMGN, ANDV, CVX, MAR, MON, NKE, NSC, UNP, PSX, UAL, VLO, XBI. The 20 delta puts all have good premiums on these and don’t mind taking some shares if assigned.
#spycraft on hold. Looking back the last several weeks, the expected move on SPX/ES/SPY has been exceeded 3 out of the last 5 weeks both to the up and down side. That means the options are not priced correctly, we are not making enough for the risk. Once the pricing is back in line, or the vol. is higher to reflect the movement of SPY will restart. Also going forward will manage by buying in between the strikes if it looks like the short strike will be breached. See previous discussions for the specifics.
Hope everyone had a good weekend!
Will decide what to do with some of these trades at lunch time tomorrow.
Mar 11 #Fuzzy Land + how to make $700 the easy way
Hi Bistro Buds! Last week was a bit of a roller coaster huh? On Thur, before NFP, some technical health indicators I use looked a bit weak. So I took profits on all the index #AtomicFuzzy hedges and closed 1/2 of the core positions. Little did I know what a smart move that was. Remember the Atomics have a double size hedge, so the double hedge covered all the losses on the 1/2 core, then set up the remainder cores for the big move up on Friday. I got lucky, but I try to only get lucky once, then it goes in the tool box for future intentional moves. I realized what an important trade the Atomics are for high volatility, however because they are more expensive, the profit targets need to be tighter. The double hedge in the Atomics accommodates higher volatility, but when profits appear, they need to be taken quickly since profits will appear in declining volatility–which affects the protective legs of Fuzzies.
Friday I took off almost all of the Atomics, and replaced them with regular unhedged #Fuzzies that are free to fly in a “risk on” environment. The price of April Fuzz’s has come down by over 30%. Indexes are my focus. I also took the opp, in a still-elevated vol environment, to put on some of my favorite 20DTE 25/23 delta SPX bitties.
We received our very first 1-Standard Deviation up move on Friday since the big down moves aged off. I think everything is looking rosy. I’ll be watching carefully for follow through early this week on market activity. The closed Fuzzies for the quarter has a 5-figure 35 handle now.
Oh I almost forgot….”How to Make $700 Easy”…. On Monday after hours when the market tanked on the Cohn announcement, I bought TEN TEENSY shares of AMZN. I thought it was ridiculous….how could 10 tiny shares help me in any way? Well…you know the answer to that now. This is going in the toolkit.
Good trading this week for everyone!