Shorter leashes.
Bought to close:
$UVXY Apr 20 26 calls @ .57. Sold for 1.42, 1.90 and 2.07 on 2/2.
$UVXY Jun 15 60 calls @ .32. Sold for 2.10 on 12/1 and 2.15, 2.20 and 3.85 on 2/5.
Daily Archives: Thursday, March 15, 2018
#shortstrangles FXI They are selling…
#shortstrangles FXI
They are selling strangles on FXI at Tastytrade so I followed an April 20, 51/47 for 1.28, FXI is a China large cap ETF
#coveredcalls CIEN This is a…
#coveredcalls CIEN
This is a Tradewise recommendation they are closing, the stock went way up and couldn’t roll anymore, made $377 over 6 months, 18% by their figures.
AAOI
#ShortStrangles #SyntheticStock – Still a dog and I’m still selling.
Bought to Close AAOI MAR 16 2018 30.0 Calls @ .05 (sold for .60)
Sold AAOI MAR 23 2018 29.0 Calls @ .35
GLD
#SyntheticStock – Sitting almost at breakeven so selling aggressively to try to get out at even. A little bit of a margin hog and a little too big size wise.
Bought to Close GLD MAR 16 2018 126.0 Calls @ .03
Sold GLD MAR 23 2018 125.0 Calls @ .70
Rolling some deep in the money positions
I was undecided about whether to just book the losses on these or roll them. Decided to roll and get more time and premium.
Rolled $CELG Mar 16 115 put out to Sep 21 115 put for .60 credit
Rolled $RRC Mar 16 22 puts out to Aug 17 22 puts for .15 credit
Rolled $XLK Mar 16 60 straddle out to Apr 20 and inverting the strikes to 64 puts/60 calls for .35 credit. This position has been rolled since November with the strikes moving around. Total credit taken in is now 4.04 so if XLK finishes between the strikes this trade will pretty much break even. That’s unlikely though, with the stock at 69.85. My plan: If it starts to come in, roll opportunities should be better and I can probably un-invert the strikes. If it continues to run up, I’m going to throw the towel in and take the loss.
QRVO puts
A nice long tail being printed on the daily chart. Selling puts around the 200 DMA. Delta of 23, stock at 78.02. No earnings in this expiration cycle.
Sold $QRVO Apr 72.50 puts @ 1.20.
ITM debit spreads
Might be on to something here. I have an experiment running on ERX. 22 DTE 21/26 call spread. I don’t know what the news is, but all the oil service sector names just tanked and are now bouncing. Anyway, I was looking at how hard it would be to roll and it is really easy and often done for a credit.
Adjustment #1 is roll the long out or to a leap and make it a fuzzy. I could add another 9 months for 3.2 or 19 for 7.19. Then you have plenty of time to sell against it.
Adjustment #2 roll the entire spread out a month, could do that for 0.7 credit even going down a strike.
Adjustment #3 roll the short strike down same expiration for credit. At that point you lose some of the profit but still stays green.
I may experiment with some more of these going forward and will share results. Might be a better way to get higher returns with known/controlled risk. That is always a good thing 🙂
Also may be a way to ease into a #fuzzy at a lower cost and not having to initially set up as a long range trade.
Denis Gartman
from Barron’s yesterday afternoon: Gartman: Time to Sell Stock, Hold Cash
March 14, 2018 5:16 p.m. ET
He might be right one day.
#shortputspread Sold BA Apr 295/270…
Sold BA Apr 295/270 Bull Put $2.35
Sold BA Mar29 295/270 Bull Put $1.35
#pietrade Rolled ANDV 96 put…
Rolled ANDV 96 put 14 DTE out to 29 DTE 95 put for 0.35 credit. Cost basis 94.7 now.
Part of my change in management discussed below. Add credit, move strike farther away and give it some more time for more aggressive management if needed.
DG
#SyntheticStock – Really liking the weekly premium in this thing. Setting up a synthetic out to next Jan.
Bought Jan 2019 95/95/92.5 Synthetic Stock @ 8.90
Max loss of 11.40 with 44 weeks to run so need .26 per week to cover…
So:
Sold DG MAR 23 2018 97.0 Calls @ .80
As for the earnings strangle I’m completely out now for 1.70 (sold for 1.79)
#pietrades STO the next week…
STO the next week 8 DTE FAS 68 CC at 67.20 in IRA, only 300 shares.
Tomorrow have some expirations that look safe for now.
WDC 87 CC will let call out
FAS 67 CC will let assign
That’s all for this week. Mostly need to sit on my hands and let theta do its magic.
I need to place some #fuzzy trades and #spycraft trades to improve ROI but to be honest, my trading confidence is still low after the SVXY debacle. To have an entire year’s worth of trading profits wiped out by one trade has been a major gut punch. Luckily I learned to segregate accounts after 8/24/2015 and only affected 2 out of 7 accounts. I know how to trade, fairly good at it, the SVXY was an isolated event, but still sits in the back of your head and prevents you from hitting the send button on some trades I know are good.
After I successfully manage what I currently have on and have a few cycles of profitable trades it should get some mojo back.
As I am reading “Trading options for edge” realize I probably need to manage the positions and portfolio by the Greeks more, especially delta and gamma. Learning some new hedging techniques that should be very beneficial and will post them as I use them and learn them.
#shortputs SIG SIG has recovered…
#shortputs SIG
SIG has recovered a little to 38.58, sold April 20, 35 put for .60
BABA strangle-roll
#CoveredCalls #CoveredCallCampaign #StrangleRoll
Stopped: Bought to close $BABA Apr 6th 197.5 covered call for 5.90. Sold for 1.70 on March 2nd.
StrangleRoll: Sold BABA April 20th 190/210 strangle for 7.50.
A fairly aggressive roll, but when I own the stock it boosts my confidence 🙂
AVGO earnings
#Earnings Hasn’t been a huge mover, but can surprise and also has been in the news. So I’m taking a favorable R:R trade:
Sold to Open $AVGO 255/265/275 #IronButterfly for 7.60. Max risk, 2.40. Last quarter its one day move was zero. It opened up then traded down all day to end dead flat. Let’s do that again!
exiting DG
#Earnings BTC (1) $DG March 16th 94 call for .50. Sold 84/94 #ShortStrangles for 1.60 yesterday. Scaling out of the threatened side.
TIF earnings
#Earnings Sold to Open $TIF March 16th 96.5/109 #ShortStrangles for 1.05. Biggest UP move: 10.5%, Biggest DOWN move: -8.7%, Average move: 3.9%. Mt strikes are +6.3% and -5.9% OTM. Slightly bullish lean. Other than the two biggest moves, TIF has not been a big mover on earnings.
Earnings biggies
#Earnings For your consideration, some of our favorites today:
$ADBE, $AVGO, $ULTA, $TIF
Good Morning
Good Morning
Options Bistro 