Not done with the Mark…

Not done with the Mark Sebastain book but a few things about adjustments, may need them. Unfortunately I have a few trades that will take me a while to unwind so won’t be able to do these for a while.

Butterflies, adjust once you are at the long strike. Basically buy some more and the ratio will boost returns.

Credit spreads, leave enough space between the strikes so you can buy in between. Usually a 3-4 contract buy on a 10 lot will flatten your deltas. If it then keeps moving you have a back ratio and any further movement will increase your profits. Other option is just back ratio the spread, say buy back 1 short for every 3-4 long contracts.

Naked options, the best way we have found is to turn them into a #fuzzy.

Full disclosure, I have not had time or the opportunity to do any of these real time, but they look like they will work in thinkback. Most of the time it flattens your loss but don’t expect a huge profit on an adjustment except in the case of a continued move if you ratio it.

Some people may get margin calls over the weekend, Sunday open could be interesting and I might take a directional trade then. Have to see.

Have a good weekend.

#spycraft

Options Expiration and Final Trades 3/23/18

#SPXcampaign. Cleared out most put spreads for expected lower levels Monday. I only rolled one as I’d like to sell based on Monday’s open.

Stopped $SPX Apr 19th 2540/2515 put spreads for 5.40. Sold for yesterday for 2.85.
#CondorRoll: Sold Apr 6th 2700/2725 call spreads for 3.10, and Apr 6th 2475/2450 put spreads for 2.80.

Stopped Apr 19th 2475/2450 put spreads for 3.10. Sold yesterday for 1.80.

Closed Mar 26th 2680/2705 for .30. Sold this morning for 3.10.

Stopped March 26th 2575/2550 put spreads for 6.05. Sold yesterday for 1.75.

Bought to Open March 29th 2475/2450 LONG put spreads for 2.15. Will take profits with any big gap or move down Monday.

Bought to close March 23rd 2585 puts for .35. Sold in a #Condor Roll on Monday. Thought I didn’t need to worry about this one.

#VXXGame: Sold $UVXY Jan 2019 65 call for 3.75… thanks @optioniceman and @ramie77 for the idea

#Earnings BTC $FDX Mar 23rd 240 puts for 6.50. Sold in a strangle for 1.75 on Tuesday. Missed my chance to close for cheap on Wednesday. #Rolling: Sold Apr 20th 235 puts for 6.75. Also sold a Apr 20th 255 call for 1.15. Will add more calls on strength.

#OptionsExpiration
$SPX 2790/2815 call spreads
$VRTX (formerly covered) 177.5 call

Still about 40 points from…

Still about 40 points from the Feb lows but they ripped /ES down into the close. However, momentum shifted on the 15 minute on the last candle. I am not the directional guy so who knows what it means for futures open Sunday night 🙂

#spx Close below 200 MA…

#spx

Close below 200 MA is not a good sign.

#UVXY Probably should have waited…

#UVXY
Probably should have waited for Monday
STO UVXY Jan18’19 75 CALL 2.90

KHC

New low on this dividend stock.

#short put Taking a chance…

#short put
Taking a chance on UVXY Sell to open March 23 $19,50 put for 0.15. I expect to get assigned at net cost 19.35 when asking price was 19.75