#pietrades..
Assigned ERX last Friday 5/25 with CB of $41.95…
5/29 STO 6/1 38 call at $0.35 with ERX at 36.36. CB now $41.60.
5/31 rolled 6/1 38 call out to 6/8 38 call for $0.65 credit with ERX at 38.51. CB now $40.95.
Monthly Archives: May 2018
Is there any way in…
Is there any way in TOS to scan for price changes on stocks during after hours?
Is there such function in Interactive Brokers platform?
Hello Everyone, I have a…
Hello Everyone,
I have a general question about putting together an equity portfolio. After speaking with several investment advisors, I realized that all of them have a very limited understanding of using options as investment strategy. They understand ETF’s and stocks, but that’s about it.
This portfolio is separate from the rest of the investments, so allocation for bonds, etc.. is not an issue.
Most portfolio ideas are around proper allocation between stocks, using high quality companies and dividend payers. Well, many dividend aristocrats have a nasty looking charts, like PG and JNJ. Also, the market is at the high level at this point for many stocks.
If you would be starting a new portfolio, what would you do?
Assumptions:
- Value 100K (to make it simple)
- Time horizon 10+ years
- Preferably low maintenance portfolio, because of limited time for monitoring.
- Would you use ETF’s, stocks (growth or dividends), options or a mix of everything?
- I am thinking of PIEtrades as a starting point.
- How would you allocate the funds?
All opinions are welcome.
TSLA
#LongPuts #LongCalls #LongLEAPStraddles – Like Sue, I’m playing this from both sides as well. Late fill here while I was out riding the motorcycle during the close. Great day here in STL!
Bought to Close TSLA JUN 1 2018 292.5 Calls @ .25 (sold for 9.15)
I’ll be looking tomorrow to reset this and address my 292.5 short puts. A nice big morning gap up would help but I have my doubts….now that Teslas are starting up by themselves and then taking off and crashing into stuff. I hate to laugh but it’s almost getting comical. Can’t wait to see what Grasso has to say. He’s been buying the dip since 310 I think.
http://fortune.com/2018/05/31/tesla-brussels-autopilot-crash/
SPX puts closed
#SPXcampaign Don’t want to leave this risk out there with VIX moving higher.
Closed $SPX June 1st 2675/2650 put spreads for .70. Sold for 4.40 on May 10th as a #ReverseRoll.
AAOI up 15% today
Strong into the weakness. Trading at the high of the day 46.72. Up 40% in the last 6 trading days.
#shortputs TRTN TRTN down 1.00…
#shortputs TRTN
TRTN down 1.00 on light volume, it is ex-div today
AMBA
#LongCalls #LEAPS – Interesting characteristic I’ve noticed about these risk analysis charts….this one is AMBA where I’m evaluating my options for next week (earnings).
If you change the strike price on the next sale the entire curve moves vertically up and and down with no change in the curve itself. The big factor for changing the chart is the number of weeklies sold. TOS is great for setting this up and then manipulating the numbers on the potential trades and seeing the exact effect.
These 3 charts are selling 3, 4, or 5, against a 5 lot with no change in strike price…
#earnings (not really) #shortputspread LULU…
#earnings (not really) #shortputspread LULU
Trying something, Sold Sept. 80/90 put spread for 1.69. If it goes up as it has been, I’ll take a quick .50 or so, similar to the June 15 80/90.
FB call roll
#CoveredCallCampaign Closed $FB June 8th 190 call for 3.60. Sold for 2.75 on May 10th.
Sold June 29th 185 put for 2.00. Will sell a call at new highs.
COST earning
#Earnings Sold to Open $COST June 1st 195 puts for 1.55. Biggest UP move: 3.6%, Biggest DOWN move: -6.0%, Average move: 2.8%. This trade is -1.8% OTM. This is a bullish trade. I’ll probably convert to a long position if my puts go ITM.
Earnings ULTA and COST
#Earnings Bullish or neutral on ULTA, bullish on COST.
Trying the $ULTA June 1st 230/270 strangle for 3.00-3.40. No fill yet, backing in. Biggest UP move: 17.3%, Biggest DOWN move: -9.1%, Average move: 6.6%. Bias +2.55% Strikes are +/-8.0%
Rolling DISH
With no time value left, I rolled $DISH Jun 15 37.50 puts out to Jul 20 for .05 credit.
Closing $K
Bought to close $K Dec 21 47.50 puts @ .40. Sold for 1.23 on 5/2. Over 65% of the profit in less than a month. Didn’t want to wait another 6 months for the last .40.
#shortputs #rolling #pietrades GM January…
#shortputs #rolling #pietrades GM
January 26, sold a 42.50 put for .44, rolled it 6 times, the most recent on April 4, a 43 put for 5.81. I closed it today for 1.94, making .49 after all of the rolling, whew. GM is up 10% today, not tempting fate by staying in. Thanks MikeL for pointing out the pop.
FB flying
Breaking out to all time highs. Long stock, plus 190 covered call I will be rolling. Also,
Closed on GTC order: $FB June 8th 180 put for .25. Sold for 2.40 on May 10th.
Yesterday, closed on GTC order: $AAPL June 8th 195 covered call for .20. Sold for 1.75 on May 7th.
Leaping
#LEAPs #SyntheticCoveredCall
I’ve been watching @fuzzballl‘s LEAP plays and thought I’d use a couple of Jan 2019 call positions for the strategy. I’ve already been doing this with $TQQQ long 50 calls. (Jan 2020).
In November and this month, I bought two $PYPL Jan 2019 100 calls for 2.66 average price. These are at a small loss now. I need only .08 per week, so I will be selling 2-4 weeks out.
Today, sold PYPL June 15th 83 call for 1.25. I only sold one for now, will likely do these piecemeal rather than all at once. If I start to acquire a lot of these plays, I may prefer all at once.
In Nov, Dec, and Jan, I bought 4 $SQ Jan 2019 60 calls, 3.52 avg price. These are now more than doubled.
I’ll be selling weeklys against this; orders in to catch the next pop. I need only .11 per week.
I bought these OTM so it’s much easier to cover the cost than the TQQQ ITM call purchase.
#shortputs KORS down 4% MU…
#shortputs
KORS down 4%
MU down 5%
WHR down 2.5%
SPX puts sold
#SPXcampaign Sold $SPX June 29th 2575/2550 put spreads for 1.70.
#shortputs GM is up nicely….
#shortputs
GM is up nicely. Finally I can get out from the short 38 puts
FB
#LongPuts #LongCalls #LongLEAPStraddles – Playing both sides here. Been rolling up the puts aggressively the whole way. This last little roll will already completely cover the cost of the long puts leaving 32 more weeks to sell. A pullback (after next week) would be nice…
Rolled FB JUN 8 2018 185.0 Puts to JUN 8 2018 187.5 Puts @ .55 credit (3.95 total now)
The calls have obviously gotten run over. I may roll the long LEAP calls up and use the credit to roll up the weeklies that are ITM. This would still preserve the big gains on the long calls while getting the short calls into a more rollable position.
DG Earnings
Two different positions:
#LongCalls #LEAPS – Booked the original weekly sales and threw on an additional sale hoping for a quick double dip…
Bought to Close DG JUN 1 2018 101.0 Calls @ .02 (sold for .65)
Sold DG JUN 1 2018 92.0 Calls @ .35
#JadeLizard – Original sale was 95/104/106 Jade Lizards @ 2.13.
Closed the call side for .02. Did that mainly for risk reduction when I sold the additional calls above. Still sitting on the short 95 puts with a basis of 92.89. Will probably roll them and then sell additional calls in my LEAPS position above.
#shortputs TGT bought June 15,…
#shortputs TGT
bought June 15, 67.50 put for .12, sold for .52 on May 23.
LABU
#LongCalls #LEAPS – Nice pop again today and now reaching negative deltas for the second time already even after yesterday’s roll. That’s my signal to book and wait for a pullback.
Sold to Close LABU JAN 17 2020 84.87 Call
Bought to Close LABU JUN 8 2018 92.5 Call
Quick little 10 day trade booking 3.42 per contract. Wish all experiments went like this! Only one contract but I’d say LABU is definitely staying in the watchlist.
EWW
#LongCalls #LEAPS #UnbalancedDiagonal – Book it. Still selling in a quantity that practically eliminates upside risk just in case…
Bought to Close EWW JUN 1 2018 46.0 Calls @ .03 (sold for .50)
Sold EWW JUN 15 2018 45.5 Calls @ .49
May 31 #UnbalancedDiagonal LMT This…
May 31 #UnbalancedDiagonal LMT
This seems like an appropriate name for the trade developments from last night? The Unbalanced Diagonal replaces the back ratio with a time ratio. It should accomplish the same or better (significantly better on a directional trend) outcome with slightly less risk. I absolutely love the collaboration last night on this!! Thanks @fuzzballl for your discovery weeks ago of the time ratio!
Sue
Here’s my first trade:
LMT 1. Bought 5 Sep 310 calls @19.00 2. Sold 3 Jun8 320 calls @ 2.57
Max Risk: $8729, Weekly return on risk: 8%
MU #LongCalls Closed my June…
MU #LongCalls Closed my June 50 Call @ 9.08 when stock was at 58.90. Originally bought @ 4.85.
Decent day for earnings
Perennial favorites: GME, LULU, WDAY, ULTA, COST, VMW
Good Morning
Good Morning
OLED bump again?
Apple is reportedly planning on using OLED screens on new iPhones going forward. Consumers could see a good deal of benefits, according to @robotodd. https://t.co/2UwiadLGJS
— CNBC (@CNBC) May 31, 2018
Futures in your future?
…tastytrade Motion In The Markets report.
https://tinyurl.com/y8psrmz3
GM
LABU Rolling Again / AMZN Sold Early / NVDA Short Puts
#rolling
$LABU BTC 6/1 88.5 call and STO 6/15 89 call at 2.60 added credit.
#shortputs
$NVDA STO 7/20 225/235 BUPS at 2.00 Dr SCience at OMM
#shortputs
Sold Early
$AMZN BTC 6/15 1460/1480 BUPS at 1.00 STO at 8.40 Have one more of these trades at lower credit still open
Taking off a position in AZO
Bought to close $AZO Jul 20 590 put @ 3.70. Sold for 9.80 on 5/22. This is a margin hog so I’m being aggressive in taking them off when they’re more than 50% profitable. I’m also still short a Dec 500 put from 11.60 that I’ll look to close hopefully pretty soon.
DG Earnings
#Earnings before the open tomorrow. I’ve got long LEAPS against 101 strike weeklies. Position makes money up to the expected move then tails off a little after that. Looking for something else to go with it for low risk. Premium isn’t to shabby.
AAOI nice pop
Up 10% on more than double average volume.
Classic whipsaw
All things considered, I handled it as best as I can expect, in that I protected myself by closing some bullish spreads, but didn’t panic close positions, leaving a couple ATM/ITM put spreads in place. Now I’m stuck with some underwater call spreads but won’t panic close them… tough part is we are officially under Downside Warning again, which means we could easily collapse in the coming weeks. Below is a chart showing the warnings on the SPX chart… after the 2nd warning, we still had some wild swings. But since then we’ve been squeezing into a tight range. Anyone’s guess, but this third warning could be a head-fake.
hump day
Usually don’t trade Wed. but apparently my wife signed me up to be a chaperone on a school trip tomorrow so taking advantage of the snap back and rolling a bunch of #pietrades
LABU various accounts roll 84 put to next week 85 for credits of 1.35, 1.38, and 1.30.
AMAT rolled the 51 CC to next week for 0.42 credit. This is the one that dropped after earnings. Cost basis now 52.69 and should be able to scratch in in 3-6 more weeks. For those following stick with it, will make some $ on it in a few more rolls.
The second batch rolled 50.5 cc out a week for 0.37 credit. This one is already ITM with a cost basis of 49.56. My plan is to keep rolling as long as I can bring in more than 0.2 per week. Once it drops below will let it assign and then go back to put sales until assigned and do it over and over, true #pietrade style. This one works unlike GM because you can get about 1% per week out of the options. I traget 0.5% or higher every week for the #pietrades.
SOXL 125/130 vertical debit sitting on hands for 2 more weeks. Bought for 4.65 and should close for 5 credit.
GM 37.5 CC closes next Friday. Cost basis 37.72 and I will gladly take the .24 loss just to get out. Rolling to next week only gives 0.09, hardly worth the effort so once this closes it is off the #pietrade list unless the premiums increase dramatically.
All told picked up $1976 cash for next week including commissions so even rolling a few days early does not hurt 🙂
Hope everyone is having a good week, won’t be able to check in until Friday afternoon but at this point sitting on my hands for another week.
ERX Bought to closed my…
ERX Bought to closed my June 01st short call @ 1.20 when ERX hit 39.02. That was a fast recovery.
May 30 Extrinsic is my world today
What a day! I have a boatload of premium sold against synthetic stock that expires this week. My whole world right now is scrolling through extrinsic values to catch the right time for rolls or closures.
TSLA: I’ve got a double-sided position here hedged with both puts and calls, rolled both today from June 1 to June 8 collecting $699 on the roll. June 8 275 put/300 call (that 300 might be tight!!).
SHAK: I did a small CoveredBackRatio on this due to it being at all time highs….high begets higher though. I did a debit roll for .28 to capture an additional 1.50 upside. I’ll usually only debit roll once on these. SHAK has already blown the new strike, so I’m watching extrinsic value for the exit point.
TQQQ (pre split): Ditto on above. .29 debit for 1.67 add’l upside.
AMZN: Trying to get a full position exit on this for around $1450 profit. There’s still about $3.00 of extrinsic in my DITM short calls. No rush, but need to keep an eagle eye on it. Update: filled for $1443 profit in one week. Flat AMZN now but will look for a reset.
A few other things with hedges ITM, but enough extrinsic still to wait a bit: CRM, ADBE, RHT, GRUB, TWTR, NVDA.
LABU
#LongCalls #LEAPS – Just a one lot experiment since it’s my first time in this ticker. Reaching negative deltas today so rolling out and up a week. I’ll look to close if it gets to negative deltas a second time. I’d book it for a quick 3 or 4 bucks if possible and wait for another pullback to go a little bigger next time.
Rolled LABU JUN 1 2018 90.0 Call to JUN 8 2018 92.5 Calls @ .15 credit
FAS
#LongCalls #LEAPS – It’s days like today where I’m becoming a believer in only selling enough weeklies to rapidly cover the cost of the LEAPS while eliminating upside risk (or most of it). As these weeklies get reset I’m trying to get all my positions setup like this.
Bought to Close FAS JUN 1 2018 67.5 Calls @ .09 (sold for 1.02 full position)
Sold FAS JUN 8 2018 66.0 Calls @ .96 (70 percent)
This position is a 10 lot out to 2020 requiring .42 per week ($420.00). Selling 7 for .96 more than covers that while giving this risk:
SPX calls sold
#SPXcampaign Sold $SPX June 8th 2750/2775 for 3.25, as a #ReverseRoll
Sold $SPX June 29th 2800/2825 call spreads for 1.80.
Morning
#coveredcalls
DBX Covered my long stock with June 8th 31 calls for .40 when the stock was at 30.17
#shortputs
TWTR Sold June 1st 34 Puts for .36 when TWTR was at 34.18. TWTR has a relatively nice level of premium in the weeklies. It has been in a flat to slight up trend. Year ago earnings were in late July so it might make a good income trade.
I solved my confusement over my MU position. Just one of those maroon days I guess.
SPX roll sold
#SPXcampaign Sold $SPX June 22nd 2610/2585 put spreads for 2.30, with 1.33x-position size. Not much lower on the strikes than the spread this replaces, but it’ll do.
Rolling CPB
$CPB Jun 15 37 puts out to Jul 20 37 puts for .45 credit
Good Morning
Good Morning
UVXY calls
#VXXGame Yesterday, Sold $UVXY July 20th 20 calls for 1.20.
SPX trades
#SPXcampaign These two also got stopped yesterday, orders filling on the end of the day bounce. The May 31st one kinda sucked, since it is much cheaper this morning, but it was too close to expiration to risk a further drop. I am mapping out rolls for everything today… some in calls, some in puts, some in condors.
Stopped: $SPX May 31st 2675/2650 put spreads for 6.50. Sold in a #CondorRoll for 6.70.
Stopped: $SPX Jun 14th 2610/2585 put spreads for 2.90. Sold for 1.65 on May 14th.
AMZN Long Calls / SPX Campaign / SQ Rolling
#longcalls
$AMZN BTO 7/20 1600/1630 BUCS at 16.35
#spxcampaign
$SPX STO 6/8 2625/2650 BUPS at 2.80
$SPX STO 6/22 2800/2775 BUPS at 2.50
$SPX STO 6/22 2595/2620 BUPS at 2.60
$SPX STO 6/15 2675/2700 BUPS at 7.60
$SPX STO 6/22 2550/2575 BUPS at 1.35 Thank you @jeffcp66 for all.
#rolling
$SQ BTC 6/15 50 put and STO 6/15 55 put for .98 added credit
Afternoon all Playing a bit…
Afternoon all Playing a bit of catch up here
on Wednesday#spxcampaign
Last week I mucked up my SPX spread as I was needing to be away and closed the short June 15th 2800 call on the upswing. Originally sold for 2.30 and closed at 2.95. Oops. I resold the position today @ 1.15.
#coveredcall
I was assigned FAS at 68 last Friday and sold June 1st 66 Calls against today for 0.42.
#LEAPS
Covered my long Jan 2020 36 Call with June 1st 38.50 for .20.
#longcalls
I tried to do an early assignment of my measly 1 MU June 15th 50 long call as I wanted to sell most of the stock this morning but keep a few shares for a longer term position. The gods of ToS wouldn’t let me as it was not deemed economically the best thing to do. They suggested I sell the call and buy the stock. I wish their gods would intervene when I place a bad trade. Life would be so much better. Maybe they are right but I was under the impression I could think for myself and do my own trading. So I will wait for assignment and sell most of the stock before earnings. Hopefully it will still be profitable.
Catch everyone tomorrow.
May 29 Trades
Just two little trades today:
1. GRUB calls on #Fuzzy Leap decayed to .12 so rolled to Jun 15 106. Pocketed $800 in the roll, which is 5.1% of risk (Return on Risk) in 12 days.
2. TWTR #CoveredBackRatio Sep 30/33 12×8 @8.94 (Total risk = $8.94×400=$3,576). Sold June 8 34 calls @ .73, short call = 8.2% RoR. TWTR position is equal to $32.86 stock price, current price is $34.10.
SPY SHY TLT and the Golden Butterfly
#401k #LongStock – I tried following a long term plan (The Golden Butterfly) that would probably work but I’ve decided I can do just as well or better selling puts on imploding stocks so I’m dumping these sizable positions while they’re green. Unloaded SPY back on May 18th and now unloading the bond positions on this rally. Freeing up a ton of buying power…
Sold SHY stock @ 83.60 (bought for 83.51)…decent gain since it was a lot of shares…
Sold TLT stock @ 122.12 (bought for 120.74)
ERX
#ShortPuts #IRA – Starter position…
Sold ERX JAN 18 2019 25.0 Puts @ 2.02
New downside warning
#VIXIndicator… for perspective, when this happened on Feb 28th (another warning firing a few days after the previous one had been canceled), the SPX closed at 2713. We hit the low of 2553 on April 2nd, so a full month later. During that month, we also reached a high of 2801.
SPX
it seems -40/-50 becoming a norm. Now it is this: US announces timeline for 25% tariff on Chinese tech products
SPX trades
#SPXcampaign STOPPED: $SPX June 22nd 2620/2595 put spreads for 4.10. Sold for 1.70 on Thursday.
Closed on GTC order: SPX June 14th 2810/2835 call spreads for .20. Sold for 1.80 on May 15th.
I will probably be stopping a couple more put spreads before the close, especially if no rally develops soon.
SPX calls closed
#SPXcampaign. Closed on GTC order: $SPX June 1st 2750/2775 call spreads for .40. Sold in a #CondorRoll for 8.00 on May 15th.
Dump
Looks like I picked the wrong hour to be away from my desk!
UVXY
#BearCallSpreads – Sold UVXY JAN 18 2019 12.0/17.0 Bear Call Spreads @ 1.15
VIX is up nicely :)…
VIX is up nicely 🙂 that will be good for rolling and expiration on Thurs./Fri.
EWZ
#LongCalls #LEAPS – Second batch closed this expiration. Selling 70 percent of next batch for no upside risk if this thing rebounds…
Bought to Close EWZ JUN 1 2018 38.0 Calls @ .04 (sold for .32)
Sold EWZ JUN 15 2018 37.0 Calls @ .50
EWZ
#ShortPuts #IRA – I’d take a shot down there…
Sold EWZ DEC 21 2018 30.0 Puts @ 1.69
OLED
#LongCalls #LEAPS – Small debit roll picking up 3.40 of upside…
Rolled OLED JUN 1 2018 99.5 Calls to OLED JUN 29 2018 103.0 Calls @ .10 debit
UVXY
#BearCallSpreads – In two different accounts…
Sold UVXY DEC 21 2018 20.0/30.0 Bear Call Spreads @ .86 and .85
EWZ
BTO Jun 15 36.5/38.5 Calls .75 2x
NFLX
STO Jun 1 342.5/340.0 BuPS .28 #Bitty
WYNN
STO Jun 15 200/202.50 BeCS .59 #Bitty
AMAT covered call
#PieTrades #CoveredCalls Sold $AMAT June 1st 52 covered call for .75.
SQ covered call
#CoveredCalls #CoveredCallCampaign
Sold $SQ June 29th 61.5 covered call for 1.60
OLED, boom!
iPhone may use their screens… https://seekingalpha.com/news/3359877-universal-display-plus-12_4-percent-iphone-oled-report
Italy this time
#VIXIndicator In pre-market we have a signal on the VIXIndicator which indicates to be wary of new downside risk, this time due to Italy’s political crisis causing a big drop in the Euro. Whether we get a new Downside Warning will depend on the VIX closing price.
Good Morning
Good Morning
Econ Calendar for week of 5/28/18
May jobs report is Friday at 8:30am ET.
Be sure to periodically click “Home/REFRESH” to keep Bistro features updated.
Even on “market days off”…
Even on “market days off” my routine is the same, by 4:45 AM I’m viewing the screen for the first look of the coming financial day. Hmm…it didn’t happen this morning, I returned to bed, when I did return to the computer my mind began to wander, routine interrupted, maybe a good thing? As I know you will all want to get back in the driver’s seat early tomorrow, unless you are flying around somewhere, here is a little sidebar for traders trading.
Enjoy the day and God Bless our service men and women. See you tomorrow.
Latticework of Mental Models: Hot Hand Fallacy
https://www.safalniveshak.com/latticework-of-mental-models-hot-hand-fallacy/
May 27 TWTR idea #coveredbackratio…
May 27 TWTR idea #coveredbackratio
I goofed on that last message that went out, I had a lock on pricing and needed to change the % below:
Found a good trade here on TWTR, the return on risk is annualized at over 210% (selling 14DTE calls) vs holding shares (CC) @ 57%. Evaluating these trades based on ROR makes them compelling.
1. Sep Backratio: +12 30 calls/ -8 33 calls, @9.15, for 400 equivalent shares, max risk = $3660 vs $13,452 holding 400 shares. The BackRatio deltas are 391 on a 400-share stock replacement.
2. Then sell 14DTE calls, the June 8 34 call @ .74 (x4). $296/$3660= 8% per every other week, *26 weeks = 210% return.
TWTR just joined IBD big cap 20
Options Bistro 