Another lesson in not trading naked calls/strangles in individual names. ANDV most recently TSO is up 24 points in the last 3 days. Apparently buyout by marathon oil.
#jadelizard trades for individual names, strangles only in indexes………
I had a strangle briefly a few weeks ago as a recovery, good thing I unwound it. I will take lucky over good some days!!
MYL #FallingKnife
Just saw that I got filled on this:
Sold $MYL Oct 19 30 puts @ .76
#LongCalls #LEAPS – Filled 10 seconds before the close. No time for the triple dip but the double dip paid off. Second batch this week…
Bought to Close PYPL MAY 4 2018 75.0 Calls @ .05 (sold for .50)
#SPXcampaign Closed on GTC order: $SPX May 17th 2775/2800 call spreads for .20. Sold for 1.55 on April 20th.
#Earnings #ShortStrangles #CoveredCallCampaign
Sold $SQ 45/55 May 4th strangles for 1.00. Leans slightly bullish. I am also long the stock so some of the calls are covered.
Biggest UP move: 14.0%, Biggest DOWN move: -21.7%, Average move: 8.2%.
Stock at 48.50 at time of fill, strikes are +13.4% and -7.2% OTM.
#Earnings #ShortStrangles – A little early…stock has pulled back a little. Bought some cheapie puts at twice the expected move just in case something crazy happens. Also, this is half size in case I need to convert it to a LEAPS position eventually.
Sold SQ MAY 4 2018 48.0/55.0 Strangles @ 1.57
Bought SQ MAY 4 2018 38.0 Puts @ .04
#ShortStrangles – This thing started out in trouble almost from the beginning. Rolled calls down a couple times and ended up with a straddle. A little bounce back gets me out with good profit. Closing this to make room for SQ earnings. If that works out then I’ll get another shot at ROKU next week with their earnings.
Bought to Close ROKU MAY 4 2018 34.0 Straddles @ 1.23 (sold for 2.20)
WDC #FallingKnife
Sold a put ladder with the stock near 77.
$WDC Jun 15 72.50 puts @ 1.65
$WDC Jun 20 67.50 puts @ 1.42
$WDC Oct 19 60.00 puts @ 1.65
NUGT #ShortPuts Sold May 11th 25 Put at .50 when NUGT was at 26.13
K #FallingKnife
Earnings tomorrow but the decline in this stock has made long term put selling attractive.
Sold $K Dec 21 47.50 puts @ 1.23 with the stock at 56.64.
#PIETrades #ShortPut Sold to open FAS May 4th 63 Put @ 0.75 when FAS hit 63.37 on the pull back from the post FOMC pop.
CMI #FallingKnife
Sold Dec 21 105 puts @ 1.40 with the stock at 146.52
#SPXcampaign Sold $SPX June 1st 2760/2785 call spreads for 1.75.
Closed on GTC order: May 4th 2575/2550 put spreads for .30. Sold in a #CondorRoll for 7.15 on April 12th.
We had this discussion many months ago, I think it is worth revisiting. I have noticed significant changes in efficiency of capital depending on what the market is doing.
Obviously at the moment we have the benefit of higher volatility, that is keeping some of the options premium higher, which is nice if you are an option seller.
From a strictly margin standpoint it appears that using the futures options provides the best ROI/ROC but also has a lot of risk. With credit spreads, the benefit decreases but is still there.
The leveraged products have higher premiums but most of the brokerages account for higher margin requirements so there does not appear to be a significant advantage other than the higher credits received. However, easier to manage with the higher credits.
ETF’s especially the indexes have good margin treatment, 20% in most cases but when volatility is low the premiums are not there.
Most individual tickers are also treated well with margin, but I noticed a few names have higher requirements because of volatility. Usually the biotechs and start-ups.
Currently on the #pietrades in my core account I am trying to collect $1000 a week minimum. If I am able to do that for a year will result in a 72% return on investment using only 20% margin requirements. Obviously I cannot do that with the IRA accounts. Also cannot trade futures options in the IRA accounts.
Also because of the weekly trading I am trying to compound returns as much as possible.
Just a few thoughts, if anyone else has noticed other areas to improve efficiency let me know.
My hope is to have a portfolio margin account again within the next 6 months but I will not use it to its full capacity, will continue to limit to 20% margin use to prevent blowing out another account like I did in 2015. However the efficiency of capital improves with a portfolio margin account because of the relaxed margin requirements. I think tastytrade did a segment on this and it basically doubled returns without increasing risk.
Sold at the newest high strikes in Jul and Sep.
$GUSH Jul 20 45 calls @ 1.50
$GUSH Sep 21 45 call @ 2.74
#LongCalls #LEAPS – A little more theta and a little more pullback allowed me to get out of my XOM snoozer.
Sold to Close XOM JAN 17 2020 75.0 Calls @ 7.47
Bought to Close XOM MAY 4 2018 75.5 Calls @ 1.36
All said and done including weekly sales made a whopping .16 per contract after commissions. I’ll take it!
Now…staying in energy but moving on to something with a little more premium.
Bought ERX JAN 17 2020 36.0 Calls @ 10.49 (89 weeks needs 12 cents per week)
Sold ERX MAY 11 2018 37.5 Calls @ .50
I am in the 2020 Fuzzy at 63C,63P, 61P and short the May 4, 67 call. My maximum loss is 15.50 and I am in the trade at 13.50. After Friday, my cost basis will be down to 11.87 and I need .17 cents per week to break even from when I put the trade on. I am thinking of selling the 63 call for may 11 or May 18 on Friday afternoon. This would bring my cost basis down below $10.00 with 88 weeks to go. Any thoughts?
STO DIS May 11 105 call at 0.34. earnings on 5/8. Currently 1st strike outside expected move.
STO XBI May 11 92 call at 0.40 #syntheticstock #leaps
#Earnings tomorrow before the open. Not really an earnings play but taking advantage of the high IV to double dip. Rolling to just inside the expected move trying to force a turnaround. This particular position is really taking a long term outlook since I went synthetic at 400. Updated all of my #LEAPS and #SyntheticStock positions last night. This one is out to 2020 and still only requires 74 cents per week…
Rolled REGN MAY 4 2018 345.0 Calls to MAY 4 2018 310.0 Calls @ 3.20 credit (5.60 total credit now)
ERX #PIETrade #ShortPuts All righty. Trying again at controlling my emotions through gaining experience. I sold ERX May 4th 35 Put at .50. I will take assignment or roll if advantageous.
#Earnings Sold $TSLA May 4th 265/330 #ShortStrangles for 3.19. Biggest UP move: 11.2%, Biggest DOWN move: -8.9%, Average move: 5.7%. Strikes are +10.0% and -11.7% OTM. Leaning a bit bearish as we’re bellow 200ma and recent performance.
#PIETrade #Shortputs OIH Sold May 4th 27 Put @ .26. Will take assignment
STO June 28 puts @1.10
Options Bistro 