#VIXIndicator Official close for the VIX (and LOD) was 12.65… .04 shy of canceling the warning. Not an exact science, so things looking strong for next week.
Daily Archives: Friday, May 11, 2018
Expirations
#optionsexpiration
$FB 130/140 BUPS
$SPX 2475/2500 BUPS Thank you @jeffcp66
Happy Mother’s Day to all the Mom’s out there.
Have a restful loving weekend.
Afternoon all. Popping in here…
Afternoon all. Popping in here after the close. We just might get a functional bathroom today as the remodeling nears the end. Can you say relief! Its not that bad as we have a second but it has been disruptive.
Have a great weekend all. Summer has blasted into NC with a 90F day. Oh joy.
#OptionExpiration May 11th
Expired
MU 53 Call
NUGT 26 Put
FAS 63 Put
Assigned
FAS 66 Call
SQ 51 Call
AAPL
BTO Jun 8 187.5/185.00 Puts 1.03 #LongPutSpread
Looking for a pull back to exit
Have a great weekend y’all
https://www.youtube.com/watch?v=EM-8b6LgnMk
Happy Mother’s Day
AMZN
STO May 18 1565/1562.50 BuPS .34 #Bitty
Chipping away at SVXY
I have a ton of this, as many of us do. I abandoned the covered call strategy when Proshares cut its wings off and brought it down to -.5 from -1.0. Since then I’ve been selling UVXY calls (well mostly call spreads) and buying VXX put spreads to apply against all these positions. My first lot is coming off today as the basis for these was brought down to 11.74. Sold some SVXY @ 13.2438.
I have a long long long way to go but I want to get maybe 20-30% of these shares off the books before the end of the year. We’ll see.
SYMC
There’s a #FallingKnife …
VIX plunging
VIX plunging
Rolling
#SyntheticStock – Walking some short calls up that got run over this week:
Roll SLB May11’18 70 calls to SLB May18’18 70.5 calls for 0.05 credit.
Roll MU May11’18 50 calls to MU May25’18 52 calls for 0.20 credit.
Roll JPM May11’18 110 calls to May 25’18 111 calls for 0.41 debit. Giving up some of the premium I’ve collected on this one.
Strategies on Bistro
Hello all… I just updated the “Hashtag Strategies” Menu item (top-center of this page). I’d like your feedback on anything that should be added. I’m working on one sheet explanations of each strategy, so members will have an overview explanation and not just a link to old posts.
Let me know what you think!
SPX puts sold
#SPXcampaign Sold $SPX June 8th 2600/2575 puts sold for 1.60.
#OptionsExpiration Here’s an early expiration…
#OptionsExpiration
Here’s an early expiration report. I’ve been thinking about @hcgdavis Chris’s #PieTrades ever since his first post. I never really got serious about them, despite being intrigued. I finally decided in the last few weeks that I absolutely needed to build a portfolio strategy and not just a trading strategy. What better way than his? Of course I probably don’t follow the rules straight down the line, but here’s a report for some Pie-like trades this week:
1. AMZN: On Wednesday when the stock was at 1600, I purchased 100 shares and sold ATM calls for $11.35. Assuming AMZN closes above 1600 today shares will be called away for total profit of $1071 in 3 days. I will sell an ATM put for next Friday at the close today. AMZN is inching down and might be shooting for a 1600 pin….it would be fun if the shares aren’t called and I can roll calls into next week.
2. CVX: Nice dividend next week, so I sold ITM puts last night for assignment. I sold $129 strike for .76, closed them this morning for 87% profit. With next week being div week, I will sell puts before Ex-Div to be virtually paid the dividend immediately.
3. IBM: I did the same div play mentioned above for CVX this week for IBM, sold the put priced with added div premium, could have taken 100% profit, but closed it yesterday for 80% profit. I already have 100 shares with calls sold for next week. The income stream on IBM from #Pie has completely covered the post-earnings decline in underlying.
4. NFLX: This will be my first assignment in a long time. Earlier this week I sold 1 $330 put for $3.10. It’s dancing in and out of profit today, but I’d like to take the shares and sell a juicy call for next week.
5. NVDA: I sold ITM puts at the open this morning and later covered them for 83% profit. I sold 257.5pfor next week @ 4.34.
6. SPY: I sold ITM (272) puts last night for either a scalp or assignment today. They were covered at 50% profit.
7. CRM: I sold ITM puts yesterday ($131) for assignment, I will seek 70% profit on those today or assignment.
8. MA: I sold several puts on MA this week and took 70% profit, but I’ve got 190 (@.94) and 192.5 (@1.60) lined up for next Friday.
9. I’ve got 1×2 spreads on for next week on BABA and LMT. In a choppier market I like the idea of 1×2’s for a wider downside range. But in an uptrend, straight naked puts are better for higher premium collection.
It’s just in my blood to cover these puts at a 70%+ profit level vs. taking the shares, even when I know it may be more lucrative to get the shares and sell the call side. I’m progressing! BTW I’ve started using IBD scores to find my #Pie candidates. Of all the stocks listed above probably IBM, CVX, LMT are the weakest in regards to IBD scoring.
QQQ
FB
BTC June 140 puts @ .05, sold at 2.00 and that is the last of the puts that I sold on the spike down.
Everything looks overcooked at the…
Everything looks overcooked at the moment except the biotechs and some of the chips. You guys were busy yesterday, I was at the beach. Last week we need wetsuits, water warming up quickly!
#pietrades, #optionsexpiration, and assigned early
Expiring today or assigned early:
TNA 69 cc cost basis 64.87 and was assigned early so get to redeploy that capital early-thanks mr market
FAS 61 CC at 56.36 cb
FAS 61 CC at 59.31 cb and will reload this account Monday
FAS 61 cc at 53.91 cb and will reload something on Monday
FAS 63 CC at 60.53 cb and 100 shares at 63.14 so a minor loss but overall this account was profitable and will reload on Monday.
XME 35 CC at cb of 34.44 and will reload Monday. This is a tiny account now from the SVXY losses.
#pietrade rolls:
AMAT 49 put rolled up to 52.5 put for 0.53 credit. Total credit now 1.7 and if assigned cost basis 50.8
#pietrade new position starter
IBB 104.5 put at 1.15 credit so 103.35 cb if assigned and would take it there
malingerers
GM 38 CC at cost basis of 38.04 expires in 14 days. I will gladly get rid of it at a 0.04 loss just so I can use the $ somewhere else. This is week 17 of this trade, just stuck and this one sucks for #pietrades, it is off the list until the premiums double. Anyone else trading this one with me it is getting taken out of the rotation.
Additional trading thoughts now that I finally have all the SVXY cleared out from the Feb 6 losses and can finally use all 6 trading accounts again.
1. Capital preservation is key. Now that I have had 3 account blowing out losses, at age 45 and 47 realize I cannot afford to lose my capital base again, it is the only way I can replace my income.
2. Keeping segregated accounts that trade different tickers is ideal. This time SVXY only took out 2 accounts and small portions of 2 others. Had I not been diversified it would have been ugly and I would be working 7 days a week in the office and urgent care or ER just to try to make some back. Spread out the trading vehicles and even accounts, may save your bacon someday.
3. Trading for income is a great way to trade. Trading for extreme income and weekly is even better. Most of my losing trades can be converted to winners or break even by always bring in cash. Cash up front is easier to manage than trying to convert a losing directional trade.
4. #pietrades will make up the majority of my trades with some #supercharger s thrown in for the small accounts
5. Even with income trading you can target 50-100% annualized returns if you do it right. Guess we can call it extreme income trading!
6. Trading with the group has really helped my consistency. Thanks Bistro’ers 🙂 🙂
Hope everyone has a good expiration and Happy Mother’s Day!
Will have some trades ready for Monday morning.
One last announcement, we are still working out the details but I have had such good results with the #pietrades that I have been asked to become a contributor to the Options Income Blueprint service. Will keep you posted. It is mostly as a live and ongoing case study. I will not actually be sending out the recommendations, just how I am managing them live.
XOM
Finally STC #Fuzzy put on 2-16 then down turn hit and been adjusting ever since, out today for a very small profit. Was under water from get go and today got me even.
NOC
#LongCalls #LEAPS -Since it’s in an #IRA I’m paying the dime to get the next sale going. Getting the weekend and stock looks a little weak since Rocket Man is now a fine upstanding citizen.
Bought to Close NOC MAY 11 2018 330.0 Calls @ .10 (sold for 2.70)
Sold NOC MAY 18 2018 330.0 Calls @ 2.30
SPX
Trying something from Theo Video
BTO SPX May 18 2765/2770 Calls .80 & May 18 2695/2690 Puts .85
Both at Expected move for next week.
Does anyone know symbol for…
Does anyone know symbol for SP-500 in TradeStation?
ADSK
#ShortStrangles #LongCalls #LEAPS – Rolling out to earnings week. This is a small position so after earnings if it keeps going up I may try the old method I used with my AMZN position. I’ll be rolling the core (in this case the LEAPS) up to finance the weekly call roll. Worked for AMZN synthetic and I think it can be even more effective with just plain old long calls since there’s no downside short puts to be concerned with…
Rolled ADSK MAY 11 2018 128.0 Calls to MAY 25 2018 131.0 Calls @ .06 debit
AAOI
#TiredofIt – Still rolling and selling this one. Won’t bore everyone with the details. Will have it out to end of year and then see where it stands.
UPS
TSLA
#BearPutSpreads #LEAPS – Still selling against 300/200 Bear Put Spreads. Sold aggressively through earnings and continuing that until it decides where it wants to go. Finally out of these after accumulating premium through a few rolls…
Bought to Close TSLA MAY 11 2018 295.0 Puts @ .10 (sold for 13.15)
Sold TSLA MAY 18 2018 297.5 Puts @ 4.00
REGN
#SyntheticStock – I guess the Donald isn’t going to punish drug companies as much as everyone was thinking. Unfortunately I might be fighting the recovery in this one. Rolling weekly calls up and out for now similar to a trailing stop. Great premium all the way down at least!
Rolled REGN MAY 11 2018 290.0 Calls to JUN 15 2018 300.0 Calls @ .40 credit
NVDA
#LongCalls #LEAPS – I hate doing it up at these levels but the premium is great. Staying small here and going slightly out of the money. Might book it on a bounce if we get one. Otherwise….sell weeklies aggressively.
Bought NVDA JAN 17 2020 260.0 Calls @ 51.90
88 weeks to run so need 59 cents per week to cover cost…
So:
Sold NVDA MAY 18 2018 260.0 Calls @ 3.57
SPX calls stopped
#SPXcampaign Stopped $SPX June 1st 2775/2800 for 4.50. Sold in a #CondorRoll for 4.90 on Wednesday.
Other than the June 8th calls I sold this morning, all my previous call spreads have hit their stop levels and are closed. I have reverse-rolled some, but need to do more. I’d prefer the VIX to be lower before going to heavy to the long side.
ROKU
#LongCalls #LEAPS – After finally having time to sit down and update all my positions I’m switching into a longer term trade on this. LEAPS are reasonably priced given the weekly premium available. I closed the puts at a loss that I sold yesterday (1.00 loss). The LEAP position will be twice the size so will roll a 50 cent loss into that cost.
This is also in a different account from my SMH position to avoid some overlap.
Bought ROKU JAN 17 2020 35.0 Calls @ 10.50 (basis will be 11.00 with loss addition)
88 weeks to run so need 12.5 cents per week to cover cost…
So:
Sold ROKU MAY 18 2018 35.5 Calls @ .75
SPX calls sold
#SPXcampaign Sold $SPX June 8th 2820/2845 call spreads for 1.65.
NVDA Earnings
#Earnings – A clean sweep for the week. Wish all earnings seasons were like this!
Bought to Close NVDA MAY 11 2018 242.5 Puts and 272.5/275 Bear Call Spreads (Jade Lizard) @ .27 (sold for 2.55)
NVDA earnings closed
#Earnings Closing $NVDA mainly to get back some buying power but also to avoid surprises. Closed the 242.5 short puts for .15 and the 272.5 short calls for .04. I’ll leave the lottery-ticket long legs.
Sold condors yesterday for 1.65
Gushing
#ContangoETF’s New highest strikes added to $GUSH… 57 across all expiries.
Good Morning
Good Morning
Options Bistro 