Not a ton of activity today, I have on enough ITM naked puts that I need to see what shakes out this week before taking on anymore risk.
LMT: I’m still stalking a share assignment for dividend (2.00 div on 5/31) (you guessed it…for Daddy! The “D-word” makes his old eyes light up). Turns out I’ve made way more than the dividend by stalking the dividend, which is as it should be. I’ve done 3 rounds of ratio spreads now, all closed for 70-80%. After closing a 3×5 spread for this week, I put on a #BigLizard #JadeLizard . A Big Lizard is a Jade Lizard using the same strike short put/calls (straddle) plus the protective call. Like a Jade Lizard, if done for a credit greater than the width of the call spread there is no upside risk. By adding the call credit spread onto the naked put, additional premium is collected pushing down that lower break even. I really wish I’d done more Big Lizards this week on stuff vs. naked puts. Here’s my trade:
May 18 -320p/-320c/+322.5c for net 3.62 cr. Since 3.62 is greater than the $2.50-wide call credit spread, there is guaranteed profit to the upside, no upside risk. The break even is figured by simply subtracting net credit from the put strike: $320 – $3.62 = $316.38. I’m running all my LMT’s with 3 contracts.
$MTN BTC 5/18 240 call and STO 6/15 250 call for additional .80 and gain potential 10 points
$SPX BTC 5/18 2745/2720 at 6.00 STO at 2.45 Took advantage of today’s dip. Whew!
$AMZN STO 6/15 1460/1500 BUPS at 4.68
##SPXcampaign Sold a couple before and after the closing bell.
Sold $SPX June 1st 2625/2650/2750/2775 #CondorRoll for 8.00.
Sold $SPX June 14th 2810/2835 call spreads for 1.60.
Bought to close:
$CMI Jun 15 120 put @ .15. Sold for 1.60 on 11/17.
$KR May 18 25 puts @ .43. Sold for 1.31 as a rollout on 4/20. Overall profit on the position .42.
$CI Oct 19 135 put @ .80. Sold for 3.00 on 3/13.
Rolled May 25, 162 calls to June 29 162 calls for a credit of 4.95 against my 150 calls in 2020. I am done rolling until June 15 when I may roll out to 45 days again. Now I am going to the gym. Back tomorrow morning in Option Bistro.
$CPB #FallingKnife #Earnings – Earnings Friday before the bell.
Sold CPB 06/15/2018 37.00 Puts @ 0.65
Then an hour later
Sold CPB 05/18/2018 37.00 Puts @ 0.45
With the TNX breaking the 3.00% level I see the next stop at 3.60% and then 4.00%. So what does that mean for the TQQQ and market in general? The top of the trading range was 190 and the two corrections this year took us down to 130.If we break 130, I can see the TQQQ down to 70 since this is triple leveraged. The RSI has turned down but is still above 50 and the stochastics are still above 80 but have turned down. I can only say that at the 70 level, I like them a lot.