I had a lot of 273 naked puts for today’s expiration (BTW, I love using Wed expiration for assignments so I don’t have to wait for over a weekend to hedge in 401K accounts. In non-401K I will sell calls in advance of assignment but you can’t do that in 401K accts). I was able to cover my puts for 25% profit today, then I flipped them to #BigLizard trades.
SPY May 23 -272.5p/-272.5c/+273.5c for 2.03 cr. Doing a Lizard brought in 25% extra premium vs. doing an ATM put only. Break even is 270.47 on these.
It looks like I will get an assignment on $274 SPY shares. Rather than sell calls-only against that position, I will explore a reverse Jade Lizard to bring in some put revenue, similar to a covered strangle, but less risk. I’ll update this after the close.