smasty 8:58 am on Tuesday, May 22, 2018
Tags: AtomicFuzzy ( 12 ), Fuzzy ( 414 )

May 22

MU: I took $4200 profit on a covered LEAP #Fuzzy. One thing I know about MU is it has always provided good re-entry points (pull backs) after rallies.
MSFT: Rolled #AtomicFuzzy covered calls from May 25 to June 8, 100’s, collected $470 on roll
ISRG: Rolled LEAP fuzzy covered call from May 25 480 to June 1 465, collected $380 on roll
SPY x 3: Closed May 23 Jade Lizards for 50%, collected $991
SBUX: Added short backratio yesterday on news that non-paying guests are now free to displace paying guests, at shareholder expense. July 4×2 put backratio (60/57.5). I’d like to add to this or ladder in a longer expiration.
RHT: Added Dec bullish covered backratio: 150 c x8 + 160c -6, short 165 c x2 @1.50
ADBE: Added Oct bullish covered backratio: 230 c x10 + 240 c -5, short June 1 245 call -5 @2.14

smasty 1:11 pm on Tuesday, May 22, 2018

Couple more:
SBUX added an In-n-Out put debit spread, Jun 22 58/56 for .91
RTN: Yay! Weeklies are back! Rolled Jun 220 calls to June 8 215, collected $430 on the roll
TQQQ: Added a covered back ratio Dec 130/164 2×1 with Jun 1 short 166 call, stock basis = $160.64
TSLA: Closed a put diagonal for $800 profit, reset as a covered put back ratio, stock basis = $283.40 (high is good since it’s a short) after reset (Aug 315/275 2×1, June 1 270 short put)
CVX: Rolled calls from May 25 to Jun 1 for $114 net on roll (price of this week’s calls was affected by div)

Anyone doing backratios, here’s your formula for figuring out your stock cost basis:
((Long strike + debit for that strike) – (short strike credit * (qty short strike/qty long strike))
That will give you your stock price equivalent, from which you can subtract hedging credits.
- fuzzballl 1:27 pm on Tuesday, May 22, 2018
  
  I’ve never done a covered put back ratio. On the TSLA trade is that (Aug 315/275 2×1) buying one Aug 275 call and selling 2 315s and doing that against a Jun 1 270 short put?
  
  Way above my pay grade…LOL
  - fuzzballl 1:28 pm on Tuesday, May 22, 2018
    
    Or is the 315/275 an in the money bull put spread?
    - smasty 1:36 pm on Tuesday, May 22, 2018
      
      Hi Fuzz! It’s that Liz/Jny trade that we had a discussion on last week. So I bought 2 Aug 315 puts, Sold 1 Aug 275 put for a net price of 74.50, but the pricing is wonky on ratio spreads. The stock-based price is 277.75 as a short (limited risk) 100-share stock replacement on TSLA. Then I sold 1 Jun 1 270 put for $5.65, taking my stock-based cost basis to $283.40 (more is gooder, as one of my friends said to me today).
      - fuzzballl 1:43 pm on Tuesday, May 22, 2018
        
        Aah ok…I need a reminder sometimes. 🙂 🙂
        
        Bought the in the money puts and then sold one in the same expiry and another one in an earlier expiry if I’m following correctly. Not sure what it’s called but in my Fuzzy mind I can see it when the details are laid out in kindergarten terms!