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
#spxcampaign
$SPX STO 6/1 2465/2490 BUPS at 1.85
$SPX STO 5/18 2750/2725 BECS at 2.70 Thank you @jeffcp66
I am not doing this but popped up on scan SRPT, biotech has earnings on 5/3 and premiums are huge. I am not playing it but looks interesting as a 1 lot.
No one will believe me because I did not post and everyone here knows my track record on directional plays, but at 1300 today I saw momentum changing (on my tools, I did not actually see it) and I distinctly counted 5 elliott waves on the way down. Maybe there is some ope for me trading directionally 🙂
Already short Aug 100 and 90 puts. Extending the ladder to Nov.
Sold $AYI Nov 16 80 puts @ 1.60 with the stock at 113.67.
#Earnings #CoveredCallCampaign
Sold $AAPL May 4th 160/180 #ShortStrangles for 1.27. I am also long the stock, so short calls are covered. Leaning slightly bullish on strike selection.
#SyntheticStock – been closing down some calls today in the hopes that the Fed announcement tomorrow will cheer the market and my stocks will blast off to the moon. Yeah right?
BTC EWW May04’18 52 calls for 0.04, sold for 0.37
BTC JPM May04’18 112 calls for 0.08, sold for 0.41
BTC SLB May04’18 71 calls for 0.04, sold for 0.31
8$NOC dipped below the 200 dma and has bounced back above it. Selling some premium in this name in June.
Sold $NOC Jun 15 280/270 BuPS for 1.25.
BTC DIS 4 May 103 call at 0.03 STO 0.30 waiting to sell next weeks with earnings on 5/8.
Rolled TNA 4 May 72 call to 11 May 70 call for 0.82 credit.
Yesterday BTC XBI 4 May 93 call at 0.04 STO 1.10. looking for a bounce to sell again.
#syntheticstock #leaps.
BTC May 16, 2900 calls @.05 which was part of a 2900/3000 bear call spread. The spread was sold at .45 and I will let the 3000 calls just expire.
#LongCalls #LEAPS – In an #IRA so have to close before I can sell the following week. Paying a couple extra pennies to get next week going sooner.
Bought to Close TNA MAY 4 2018 72.0 Calls @ .08 (sold for 1.23)
Sold TNA MAY 11 2018 69.5 Calls @ 1.05
Taking risk off here by closing my May 4th short PUTs
#shortputs
FAS Closed my FAS 64 short Put @ 2.31. Sold yesterday @ 1.20.
ERX Closed my ERX 35.5 Put @ 1.75. Closed my 35 Put @ 1.37.
FAS #PIETrade Bought to close May 4th 66 Covered Call @ .15. Sold yesterday @ 1.02.
#SPXcampaign Closed $SPX May 11th 2500/2475 put spreads for .95. Sold for 1.85 on Apr 13th.
#ReverseRoll PLUS: Sold May 18th 2700/2725 call spreads for 3.80.
Closed the put spread earlier than usual and sold the call spread to balance out the SPX campaign portfolio…. I am heavier on short puts but prefer to be more balanced in such a range bound market.
Looking for $BA to stay in its trading range with 310 at the bottom. Stock is in its second big down day (almost 5% since Friday) but it looks like the big volume is starting to wane. I’m admittedly early but there’s enough room here, with the stock at 328.63, that I feel comfortable with it.
Sold $BA May 18 310/300 BuPS for 1.34.
https://s3.amazonaws.com/cherry-picks-s3-bucket-newsletter/live/18_05_01_tastytrade_Research.pdf?mc_cid=b1c14c6f61&mc_eid=c66a1885a5
Benefits:
The premiums are huge, easier to roll than some of my #pietrade names
Because it is an ETF like @jsd501 mentioned one company going bankrupt or merging is not going to destroy the ETF it will still be there.
Most are fairly liquid.
Can take a directional bet if you are into that kind of trading 🙂
Can use them to move into and out of sectors
Risks:
Leverage cuts both ways
Looking at how most are structured do not think we will have an XIV/SVXY occurrence but several have had reverse splits. Need to pay attention to potential reverse splits.
A rapid move may take some time to recover.
Some move a lot more than others, TQQQ for example moves more than TNA.
Margin requirements are stricter. TOS requires full cash value when calculating margin. Don’t know if it is different for portfolio margin.
So far the moves have been more manageable with these than some of my #pietrades. I would not load the boat on them, but see this as a viable option to single tickers to get better premiums and easy rolling.
Thoughts, others seeing something with risk that I may have missed? Anyone found any others I have missed?
Currently using ERX, FAS, TNA, TQQQ, UPRO, UDOW, LABU (many reverse splits), BIB (no weeklies 😦 ), UYG same, UCO, UBIO no weekly, SOXL no weekly.
Anybody found others wiht decent option volume?
#PerpetualRollingStrangles – This week’s 120s look safe so going out a couple weeks for the next sale…
Sold TLT MAY 18 2018 119.5 Calls @ .52
We are 20 points away from the 200 day MA and could go below it on any bad news. The RSI and Stochastics don’t look good. I have positions and they are Fuzzy trades as well as short puts on various stocks. I am also 50% in cash and don’t trust this market. I hope I am wrong but I feel more comfortable being in cash.
Rolled GM 14 DTE 38.5 CC down to 38 24 DTE for 0.23 credit. Cost basis now 37.81 after 15-16 weeks of rolling. Like an old car this trade just won’t die. I am just targeting a break even on this so I can use the capital somewhere else but I suspect will still be rolling this in the summer.
Take GM off the #pietrade list for a while, moves more than the premiums allow you to adjust.
#shortputs #rolling #earningstraderepair SKX
Rolled May 18, 37 put to October for .20. SKX is at 29. I’m a little concerned about assignment, stock is at 29 and now I don’t have to worry about it for awhile-maybe. This was an earnings strangle-hey, the short call worked out.
XOP #coveredcalls, #pietrades Bought to close my May 4th 39.5 Call @ .25 . Sold yesterday for .50.
#LongCalls #LEAPS – Added one to my existing position…
Bought TQQQ JAN 17 2020 150.0 Call @ 38.00
Sold TQQQ MAY 4 2018 147.0 Call @ 1.70
SPX #SPXCampaign Closed my May 18th 2770/2790 foray into a debit spread for .30. Originally bought for .75.
Sold $TPR Nov 16 40 puts @ 1.55
#ShortStrangles – Rolling the put side up to the 50ma…
Rolled WYNN MAY 18 2018 172.5 Puts to MAY 18 2018 180.0 Puts @ 1.12 credit
Position is now May 18th 180.0/197.5 Strangles @ 4.76
#Earnings Closed $SHOP May 4th 115/150 strangles for 1.10. Sold yesterday for 1.75. I wasn’t liking the weakness and don’t want to tie up the margin if the puts go ITM.
Options Bistro 