Some observations as I closed…

Some observations as I closed out another week. Good 3 weeks 🙂 the pull back a few weeks ago really helped.

1. Critical mass on accounts seems to be around 50k. At that point the compounding really starts to kick in and the account becomes self sustaining for positive theta, #pietrades, income trades. Trades that need to be adjusted do not seem to affect the account value as much at these levels as well. Trading 6 different accounts with different values, lowest $3500 so can really see the difference. Each contract adds a lot more cash each week. 5-10 contracts is where the income really starts to compound and pay off. Even 3 contracts is a lot better than 1 unless talking AMZN or PCLN.

2. Some names are just better than others. GM is out as soon as it closes this week. Names with perceived high volatility but don’t really move around a lot and have good premiums (0.5-1% per week minimum) do the best and are easier to adjust.

3. I try to suck all the time value out of an option but once down to 0.2 roll it for better theta decay.

4. defending trades, easier to do it before the option goes way ITM or better yet, roll it before it even gets there. You will loose a little in time value but by rolling earlier you can stay ahead and continually bring in credits. Now if it is sitting right ATM I will wait until the last minute to roll it but if there is any time left, easier to roll early.

5. Taking a slight directional bias really increases returns. Allows to sell puts closer to ATM and also time call sales better.

6. For small accounts the #supercharger seems to work the best. Better ROI than credit spreads, less adjusting, less risk overall (defined) and more cushion for pull backs as you are already deep ITM. However, have to work the spread on entry or the exit is not as profitable. For any of my accounts under 10k I will be doing a lot more of these. 10k and up probably #pietrades with some #fuzzies thrown in. Occasional #spycraft as well but to be honest the #supercharger are doing much better when we have pull backs and more consistent gains.

Sitting on my hands until Fri. Hopefully we have a pull back, at least a little one where no one gets crushed 🙂

#fuzzy

FB

#LongPuts #LongCalls #LongLEAPStraddles – A couple trades I didn’t get a chance to post. Similar to TSLA, I’m playing this both directions. I’d like to see a pullback so I’m making a couple very bullish trades…LOL.

Calls:

On the call side adjusting everything up to get the short calls more rollable and back in play. If I can get the short calls to expire at some point the LEAPS have 7.10 gains in them along with another 6.95 of weekly premium so far.

Rolled 170 long LEAPS up to 180 @ 7.10 credit
Rolled 170 short weekly calls up to 177.5 @ 7.15 debit (and rolled out one week to Jun 22nd)

Puts:

Rolled short weekly puts up again. Aggressive roll here to in the money and near all time highs (gulp!)

Rolled 187.5 short puts to 195.0 puts @ 2.17 credit. (total credit on this batch now 6.12)

Of the 6.12 credit on these current short puts the last 2.22 is my first #PureProfit with 32 weeks still to run on a 5 lot…

SPX Trade

#spx

Friday afternoon
BTC Jun 22 Weekly 2625 Short side, at 6.50, Prev sold on 5/21 for 11.10
Gain at 43%
Resold Same Put for 6.40 X 2 contracts, 12.80 total credit
Took my small Profit as ES was at the High of the Day..

“Thongs”

@MamaCash is the one that comes up with all the creative trade names (Atomic Alligators). She just told me we’re going to start calling the “Theta Long” trades (like covered calls, etc) “Thongs”. I won’t hashtag this, but thought you’d all laugh with me.
Sue