With the Vol getting so low, is it a good time to buy some Leap calls in UVXY or VXX?
Closed Half Early
$YY STC 6/8 116 calls at 6.93 BTO 6/1 at 4.78 Probably close the rest tomorrow before YY Earnings
Closed All Early
$RHT BTC 6/15 150/160 BUPS at .50 Achieved 74% of full profit
$LABU Rolled again BTC 6/15 89 calls and STO 6/15 98 calls at $6 debit. Gained $9 if called away. Fingers crossed
#SPX Camapign closed the call side of my messed up June 15 IC. Tried to close the Put side but no takers yet.
#pietrades Sold June 8th 37 Puts @ .87 when TWTR was at 36.73
Sold FAS June 8th 68 Calls @ .60 against long stock
Sold NUGT June 15th 26 Calls @ .61 against long stock. I couldn’t get .30 for June 8th expiry but .61 for June 15th.
Dumped my SVXY LEAP 30 Calls @ .30. Time to cut the wish cord and more on.
Sold an AMZN June 8th 1605/1585 BuPS for 0.56.
Sold BAC June 8th 30 Call @ .08 against my stock. I was going to just close the position but decided to sell calls as the method. Might make a few coins before it is assigned.
And that is the whole story.
Have a great evening
#SPXcampaign Stopped $SPX June 22nd 2800/2825 call spreads for 3.85. Sold for 1.80 last Wednesday.
I’m using a 4.00 stop on standard campaign call spreads, which this breached right after the open, so I got out on the pullback. I’ll consider how to roll tomorrow.
#LongLEAPs Sold $TQQQ Jan 2020 83.33 call for 6.30.
Today, as $QQQ just notched an all time closing high, you can see the TQQQ is about 5% below its highs. This is due to the compounding effects of a 3x leveraged product. The same force that drags NUGT, DUST, GUSH, DRIP, and others downward will drag on TQQQ. Because we’re in a long-term bull market, it is harder to see this force in the chart, but today’s high gives you a good snapshot when comparing to QQQ. Thus, I like selling farther out 83.33 call against my long 2020 50 calls. I just sold 1 today (against the 3 longs) and can add more at better prices or different strikes. I am ALSO still selling short term calls, so this will throw my deltas out of whack, but I’m really looking at each of the short calls separately and less at the full picture. Upside risk on a ContangoETF is not difficult to manage.
Rolled the June 8 210 calls to June 15, 212.5 calls for a .10 cent credit.
The reason I like this ETF is that it is an index not tied to futures or anything else. It will not go out of business and since it is really technology that will drive profits. Also, the premiums are really fat and nice.
I also keep 50% of the account in cash in case of a black swan and would double up under the right conditions.
It seem s to me that this is a long term trade of years and I would like to hold the long term leaps for several years and book 100 points or more. If you had bought this ETF when it came out, you could have made 28 times on your investment. The beauty of the leaps is that you have leverage and if you can sell short term calls to pay for the trade as well as get the increase in price if the price goes up, then you have a big winner.
This is where the roll out to the next year makes sense when you have earned enough premium to cover the cost of the leap. Am I making sense or smoking hopium?
Rapid fire trades (not as fast as an algo but close). 5 accounts in 15 minutes! All expiring this week so added a week.
#pietrades rolled LABU 85 puts up to 92.5 in 3 different accounts for credits of 2, 20.5, 2.25. I expect these may be challenged if we get any pull back.
AMAT rolled 51 cc to next week for 0.30 credit. Cost basis now 52.39. 2-3 more rolls should allow me to keep the original credit.
AMAT 50.5 CC will allow to expire this Friday. Cost 49.56 so a nice winner after 3-4 weeks of rolling puts and calls true #pietrade style.
GM 37.5 CC will close Friday finally. A little loss, cost basis was 37.72 but will just be happy to have the cash to use for other trades. Staying out of this one until the premiums are much better.
Back to sitting on my hands until Friday or Monday depending on what the rest of the week does.
Collected another $3163 in premium from these trades so nice week for trading a few days early, did not expect the market to stay up, will probably pay for a few of these trades later but at least have a cash cushion now 🙂
#LongCalls #LEAPS – Now that we’ve got the upside risk to these somewhat contained I gave some thought over the weekend (scary!) about the other risk to these that I’ve noticed concerning the downside and possible whipsaw.
Even with the LEAPS, if the stock has moved against you quite a bit they can pretty quickly start running out of juice to sell against when they get down to the last 6 or 7 months. For instance my LUV 2019 60 strike LEAP calls are already down to 1.60 with 7 months still to run. Eventually these positions reach a point where the LEAPS don’t protect the short calls very much on a big whipsaw even if selling less than a full position.
So…what’s a possible remedy to this? Here’s what I’m planning for the stocks that I don’t mind selling against for the long term. I am going to roll my current LEAP position to the next LEAP as soon as it’s available. The debit is minimal and gives a LEAP to sell against that still offers some upside protection.
Then…think of it this way. Each year you don’t have to sell enough to cover the entire cost of the LEAPS…just enough to cover the cost of the debit roll to the next year when it comes out. Everything beyond that is profit. I feel like longer term the debit roll will be covered very easily and subsequent debit rolls can be taken out of the long term profits and they won’t even be an issue. Also when these rolls are done it will allow any adjustments to be made to the LEAP strike prices if you feel it’s necessary.
Here’s what I did with TSLA this morning. Since I’m wanting to sell against it long term and I’ve already got a 2020 position on the call side I’m rolling my 2019 put side out to 2020. This evens things out and gives another year of selling for a minimal debit.
Rolled TSLA Jan 2019 300/200 BePS to Jan 2020 300/200 BePS @ 8.50 debit.
That’s a small price to pay for an additional year of selling and avoids even the slightest whiff of theta working against the position. When the 2021’s come out in a few months I’ll re-evaluate to see if a roll would help.
Jun 04 options
STO BeCS 2755/2765 for 0.65
STO BuPS 2735/2725 for 0.35, 0.30
watching to add BeCS 2755/2765 for $1.00cr
Ahhh, I love June!
I have 2 “Virtual Call Assignments” today due to extrinsic losing most of its value:
TQQQ 6×3 #CoveredBackRatio netted $837 (closed entire position)
MSFT 14×8 #CoveredBackRatio netted $1120 (closed entire position)
Rolled MU Jun 8 to Jun 15 qty 5 calls for $670 profit on jun8
MA debit rolled calls from Jun8 192.5 to Jun15 195 for -$654 on a 2-lot
STO Jun 8 1625/1622.5 BuPS .37 2x #Bitty
BTO Jun 15 100 Call 2.25 Looking for a continued move up. Not something I usually do.
BTO DIM Jun 8 1617.50/1620.00 2.17 #Bitty
STO Jun 8 345/342.50 .26 BuPS #bitty
BTC June 15, 50 puts @.01, sold @1.10