Sue, what do you think about using your strategy for trading over earnings?
Am I missing something here?
For example:
MU
BTO Aug 17 62.50 Put
BTO Aug 17 60 Call
STO June 22 58 Put
STO June 22 63 Call
Limited risk + possibility to keep selling premium.
After window shopping at Options Bistro for several months, I’ve decided to come inside and talk shop. One of my best days as a trader was the day I discovered the Bistro. I’m so impressed with the creative ways that everyone here makes money. I love how you fight to get back to even no matter how long it takes. My inclination as a trader has been to take my lumps when I have a loser, dump it, and move on. I’ve learned at Bistro that there is a better way.
As to where I fit in the growing Bistro family, I’m Smasty’s (Sue) sidekick. We are on a perpetual hunt for better, stronger, and more profitable trades. She is the options maestro and I’m the wordsmith and caretaker of the petri dishes. She comes up with innovative, sometimes complex trade designs. Together we analyze them, tweak them, name them, and test them with real money. We are relentless mad scientists. We’ve discovered and customized trade designs that work in almost any market conditions.
I’m a trend trader at heart. My approach is to determine the trend (bullish, choppy, or bearish), identify instruments that move with the trend, and use designs that capitalize on the trend. I gravitate to high probability, limited risk trades that allow me to trade another day if the worst-case scenario plays out.
My favorite setups are diagonals, collars, fuzzies, superchargers, calendars, pre-earnings, and long shots. I trade unhinged when I’m really bullish and unbalanced when mildly bullish. Forgive my cheeky sense of humor.:-) Beware my favorites list is subject to change daily. After all, Sue is my trading partner. We never met a trade that couldn’t be improved and we don’t mind leaving our failed petri dishes by the side of the road. Lol.
Thank you, JeffP, for allowing me to be a contributor. It is an honor. I look forward to sharing trades with you and continuing to learn from all of you.
A late fill. BTC July 20, 205 calls and STO August 17, 210 calls for a credit of 1.92
This against my long January 2019 200 calls.
#spxcampaign
$SPX STO 6/22 2755/2780 BUPS at 6.20 Thank you @jeffcp66 Long live the SPX Campaign
#rolling
$MTN BTC 6/15 250 call and STO 7/20 270 call for 15.40 credit. Will gain 20 if called on 7/20. Uneasy feeling.
Afternoon all Had a few trades this morning before I headed out.
AMZN #BuPS June 22 1585/1605 @ 1.05 when AMZN was at 1687.
ROKU #ShortPuts Sold ROKU June 15th 39 Put @ 0.65 when ROKU was at 41.37
FAS #ShortPuts Sold June 15th 69 Puts @ 0.80 when FAS was at 70.81
#Coveredcalls
This afternoon
Sold DBX June 22nd 31 Calls @ 0.45 when DBX was at 30.13. Had to go out 2 weeks for a fill on the 31 strike.
Have a wonderful evening. Stay cool.
#ShortPuts #IRA – Moving out into Jan for next sales…
Sold EWZ JAN 18 2019 35.0 Put @ 4.46
Sold EWZ JAN 18 2019 3o.0 Put @ 2.10
#Earnings – This thing just looks way overbought here. Taking a shot with a #JadeLizard with no upside risk while giving it some downside room. Thanks @Jeff for the data on this. Staying small here…
Sold RH JUN 15 2018 94.0 Puts @ 1.37
Sold RH JUN 15 2018 120.0/122.0 Bear Call Spreads @ .75
Total credit 2.12 with 2.00 of upside risk. Breakeven of 91.88 to the downside which is about 10 dollars more than the expected move.
#LongPuts #LongCalls #LongLEAPStraddles – On the subject of TSLA….a few adjustments here playing both sides.
Put side:
Been rolling this week’s short puts aggressively up to at or slightly in the money. Currently short two 325 strike puts for Friday @ 17.00 total premium. This will have 38.20 of the original 64.60 purchase covered with 2020 still a few weeks away 🙂 .
Call side:
Had been rolling weeklies out and up to try to stay out of the way. Today since it looks like TSLA could possibly close above the 200ma I bought to close one of the two weekly calls at 30.00. This gives much better upside now. At some point I can re-sell that call or take it out of the massive put premium received so far. Or…could just add it back in to the LEAPS basis on the call side. I’m leaning towards that since the call side basis had already been reduced by 12 dollars (34 down to 22) with 83 weeks still to run.
Since both sides of the LEAPS were spreads (2 each) I’m considering only selling one weekly against those from now on. This will give much better profit potential in either direction with plenty of time to easily recover the original cost.
#rolling #shortcallspreads TSLA
grrrrr TSLA not cooperating again, rolled 2 June 310/315 spreads to July 20, 330/340 for .20, up about 11 today to 329
#shortputs
$TWTR STO 6/29 39.50 puts at.95
#earningstrade
Earnings are Wednesday.
They beat three of last four reports. The fourth matched expectations.
I have order in to sell 6/15 $30 puts at .85
Lowered Price
#shortputs
$TLRD STO 6/15 30 put at .80
HI, last week i posted a 7/27 IC. Calls of that IC are 2850×70, sold them for 1.16. Normal stop is 4x, but since major swing highs are being probed, i’m going to 5x for a little more room. Will most likely regret it. Stop is set for 5.45, limit is set to 5.80. 5x is my line in the sand. Have sold 2 calls spreads the lat 9 months, and once again, getting stopped. That’s trading. Am short more puts than calls, but still short deltas, have multiple back month dotm puts for tail risk.
#SPXcampaign As I posted on Friday I am scaling back on this strategy, at least until I can clear the decks and regroup.
I’ve decided to sell half my normal amounts for the time being. I will however, add extra longs when we get an Upside Warning.
Today my stop levels were breached on my remaining call spreads… although I did add a new one this morning. Last week I stopped several calls and added a couple ATM put spreads, which are helping recoup a chunk of change.
Sold $SPX July 13th 2870/2895 call spreads for 1.65
Closed on GTC order: $SPX June 15th 2700/2675 put spreads for .40. Sold for 5.25 on May 24th.
Looking to close call spreads on any pullback, will post below.
#Earnings This is one of the most difficult earnings trades to nail… More often it shoots much higher, but then it has been known to reverse sharply and gobble up longs. Premium is thus quite elevated… selling a strangle over 20% OTM on both sides…. Stock is currently pretty extended to upside and the put side is comfortably down near the 200 ema.
Sold $RH June 15th 90/146 strangles for 1.75 (calls are highest available strike)
Biggest UP move: 49.4%, Biggest DOWN move: -28.6%, Average move: 14.6%. My strikes are +24.5% and -23.3% OTM
#spxcampaign
$SPX BTC 6/29 2840/2815 BECS at 5.20 STO at 1.60
My only trade so far today is a “Ratio Double Undie”…commence rolling eyes 🙂
Playing around this weekend on Undies #UnbalancedDiagonals I found that adding a 2×1 put undie to the mix lowered risk even more without sacrificing a ton on the upside profit.
Work this up in your analyze tab to check it out. This is my actual trade:
NVDA: I picked July 27 expiration for the long to avoid the earnings volatility. July 27 + 8 255 calls @ 14.30, July 27 + 2 270 put @ 14.10, Jun 15 -6 265 call @ 2.10, Jun 15 – 1 275.5 put @ 1.69.
Stats: Theta for this week alone: $1429, Max risk: About $6300, Profit @ $265: $2080
Without that little put add on max risk is just over $9900, so it really cuts risk while maintaining high profit capability.
Today is shaping up to be a theta day…not a lot to do.
Sue
#shortputs JWN
May 18, sold an Oct., 40 put for 1.48, Nordstroms had dropped to around 46 after earnings. Bought today for .45. It is up to almost 53, 8 consecutive up days and up 12 out of 13 (so much for the 3 day rule).
TWTR #Longstock Bought a small bit of stock in my Roth for a long term hold @ 40.95. I will sell a weekly call against some of it about a 25 delta to reduce my basis.
#LongCalls #LEAPS – Still trying to work this back to even…almost there. Replacing Friday’s expiration.
Sold CELG JUN 15 2018 80.0/85.0 Bear Call Spreads @ .45
#LongCalls #LEAPS – Early fill this morning…
Bought to Close EWZ JUN 15 2018 37.0 Calls @ .05 (sold for .50)
Sold EWZ JUN 22 2018 35.5 Calls @ .42
#bullputspreads Closed my AMZN June 15th 1580/1600 BuPS for 0.25. Originally opened 6/5 for 1.04.
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