Efficiency of capital round 3…

Efficiency of capital round 3 or 6, lost count.

While sitting in airports and riding in the plane was thinking about how to improve #pietrades and any trade you were assigned. Here is what might work, may convert MU tomorrow to see how it works.

1. set up weekly ladders, 21 DTE seems to be ideal except going into earnings. EXPE and WDC are holding most of its time value right up until tomorrow. Less chance of getting assigned, easier to adjust farther out, more premium for strikes OTM. Also they decay quickly enough you can usually roll in 1-2 weeks if they stay OTM.

2. If put deep ITM better to take assignment and convert to covered calls.

3. However, instead of taking the stock long term like I did with GM (22 weeks), may be better to sell the stock at a loss and reset to a #fuzzy using a calendar or lower strike call. Then you are in the trade longer term, cost basis goes up, but the big advantage is you free up a ton of margin to use on more profitable trades. Then just a matter of recovering the initial loss and working the LEAPs down to cost basis of zero.

I may try this as a long term experiment with MU tomorrow, close to break even on cost basis but want to keep collecting MU premiums but would rather not hold the stock for 24 months. This is how I recovered a 17 point drop in SWKS so I know it works. My only concern is could end up with a bunch of #fuzzies when what I really want is #pietrades. However, once profitable could close out the #fuzzy and reset.

Will keep everyone posted.

Greetings from Yokohama

After 24 hours of travel I was NOT staying up for a 10:30pm market open, so I set up a few orders and slept through the night.

Sold strangles on $FB #Earnings… 197.5/230, fortunately small in size!
Closed $EOG #PreEarnings trade for almost a double.
Closed my final $SPX spreads for profit. Now flat in $SPX for first time in 3 years.

Boom… sputter

Today was a fun and busy day. Looks like tomorrow will just be a busy day.:-)

STC EA pre-ER for small loss. Second pre-ER loser this quarter. GOOGL was the first.
STC CAT pre-ER Aug3 140c @ 3.80 for 58% profit. Bot @ 2.40. Third and last round of CAT
STC SHOP pre-ER Aug3 180c @ 4.40 for 42%. Bot @ 3.10 ydy. Third round of SHOP pre-ER
Rolled BABA Aug10 calls down to 35d twice collecting $1552 profit.

BTO BABA pre-ER Aug3 202.5 @ 1.46. Third round of BABA pre-ER
BTO WYNN pre-ER Aug3 167.5c @ 3.60. Fourth round of WYNN pre-ER
BTO LRCX strangle Aug3 175c/167.5p @7.37. Will hold through earnings for a pop or drop.
BTO CHKP post-ER based on reaction to earnings. Aug17 120c @ .85
BTO GRUB post-ER trade Aug10 140c @ 2. Will buy more layers if pullbacks.


Gradually catching up and easing…

Gradually catching up and easing back into trading from vacation.

Only a single roll today. More to follow tomorrow or Friday.
#pietrade MU rolled the 55 call out next week for 0.44 credit. Cost basis is now 55.79.

Tomorrow will have EXPE, WDC or not depending on earnings response.
AMAT, TQQQ, FAS, XBI, and second batch of AMAT.

Hope everyone had a good week.

@smasty160 is right, weather was awesome except for the 104° day but even that did not feel hot compared to east coast.

Stocks down after hours BIIB…

Stocks down after hours
BIIB – $43
TQQQ – $4
TWTR – $3
PYPL – $5

trying to place a post…

trying to place a post please let me know if it appears previous attempts have failed


#Earnings – Just for the heck of it….

Sold 212.5/217.5/222.5 Iron Flies @ 4.48

Risk 52 to make 448 but need half the expected move…low risk with low probability.