#SPX1dte Sold $SPX Dec 31st 2360/2380-2570/2590 for 1.40.
#SPX1dte Closed yesterday’s for .25 total. With the rolls I had to execute yesterday, the full trade ends up with a .35 loss.
Waiting until closer to the close to sell today’s, to avoid that kind of mess!
Hi Everyone! I just couldn’t find a new bread-and-butter trade this year that justified reporting, so I lost track of a lot going on here. I did find some good new approaches though. I found Scott Ruble (Stratagem) to be an excellent teacher on structured courses, but a terrible terrible subscription provider. @kathycon and I have used several of his approaches in the last few months to make money…#AdvancedRiskReversals, #SpikedCollars, #LayeredSpreads, and #RollingThunder. Scott was with Random Walk for awhile before having a falling out. Ed has taken Scott’s place at Random Walk and has a $50/mo subscription service that I quite like. Very reasonable for what you get. Ed’s approach is #PregnantButterflies which layer in spreads in a way to provide wide profit ranges, often risk free. The #RTT (Road Trip Trade) trades at Aeromir are good (BWB), and they manage them very dynamically using a lot of Scott’s teachings. The one month trial of RTT is very worth it. Option Pit is still great….but VERY deep and takes a ton of cerebral work….especially if you think you know it all already (like I did).
The only update I’ll give is on NFLX. I made a solemn vow in @fuzzballl ‘s name that I would stick with this until I was even. I started at $358 a share and am now down to $272….that’s a ton of cost basis reduction! I’m accomplishing this two ways…. 1. using weekly debit wide broken wing put flies (Ed calls them “Venus Flies” for the downside collar, and. 2. using weekly covered calls to finance the flies. As you can see I’m still off the mark on break even….but I’m being mechanical with the income collection and tracking every cent against the cost basis. I’ve only got 100 shares of NFLX so the ride down has been manageable.
Hope we all get what we want from the market next year! This last year is one of those that seriously refines you as a trader. Survive….and you come out a much better trader.
EOG #fuzzy 110/110 leap puts. Rolled the long out to 2021 for additional 3.20. Cb increased to 14.64 but now have 107 weeks to manage it.
#Jobs report is Friday. And Powell speaks later that morning.
Link to calendar: https://optionsbistro.files.wordpress.com/2018/09/screen-shot-2018-09-24-at-6-07-52-am.png
#LongCalls #LEAPS – Something I’ve been considering for awhile now that things have dropped so much. Looking at getting into a long term BABA position. Instead of buying LEAPS at the money I’m considering going out of the money further to save a lot of cash up front and then just selling the weeklies more conservatively.
Looking at LEAP strikes in 2021 somewhere in between it’s current range. It’s traded from 130 up to 210 so halfway is about 170. Could even go to 180 and get that for half of what the 130 would cost. On a recovery it will still make good money but not require a whole lot of weekly selling to get the cost back.
No position yet…
LNG 61 cc rolled out 2 weeks for 0.74 credit. Cb 58.53
Lot 2 62 CC rolled out 14 DTE to 61 cc for 0.53. Cb 57.7
Might have a few more later in the day
I’ve been traveling some, watching the carnage and getting assigned on many ITM put positions, turning me into a #coveredcalls guy.
From the correction, I involuntarily own shares of AAPL, AA, AMAT, AXDX, KORS, M, MAT, MRO, NKTR, SLB, T and X. You hedge fund managers can start a buying spree on any of these.
Denny’s still won’t go down.
STO January 25, 45/50 call spread at .20 cents. I am pre selling these against my 65 calls that expire on January 18.
Have a few that are way ITM now. Wish I had ratioed them in Oct. but too late now. Since you seem to be the only one with enough patience to take these to the end here are my questions
1. About how long does it take you to scratch the trade one ITM?
2. Seems like the best way to get any decent premium is to sell 43-45 DTE and reset at 22 DTE. Have you found that as well?
3. Once the new series of LEAP comes out does it make sense to roll the longs to the new leap for $3-4 or hang on to the one you have until the end?
I am debating taking some tax losses and resetting vs. hanging with the ones I have.