#SPX1dte Sold $SPX Feb 2250/2270-2730/2750 condors for 3.00. Will close at or near 50%, or 1.50.
Monthly Archives: January 2019
Econ calendar for week of 1/7/19
Fed minutes, Wednesday at 2pm ET.
Link to calendar: https://us.econoday.com/byweek.asp?day=7&month=1&year=2019&cust=us&lid=0
EWW REGN TNA UVXY WYNN
#LongCalls #LongPuts #LEAPS – Rolling some and booking some….
EWW: Precautionary…
Bought to Close EWW JAN 4 2019 42.5 Calls @ .15 (sold for .36)
REGN: Selling against ITM bull put spreads…
Rolled REGN JAN 4 2019 385.0 Call to FEB 1 2019 405.0 Call @ .09 credit (should be prior to earnings)
TNA: Booking over sales early just in case the rally continues…
Bought to Close TNA JAN 11 2019 50.0 Calls @ .26 (sold for .90)
Bought to Close TNA JAN 11 2019 55.0 Calls @ .03 (sold for .82)
UVXY: Rolling short puts…long puts finally starting to help. Added a couple BeCS also…
Rolled UVXY JAN 4 2019 80.0 Puts to FEB 1 2019 72.5 Puts @ .65 credit
Rolled UVXY JAN 4 2019 81.0 Puts to FEB 15 2019 70.0 Puts @ .26 credit
Sold UVXY JAN 18 2019 80.0/85.0 Bear Call Spreads @ 1.17
WYNN: Booking over sales early just in case the rally continues…
Bought to Close WYNN JAN 11 2019 114.0/124.0 Bear Call Spreads @ .85 (sold for 1.05)
TQQQ
#CoveredCalls – Adding one here. This is against some of my lower basis stock…
Sold TQQQ FEB 15 2019 44.0 Call @ 1.35
SPX 1-dte closed
#SPX1dte SPX hit my upside stop (expected move breached the 2520 short calls), so I exited on the pull back.
BTC $SPX Jan 4th 2520/2540 call spreads for 1.70. Condors sold yesterday for 1.25. Puts will expire, or close for .05.
I’ll be selling another 1-dte for Monday expiration. I’m looking for longer term roll options to replace today’s stop.
Credit spread tweaks
EOG STO the 21 DTE 97/98 ccs for 0.23. Cb now 14.41 against a 120/120 and 125/126 put #fuzzy
EXPE STO the 21 DTE 117/118 ccs for 0.20 credit. Cb now 9.43 against a 110/110 put #fuzzy.
It rained over the weekend and my family was busy so I watched a bunch of tasty trade re-runs. 2 things I forgot about. They did a section on defined risk and looked at the number of times tested credit spread returned back to the level you placed the spread. It was less than 2:10 times, actually I think as they looked across multiple occurrences and it was much lower around 2%. So gave me an idea for credit spreads and #spycraft which I will start up again next week after some CC are called away.
I will be very mechanical in adjusting credit spreads now. As soon as the short strike is breached, I will delta hedge it to neutral and create a back spread. Odds improve that if it is breached will not return to that level so at that point you have a directional trade and might as well take advantage if it.
What this means is that if the short strike is breached, I will buy back half the # of shorts calls/puts as the original credit spread thereby creating a 2:1 back ratio. Then if we keep moving in that direction you get the boost from the directional kick.
Probably best to set these up 21-45 DTE so you have some room. A weekly probably would not work as well once ratioed because of the gamma effects close to expiration.
December Jobs Report
#Jobs Much higher than expected.
+312,000 non-farm payroll jobs, vs. 176K expected
Unemployment at 3.9%, up 0.2%
U6 unemployment at 7.6%, unchanged
Wages up 0.4%, 3.2% year over year
Labor force participation 63.1%, up by 0.2
November revised up from 155k to 176k
October revised up from 237K to 274k
Reading posts a lot of…
Reading posts a lot of us are under water on a lot of tickers. Out on a bike ride I had a thought. Obviously selling below the cost basis a snap back rally you then lock in your losses if assigned.
I have been saying it for a while but have yet to do it, sell ATM call credit spreads. Bring in a little income, if the market rockets upward you are long stock, short an equal # of calls, but then have the same number of calls long or any ratio you choose. No cap to the upside.
Personally I am going to do this on my TQQQ trades with the next roll. Roll down right to ATM and then be long net calls for free.
Probably not the best to do these with weeklies, I would go out 30-90 days to give them some room. Then if you want back in the stock, let your long calls exercise.
As for my losing put #fuzzy, duh on my part, I should be selling CCS spreads all the way down. We reverse and I will back ratio them. The problem is I always do it too late. From now on if I sell a delta 20-30 and it reaches delta 30-50, that is the point I will back ratio and hopefully get a directional kick. If nothing else at least reduce the max loss.
Thoughts? Other ideas?
SPX 1-dte
#SPX1dte Sold $SPX Jan 4th 2345/2365-2520/2540 for 1.25.
Fully hedged on SSO, TNA, TQQQ, and TNA
Lightened up the hedges on my shares earlier this week so they could run. Now I’m back to weekly ATM short calls, put flies and WOTM puts. Who woke up the bear?
#shortstock PM Sold 100 shares…
#shortstock PM
Sold 100 shares short for 66.95
Also in the short world, DENN up another .30 today arrgghhh
Lots of trading and work,…
Lots of trading and work, not much profit. The #fuzzy trades hold up well but since I am so far out in time and so far ITM on some of these now, not much income or fast theta decay. Had I known we would be in a full bear I would have unhinged them and would be collecting profits now.
#fuzzy
EOG 110/110 puts are now way ITM. Market makers are being greedy. I have an order in to roll the 29 DTE out to 43 for 0.45 credit but no one will take it. If I can’t roll it will reset or shut the entire thing down for about a 6 point loss as it gets closer to expiration. Hoping for at least a little bump in oil prices. cb 14.64
EXPE 125/126 and 120/120 rolled the 15 and 22 DTE out to 36 and 43 DTE for a total of 2.1 in credits. Cb now 9.63.
GILD 70/70 nice bump today. Cb 8.48 and will roll in a few weeks.
MU 35/35 cb 14.80. Getting dragged down further into the black hole by AAPL.
WDC 40/40 cb 19.11 same as MU.
XBI 80/80 cb 13.97
LNG 50/65 cb at 14.54
GILD lot 2 67.5/69 cb 8.9
Most of these are out 15-22 days before further rolling.
#pietrades
TQQQ 50 cc at 57.60 cb. Will either roll to a leap in 2 weeks or hope for rebound. IRA so I can sit on it but would like to be generating some income.
TQQQ lot 2 50 cc 58.10. Same story.
LNG 61 cc expires next week, cb 57.7 and if expires ITM will be first real winning trade in 13 weeks.
LNG lot 2 61 CC cb 58.53 sam as above.
#lizardpies
SQ 55.5/55.5/56.5 straddle expires tomorrow rolled down to strangle 54.5/55.5/56.5 for 0.49 credit. Total credit now 2.04 with cb of 53.46 if assigned and no risk to upside.
I really think the jade lizard will be an excellent tweak to the #pietrades and possibly increase returns another 10% annualized. As I unwind some of these other trades will be putting more of these on.
I also need to be much better at directional trading!!!!
As I have said before, the income will not keep up with the drops, as much as the market is a 50-50 proposition, the more I trade the more I realize being right on directional makes a huge difference to the success of a trade and profits in general.
WTW
#LongCalls #LEAPS – 105 down to 37 and I still plan on making money on this…LOL. I sure know how to pick ’em!
Sold WTW JAN 25 2019 43.5 Calls @ .60
PVTL covered calls
#CoveredCalls Sold $PVTL Jan 18th 17 calls for .50.
Market Tide indicator today…
#Scalping -Been in and out today so no trade (fuzzy skeered…LOL) but the indicator seems to be working nicely in the chop.
LABU
BTC January 18, 63 calls at .05 and STO January 18, 40/45 calls spread for a credit of .52 cents. It is a good thing that I have 2 years to go on these.
#coveredcalls #firsttrade of 2019 AAPL…
#coveredcalls #firsttrade of 2019 AAPL
bought to close Jan. 4, 160 call for .02 yipee
Calls closed (again)
If I was only selling calls and didn’t have #LongLEAPs, this would be a brilliant strategy!
BTC $TQQQ Jan 4th 39.5 calls for .05. Sold for .74 on Friday.
BTC $SQ Jan 4th 59 calls for .05. Sold for .79 on Friday.
OLED
#ShortCalls – Stops set on previous call sales so adding a half position here prior to earnings. See if I can talk it into a small recovery…
Sold OLED JAN 25 2019 97.5 Calls @ 1.20
CELG
I rolled my January 18, 2019, 95 calls out to the January 2020, 95 calls for a credit of 2.80
CELG
Bristol-Myers to buy Celgene in a $74 billion deal; Celgene shares surge…
https://www.cnbc.com/2019/01/03/bristol-myers-to-buy-celgene-in-a-74-billion-deal.html
Market tide
@hcgdavis @fuzzballl
Thanks for recommending this indicator and for going to bat to get us a discount. The indie has paid for itself a few times over already.
Dodeka-Stupid on NVDA
Here’s a note that Trade Alert put out tonight:
Market Color NVDA – Interesting 12-leg Nvidia put spread minutes before the close totals nearly quarter-billion dollars premium. Over 31K deep puts traded in NVDA at 3:53PM ET today in an odd spread that involved 12 deep-in-the-money puts expiring Jan 18th. Stock was $136.22 at the time, and the package consisted of offer-side blocks in the 200 to 260 strike puts, priced from $64 to $124. Weirdly, size of each block is very near the open-interest of each contract and the price on each block was a whole dollar figure, 22c over parity, with total premium just under $244M. If the package was a buyer of all legs, the delta is nearly 2.4M shares, or 9% the adv of the stock. With negative AAPL headlines out after the close, NVDA shares are down nearly $4 to $132 which could be a gain near $9M if the spread was a dodeka-stupid.
That turned ugly quickly….
Guess the meeting didn’t go so well….buckle your seat belts.
A TRADE:
ROKU STO 1/4/19 32.5 CALLS @.80 Covered Expires in 2 days.
Alpha Shark Indicator
@MamaCash – Have you used it much? Finally got a chance to watch it for a day and liking the possibilities. Haven’t done anything live yet but the last long signal on the NQ futures finally went short this afternoon after a 240 point run…
#longputs Buy another Jan 02…
#longputs
Buy another Jan 02 2510/2500 BePS for $7.50 while SPX below 2500, 15 minutes to go and looks promising.
#ironcondor SPX sell BeCS Jan…
#ironcondor
SPX sell BeCS Jan 02 2530/2540 for 1.25cr this morning, expiring worthless it appears
buy BePS 2510/2500 Jan 02 for $4.00, sold hour later for $6.50
Off to a good start after nice finish last month.
Trades today
NVDA
#ShortPuts #IRA – Should be a week or two prior to earnings. Selling here allows an easy rolldown into earnings or booking a profit and selling again in earnings week.
Sold NVDA FEB 01 2019 120.00 Put @ 2.45
CME
#ShortStrangles – Loosely following some Whiz trades on this…only one contract just for fun. Should be prior to earnings…
Sold CME JAN 18 2019 180.0/200.0 Strangle @ 2.48
TNA
#CoveredCalls – Selling a new batch…
Sold TNA FEB 1 2019 50.00 Calls @ 1.15
TNA
#CoveredCalls – First winner of the year…yaay!
Bought to Close TNA JAN 18 2019 60.00 Calls @ .05 (sold for 2.15)
A TRADE:
ROKU STO 1/4/19 31.0 CALLS @.53 Partially covered.
Jan 2, 2019 New Year
#HappyNewYear – Slow start to the year. Just letting some sales decay…
Jeff You Sparkle
A rousing fireworks display to power us all
to a prosperous peaceful and healthy 2019
Thank you @jeffcp66 and all the Bistroites for
another learning and earning year.
Happy New Year!
Although I haven’t contributed much lately, this is still my favorite site for learning about new strategies and sharing ideas of my own. Thanks to all of you for making tough trading tolerable.
Here’s to great success and many profits in 2019 for all of us!
Options Bistro 