SPX 1-dte

#SPX1dte Unsurprisingly, I got the intraday move exactly backwards. Was planning to sell call spread when index went higher, but instead I’m stuck selling it lower. Sold call side for .50, so now my trade for Monday is:

Sold $SPX Dec 2nd 3095/3115-3165/3185 condors for 1.00.

Expiring: Nov 29th 3135/3115 put spreads, sold Wednesday for .60.

NYSE Tick

TICK is not working today on TOS. Anyone else see this? Nothing after end of day Wednesday.

ROKU Rolled Covered Call

#coveredcalls
$ROKU BTC 11/29 165 call and STO 12/6 167.50 call at 2.62 credit

LK Rolled Puts

#shortputs
$LK BTC 11/29 31.50 puts and STO 12/6 31.50 puts at added .77 credit

SPX 1-dte

#SPX1dte Sold $SPX Dec 2nd 3115/3095 put spreads for .50, IV 6.19%, SPX 3147.

Will sell call side on a move higher.

Gartman

He is going to stop publishing his letter at the end of this year.We need to find another leading indicator.

Something that might stir up the markets a little…

https://www.cnbc.com/2019/11/27/trump-signs-bill-backing-hong-kong-protesters-into-law-in-spite-of-beijings-objections.html

SPX 1 DTE /

#spx1dte
$SPX STO 11/29 3110/3130/3170/3190 for .80. Thank you for the concept @jeffcp66. Sold after the bell.

Happy Turkey to all!!

Happy Turkey to all!!

Happy Thanksgiving

Much friendship and wonderful advice is on this site. A tribute to the founder @jeffcp66.

You are all appreciated very much.

SPX roll

#SPX 1-dte . Buying to close $SPX Nov 29th 3165/3185 call spreads for .80. Condors sold for .85 this morning, so (hopefully) the .05 profit will cover commissions. If it doesn’t fill, I will have to up my bid.

#ReverseRoll Sold to Open Nov 29th 3135/3115 put spreads for .60.

#spx1dte

#spycraft The low volume march…

#spycraft

The low volume march to infinity has triggered my adjustment level so I closed the CCS side of the 12/13 318/322 for a 0.83 loss. I am hoping for a pull back on Monday when people return but hoping has never made me any money.

Left the put side open, will close when it is down to 0.05 then loss will only be 0.20.

Following the new rules I opened the PCS side for 12/20 at the 304/301 strikes for 0.24 credit. Will stay one sided until there is a definitive change/reversal.

A rapid flush down I would back ratio.

Happy Thanksgiving Bistro’ers!

DIS

STO January 17, 145 puts at 2.11

ADSK closed

#Earnings Sold to close $ADSK Nov29/Dec06 170 #DoubleCalendar for .92. Bought for .65 yesterday.

Started the morning nicely, but looks like a runner.

DE

BTC the put side of the strangle at .75 cents. I will let the December 20, 195 call just expire.

SPX 1-dte

#SPX1dte Sold $SPX Nov 29th 3090/3110-3165/3185 condor for .85, IV 6.42%, SPX 3144.

Trying something different: selling in the morning so I can grab some premium before it evaporates. I don’t expect SPX to move too much in the next day and a half of holiday trading.

NUGT Puts Keep Rolling / BA ROKU Closed Early / TSLA BECS

#shortputs
$NUGT BTC 11/29 28 puts and STO 12/6 28 puts for added .35 credit.

#bups
$BA BTC 12/20 315/325 BUPS at .20. STO at 2.25 on 10/30
$ROKU BTC 12/20 105/115 BUPS at .20. STO at 2.80 on 11/7

#becs
$TSLA STO 12/20 360/370 BECS at 1.70

No SPX

Not enough premium so I did not sell #SPX1dte.

VMW

#Earning Reverse IC expiration 11/29/2019
buy 177.5 call sell 182.5 call at 0.75 filled
buy 155 put sell 152.5 put at 0.50 but not filled yet changed to
buy 155 put sell 150 put at 0.85 filled

#fallingknife DLTR down 16%

#fallingknife
DLTR down 16%

ADSK dub cal

#Earnings Bought to Open $ADSK Nov29/Dec06 170 #DoubleCalendar for .65. Had the order on for a couple hours… just filled on one. As has been the case with these trades, they can fill slowly as we near the bell.

Lower probability as ADSK has moved on earnings a fair amount. But most recent quarters has below average moves.

VMW reports tonight

#Earnings $VMW reports tonight. Below are details on earnings one-day moves over the last 12 quarters.

Aug. 22, 2019 AC -9.94%
May 30, 2019 AC -11.53% Biggest DOWN
Feb. 28, 2019 AC +3.71%
Nov. 29, 2018 AC +3.62%
Aug. 23, 2018 AC -2.19%
May 31, 2018 AC +6.14% Biggest UP
March 1, 2018 AC -5.91%
Nov. 30, 2017 AC +3.60%
Aug. 24, 2017 AC +1.89%
June 1, 2017 AC -2.09%
Jan. 26, 2017 AC +3.49%
Oct. 26, 2016 AC +3.35%

Avg (+ or -) 4.79%
Bias -0.49%, negative bias on earnings.

With stock at 167.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 156.28 to 177.72
Based on AVERAGE one-day move over last 12 quarters: 159.00 to 175.00
sed on MAXIMUM one-day move over last 12 Q’s (-11.5%): 147.74 to 186.26
Based on UP max only (+6.1%): 177.25

Open to requests for other symbols.

#earnings DE Sold Dec. 20,…

#earnings DE

Sold Dec. 20, 160/195 strangle for 1.34.
Thanks for the data Jeff.

HD closed

#Earnings Sold $HD stock for 220.50.

Nov22/Nov29 237.5 #DoubleCalendar bought for .82 on monday Nov 18th
#Assignment on stock for 237.50 on the 21st
Sold Nov 29th long puts for 18.20 on the 21st
Sold stock today for 220.50

Profit on trade: +0.38

Trades can work even when they initially fail… if you can carry the stock and hold it through dips. Not advised during a correction but it worked in this environment.

DE earnings analysis

#Earnings $DE reports tonight. Below are details on earnings one-day moves over the last 12 quarters.

Aug. 16, 2019 BO +3.84%
May 17, 2019 BO -7.65%Biggest DOWN
Feb. 15, 2019 BO -2.11%
Nov. 21, 2018 BO +2.42%
Aug. 17, 2018 BO +2.35%
May 18, 2018 BO +5.74%
Feb. 16, 2018 BO +1.57%
Nov. 22, 2017 BO +4.32%
Aug. 18, 2017 BO -5.37%
May 19, 2017 BO +7.30%
Feb. 17, 2017 BO +1.00%
Nov. 23, 2016 BO +11.04% Biggest UP

Avg (+ or -) 4.56%
Bias 2.04%, positive bias on earnings.

With stock at 177.50 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 169.40 to 185.60
Based on AVERAGE one-day move over last 12 quarters: 169.41 to 185.59
sed on MAXIMUM one-day move over last 12 Q’s (11.0%): 157.90 to 197.10
Based on DOWN max only (-7.7%): 163.92

Open to requests for other symbols.

#shortputs #coveredcalls TRTN Bought to…

#shortputs #coveredcalls TRTN

Bought to close aDec. 20, 35 put for .25, sold Nov. 21 for .50
Bought a March 20, 40 covered call for 36.93. If I hold it that long will pick up 2 .50 dividends. I may collar this but the only put volume in the next 3 months is the one I bought back.
Current stock price is 38.18.

FLT

Breaking out so STO 2, January 290 puts at 5.70 and BTO 1 contract of the 310 call at 7.90

PANW

STO January 200 puts at 1.55

ISRG

BTC December 20 505 put at .45 cents, sold at 4.40

BOOT

STO January 17, 35 puts at 1.05

GNRC

STO January 17, 90 puts at 1.10

ADSK earnings analysis

#Earnings $ADSK reports tonight. Below are details on earnings one-day moves over the last 12 quarters.

Aug. 27, 2019 AC -6.74%
May 23, 2019 AC -4.90%
Feb. 28, 2019 AC -1.98%
Nov. 20, 2018 AC +9.74%
Aug. 23, 2018 AC +15.32% Biggest UP
May 24, 2018 AC -4.44%
March 6, 2018 AC +14.87%
Nov. 28, 2017 AC -15.85% Biggest DOWN
Aug. 24, 2017 AC +3.94%
May 18, 2017 AC +14.69%
March 2, 2017 AC -2.29%
Nov. 29, 2016 AC -3.52%

Avg (+ or -) 8.19%
Bias 1.57%, positive bias on earnings.

With stock at 250.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 156.50 to 183.50
Based on AVERAGE one-day move over last 12 quarters: 156.08 to 183.92
sed on MAXIMUM one-day move over last 12 Q’s (15.9%): 143.06 to 196.95
Based on UP max only (+15.3%): 196.04

Open to requests for other symbols.

BBY closed

#Earnings Sold ro close $BBY Nov29/Dec06 74 #DoubleCalendar for .30. Bought yesterday for .54. My bad streak on earnings continues, but not painful today.

PANW

#ShortPuts – A little early on this. Selling just below the 50ma and 200ma support. Let’s see if it holds…

Sold PANW DEC 20 2019 220.0 Put @ 3.50

UVXY

#ShortCalls – Bought to Close UVXY DEC 6 2019 24.0 Calls @ .04 (sold for .70)

ANF closed

#Earnings Sold to close $ANF Nov 29th 16/16.5 strangles for .926. Bought yesterday for 1.99.

Didn’t get the move so worked aggressively to unload at the open when volatility still high, rather than wait to see if the stock will move enough to become profitable.

The move came in BBY, which is where I didn’t want it.

Holiday schedule

Stock market open full day Wednesday, closed Thursday, then half-day Friday (closes at 1pm ET).

#spycraft v 6.1 12/13 291/295…

#spycraft v 6.1 12/13 291/295 and 318/322 IC

Have not added any the last 2 weeks. I am trying a full cycle before adding additional spreads. But what I have so far has proven what almost always happens with these. They are challenged in 1 direction only, in this case the upside. I have a profit but negligible ($49 on a 5 lot vs. 315 at expiration). The short strike is 318 for the 12/13 expiration.

So this is the decision point. Do I close the short calls and leave the puts open? Do I back ratio? Do I butterfly and cap losses to the upside? Or do I just sit on my hands and see if we eventually stay in the range and close for near full profit.

Here is my thought process. We can certainly keep grinding higher but if I back ratio and it stalls or reverses I basically lock in a loss at that point. If I close I lose on the calls but still have the puts making a few extra $. If I butterfly same as the back ratio, basically lock in a loss to one side.

So since I have not breached the short strike I will let it sit and decay and hope for flat or a little pull back. Then might be able to close early for a small profit.

But additional rules to putting these on, I will start them only one sided, then add the other side only at a definitive reversal. In the indexes the credit is generally higher on the put side and father OTM as well. That is something that has been persistent since 1987 black Monday (or was it Friday?). So there is more room and time to adjust to the put side anyway. Plus the market goes down faster than up so at that point a back ratio would make sense and likely give you a nice directional pop to the account.

Also will probably be going shorter time frame, looks like 10-21 DTE may be ideal as opposed to 28-45 DTE. I know the TT research shows 45 DTE ideal and it seems to be for naked options. But with spreads the decay is soooooooo slow it gives the market too much time to move.

Will update if I do anything or if it expires. Then will try the ladder one sided and will post as I open/close.

Anyone else has any ideas feel free to share? I know these can work, the math and probabilities are there, just need to avoid the big losses or convert losing trades to winners or flat.

ULTA

#CoveredCalls – A couple more. One closed and one stopped out. Earnings next week…

Bought to Close ULTA NOV 29 2019 242.5 Call @ .15 (sold for 2.00)
Bought to Close ULTA NOV 29 2019 232.5 Call @ 2.00 (sold for 2.40)

NUGT closed

#ContangoETFs BTC $NUGT Jan 17th 40 call for .25. Sold for 2.10 on March 25th. Not sure if that long wait was worth it. Now flat in NUGT.

BBY dub cal

#Earnings Bought to Open $BBY Nov29/Dec06 74 #DoubleCalendar for .50. Partial fill so far, not raising my price.

FLT

STO January 290 put at 5.70,

This is an idea from SMM.

#earnings #doublecalendar BBY Sold a…

#earnings #doublecalendar BBY

Sold a Dec. 6/Dec. 13 73.50 double calendar for .44

ANF earnings analysis & trade

#Earnings $ANF reports tomorrow morning. Below are details on earnings one-day moves over the last 12 quarters.

Aug. 29, 2019 BO -15.09%
May 29, 2019 BO -26.46% Biggest DOWN
March 6, 2019 BO +20.37%
Nov. 29, 2018 BO +20.91%
Aug. 30, 2018 BO -17.15%
June 1, 2018 BO -8.72%
March 7, 2018 BO +11.90%
Nov. 17, 2017 BO +23.90% Biggest UP
Aug. 24, 2017 BO +17.06%
May 25, 2017 BO +8.99%
March 2, 2017 BO +13.94%
Nov. 18, 2016 BO -13.76%

Avg (+ or -) 16.52%
Bias 2.99%, positive bias on earnings.

With stock at 16.10 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 13.95 to 18.25
Based on AVERAGE one-day move over last 12 quarters: 13.44 to 18.76
sed on MAXIMUM one-day move over last 12 Q’s (26.5%): 11.84 to 20.36
Based on UP max only (+23.9%): 19.95

Open to requests for other symbols.

BBY earnings analysis

#Earnings $BBY reports tomorrow morning. Below are details on earnings one-day moves over the last 12 quarters.

Aug. 29, 2019 BO -7.98%
May 23, 2019 BO -4.84%
Feb. 27, 2019 BO +14.11%
Nov. 20, 2018 BO +2.13%
Aug. 28, 2018 BO -5.00%
May 24, 2018 BO -6.64%
March 1, 2018 BO +3.94%
Nov. 16, 2017 BO -3.57%
Aug. 29, 2017 BO -11.92% Biggest DOWN
May 25, 2017 BO +21.47% Biggest UP
March 1, 2017 BO -4.50%
Nov. 17, 2016 BO +13.69%

Avg (+ or -) 8.32%
Bias 0.91%, positive bias on earnings.

With stock at 74.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 68.87 to 79.13
Based on AVERAGE one-day move over last 12 quarters: 67.85 to 80.15
sed on MAXIMUM one-day move over last 12 Q’s (21.5%): 58.11 to 89.89
Based on DOWN max only (-11.9%): 65.18

Open to requests for other symbols.

PANW earnings analysis

#Earnings $PANW reports tonight. Below are details on earnings one-day moves over the last 12 quarters.

Sept. 4, 2019 AC +5.76%
May 29, 2019 AC -5.11%
Feb. 26, 2019 AC +8.20%
Nov. 29, 2018 AC -1.76%
Sept. 6, 2018 AC +3.28%
June 4, 2018 BO -0.52%
Feb. 26, 2018 AC +2.31%
Nov. 20, 2017 AC +4.82%
Aug. 31, 2017 AC +10.53%
May 31, 2017 AC +17.20% Biggest UP
Feb. 28, 2017 AC -24.15% Biggest DOWN
Nov. 21, 2016 AC -13.24%

Avg (+ or -) 8.07%
Bias 0.61%, slight positive bias on earnings.

With stock at 250.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 234.96 to 265.04
Based on AVERAGE one-day move over last 12 quarters: 229.82 to 270.18
sed on MAXIMUM one-day move over last 12 Q’s (24.2%): 189.63 to 310.38
Based on UP max only (+17.2%): 293.00

Open to requests for other symbols.

SPX stopped

#SPX1dte Bought to close $SPX Nov 25th 3130 calls for 1.85. Condors sold Friday for .85.

NOW

BTC $NOW 20-Dec 230/240 #BuPS @0.25. STO 8/15, with multiple adjustments. 5.53 loss.

CMG

BTC $CMG Nov 29 740/750 #BuPS @0.15. Was STO 11/22 @1.2.

Keeping an eye on Call side ($CMG Nov 29 795/805).

LABU

#CoveredCalls – Last 100 shares that I had been working with got called away early over the weekend at below my cost basis. Was hoping for a down move this morning to get back in but since nothing ever goes down anymore I’ll sell based on the breakout above the 200ma.

Stock called away at 35.50 (basis 46.50)

100 shares called away and selling two puts to possibly get the stock back. If not, keep selling the puts.

Sold LABU DEC 20 2019 47.5 Puts @ 2.20

ULTA

#CoveredCalls – This week’s double sales look safe so starting the earnings position a little early. I’ll adjust it down next week if needed.

Sold ULTA DEC 6 2019 240.0 Call @ 5.11

UVXY

#ShortPuts #ShortCalls #BearCallSpreads – Making some adjustments. Rolling short puts out and down and selling hard against them. If we get close to another reverse split I’ll roll ’em out to 2022 and sell against them for a couple years.

Shorter term:

Bought to Close UVXY NOV 29 2019 20.0 Calls @ .02 (sold for .70)
Sold UVXY DEC 13 2019 17.0 Calls @ .67

Longer term:

Rolled UVXY DEC 20 2019 25.0 Puts to MAR 20 2020 23.0 Puts @ .11 debit
Rolled UVXY DEC 20 2019 23.0 Puts to MAR 20 2020 21.0 Puts @ .12 credit

Sold UVXY MAR 20 2020 20.0/30.0 Bear Call Spreads @ 1.17 to finance the next big roll if needed.

Final VXX closed

#VXXgame Sold to close $VXX Jan 17th 20 puts for 4.00. Bought between Jan 22 and Aug 27 for avg price of 1.30. Sold four batches so far at 2.65, 3.00, 3.25, 3.50, and 4.00.

My research over the history of VXX and UVXY show that this trade usually works. Of course, the first year I had a robust position (last year), it failed as the market went straight down from September until Dec 24th. But glad it worked out this time.

On next pullback I will start buying VXX and UVXY 20 puts to sell next fall. A reverse split will really help this work better, but not sure if we’ll get low enough before a pullback comes.

Calendar bust

#Earnings Been striking out on recent #DoubleCalendar trades…

Paid .01 to close put calendar on $INTU, bought yesterday for 1.35. This one is a disappointment as it is more expensive than most of these trades, and these higher priced stocks rarely result in a full loss. The morning looked promising but it spent the whole day sinking. It does, however, have a better chance than most of producing some return on the long 272.5 long call lottery ticket next week.

$HD, sold the long puts yesterday, expecting some bounce, but it fell further. So holding the stock for next week.

SPX 1-dte

#SPX1dte Sold to Open $SPX Nov 25th 3055/3075-3130/3150 condors for .85, IV: 5.90%, SPX: 3108.

Expiring: Nov 22nd 3060/3070-3130/3140, sold yesterday for .45.

Econ Calendar for week of 11/25/19

#GDP numbers on Wednesday morning
Screen Shot 2019-11-22 at 10.59.31 AM
Screen Shot 2019-11-22 at 10.59.31 AM

Link to Calendar: https://us.econoday.com/byweek.asp?day=25&month=11&year=2019&cust=us&lid=0

PTON / SPLK

OX $PTON 11/22 27p #Shortputs
STO $PTON 11/29 27.5p @.35 #Shortputs Replacing above. Looking to add to long stock

OX $SPLK 11/22 105/115 #BuPS STO 11/21 @1.05 – Thanks for info/idea @Jeff and @Fuzzball #Earnings

#shortstrangles #shortstraddles ROST LB #tastytradefollow…

#shortstrangles #shortstraddles ROST LB
#tastytradefollow
ROST sold Jan. 17, 100/115 for 2.40
JWN sold Jan. 17, 32.50/40 for 2.19
LB sold Jan. 17, 17.50 straddle for 2.65

ROKU put spread

Sold $ROKU 12/20 145/135 bull put spread @ 2.45. Delta of short puts 28.

#bups

ROKU Calls Rolled

#coveredcalls
$ROKU BTC 11/22 162.5 calls at .29 STO at 2.10 and STO 11/29 165 calls for 2.49.

ZM Puts Rolled / PLAN Put / Closed TWTR Put / SPLK YES!

#shortputs
$ZM BTC 12/6 72 call and STO 12/27 73 call at .30 added credit. Rolled three times at 1.95 credit and gained $4.5
if called away. Stock upgraded by somebody with $90 target today.

$PLAN STO 12/20 50 put at 1.75. Part of Covered strangle with 55 call

$TWTR BTC 11/22 32 put at 2.10. STO at 2.81

#earnings
Expire today
$SPLK 115 put STO at 1.25. Thank you @fuzzballl

SQ

#CoveredCalls – An old busted earnings trade almost back to even…

Rolled SQ NOV 22 2019 63.5 Calls to DEC 13 2019 64.5 Calls @ even

SHOP

#CoveredCalls #ShortPuts – Trading profitable stock for a short put. Gets the cash back into the sweep account to draw a tiny bit of interest (around 1.6% for now).

Stock will be called away @ 297.50 (basis 294.85)
Sold SHOP DEC 20 2019 280.0 Put @ 3.90 (selling below the 200ma and below recent lows)

SPLK Earnings

#Earnings #JadeLizards – Another big up move on a Lizard. No harm no foul. Little dip right at the open got me out of the call spread for 1.75. Already up to 2.00 now.

Bought to Close SPLK NOV 22 2019 115.0/127.0/129.0 Jade Lizards @ 1.78 (sold for 2.16)

Charles Schwab in advanced talks to buy TD Ameritrade: source – Reuters

Charles Schwab Corp is in advanced talks to acquire TD Ameritrade Holding Corp , a person familiar with the matter said on Thursday, in a deal that could exceed $26 billion and combine the two largest U.S. discount brokerages.
— Read on www.reuters.com/article/us-td-ameritrade-m-a-charles-schwab-idUSKBN1XV16S

HD assignment

#Earnings I was assigned $HD shares at 237.50 last night. Today, I sold the Nov 29th long 237.5 puts for 18.20. Plan to sell the stock on next move higher… hopefully for about 220.00 which would make the trade almost break-even.

Original trade: $HD Nov22/Nov29 237.5 #DoubleCalendar for .82 on Monday.

Looks like the INTU trade has a better chance of working.

CMG

#BurritoRolls?

Rolled $CMG 11/22 740/750 #BuPS // 11/29 @1.00 Was STO 11/19 @0.75
STO $CMG 11/29 795/805 #BeCS @1.16
BTC $CMG 11/22 792.5/802.5 #BeCS @0.20 Was STO 11/19 @1.0

SPX 1-dte

#SPX1dte Sold to Open $SPX 3060/3070-3130/3140 condors for .45. Ten-wide, double-sized position.
IV: 8.80%, SPX 3106

#shortputs TRTN Sold a Dec….

#shortputs TRTN

Sold a Dec. 20, 35 put for .50.

ULTA

#CoveredCalls – Bought to Close ULTA NOV 22 2019 247.5 Call @ .05 (sold for 2.35)

CRM Short

Did anyone catch Benioff’s interview two nights ago w/ Cramer? I found it troubling. I’ve always been a Benioff fan, but I’m seeing that he’s maybe losing focus. He spotlighted a stupid “Einstein Doll” that is supposed to talk and answer questions “you can buy it on Amazon”….huh? The doll didn’t work, it was an awkward moment. He seems to be losing touch w/ any kind of shareholder focus. I put a short on yesterday by selling shares and buying a protective call. I sold shares at 163.25, the call was an expensive January 165, so I need a sharp move down to make money, but it was in the 140’s not too long ago. Earnings coming up. Curious if anyone else saw it, if it hit you differently.
Sue

#longcalls TWTR is squeezing here…

#longcalls TWTR is squeezing here and starting to climb out after a month long beating. Long Jan 30 Calls @ 1.69 as a spec position.

SPLK Earnings

#ShortPuts #Earnings – I’ll take a shot just outside the expected move down below the 200ma and 50ma near recent lows.

Sold SPLK NOV 22 2019 115.0 Puts @ 1.25

#SueCollar new TGT I needed…

#SueCollar new TGT

I needed a new position in one of my accounts and went back to the well on TGT. The vols and spreads are bumping around big time this morning on TGT, I probably should have waited before locking this in. But I saw favorable vol spreads so grabbed it. Jan 3rd opened up on TGT, but the spreads and liquidity were really poor, so I went with a Dec 27/Dec 13 starting setup.
I’m spending a lot of time now looking at the volatilities on the chain for the setup, and comparing them to realized volatility. The most expensive part of this strategy is buying puts, if you can buy puts “cheap” relative to realized volatility it should help the overall success (that’s also why I’m now comparing put vol to the call vol being sold–trying to eek out a bit more edge). As you know, OTM puts have a higher volatility, and that vol drops as you approach ATM. It’s typically opposite on the call side of the chain (except for tickers with upside danger like Vix and Gold)–ITM calls have a higher vol than OTM calls. It dawned on me recently that tightening the vol spread between the short call/long put strikes would further tighten risk on these. It does in fact lower the delta even more, which is great risk control, but further restrains the upside in grind-or-melt up conditions. That’s the trade off. I’m looking to keep the vol spread now at 3 or less points. The put buy continues to be a balancing act though between volatility and price….since in normal market conditions it’s throw-away insurance. So I don’t want to overpay on price just to get a lower volatility.

If you use TOS, you’ll see the option chain has a different vol than the analyze tab. I keep wanting to ask the trade desk for an explanation on that, but I’ve chosen to use the analyze tab volatility for my record keeping.

TGT Entry: Starting P/L in this account for TGT is zero

BOT 300 shares @ 127.08
BOT 3 Dec 13 121 put @ .95, at the time of purchase vol was 22.37%, 90-day realized vol is 43.1%
SOLD 3 Dec 12 126 call @ 4.00, vol was 24.16%
This was a vol inversion that I grabbed, usually the put vol is higher than the call vol
You can see I’ve sold well in the money calls to get a higher volatility.
Max risk at the onset is $909.00

ISRG

#ShortPuts – Back in this one selling outside the expected move. Below the 50ma and right at the 200ma.

Sold ISRG DEC 20 2019 530.0 Put @ 3.80

#bups