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
#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.
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
#SPX1dte Sold to Open $SPX 3060/3070-3130/3140 condors for .45. Ten-wide, double-sized position.
IV: 8.80%, SPX 3106
Sold a Dec. 20, 35 put for .50.
#CoveredCalls – Bought to Close ULTA NOV 22 2019 247.5 Call @ .05 (sold for 2.35)
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.
#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.
#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 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
#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
#Earnings $INTU reports tonight. Below are details on earnings one-day moves over the last 12 quarters.
Aug. 22, 2019 AC +1.09%
May 23, 2019 AC +6.70%
Feb. 21, 2019 AC +6.76% Biggest UP
Nov. 19, 2018 AC -2.03%
Aug. 23, 2018 AC +1.96%
May 22, 2018 AC +2.98%
Feb. 22, 2018 AC -0.18%
Nov. 20, 2017 AC -3.79% Biggest DOWN
Aug. 22, 2017 AC -1.90%
May 23, 2017 AC +6.72%
Feb. 23, 2017 AC +6.05%
Nov. 17, 2016 AC +1.91%
Avg (+ or -) 3.51%
Bias 2.19%, positive bias on earnings.
With stock at 272.50 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 262.33 to 282.67
Based on AVERAGE one-day move over last 12 quarters: 262.95 to 282.05
sed on MAXIMUM one-day move over last 12 Q’s (6.8%): 254.08 to 290.92
Based on DOWN max only (-3.8%): 262.17
Open to requests for other symbols.
#ShortPuts – Back in one of my favorites. Selling well below the 50ma and down near the 200ma. Just going 29 days out…
Sold SOXL DEC 20 2019 165.0 Put @ 3.00
#Earnings $SPLK reports tonight. Below are details on earnings one-day moves over the last 12 quarters.
Aug. 21, 2019 AC -7.83% Biggest DOWN
May 23, 2019 AC -7.32%
Feb. 28, 2019 AC -0.90%
Nov. 29, 2018 AC +9.93%
Aug. 23, 2018 AC +14.81%
May 24, 2018 AC -5.20%
March 1, 2018 AC +9.26%
Nov. 16, 2017 AC +17.89% Biggest UP
Aug. 24, 2017 AC +8.47%
May 25, 2017 AC -6.97%
Feb. 23, 2017 AC -3.23%
Nov. 29, 2016 AC +0.41%
Avg (+ or -) 7.69%
Bias 2.44%, positive bias on earnings.
With stock at 127.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 117.04 to 136.96
Based on AVERAGE one-day move over last 12 quarters: 117.24 to 136.76
sed on MAXIMUM one-day move over last 12 Q’s (17.9%): 104.28 to 149.72
Based on DOWN max only (-7.8%): 117.06
Open to requests for other symbols.
#ShortPuts #Earnings – Booking now and not taking any chances…
Bought to Close NTES NOV 22 2019 267.5 Put @ .10 (sold for 3.20)