WBA

Rolled WBA March 20 52.5 call out to April 17 52.5 call for 2.26 credit with stock at 47.51

#coveredcall

#shortstrangles TSLA It was a…

#shortstrangles TSLA

It was a long time ago now I had an earnings strangle in TSLA. After rolling and inverting I have an April 17, inverted 300/450 strangle. It was just a couple weeks ago I was down about 60k on this. As the market has gone down, the short 300 call has been quite the hedge for my account. Currently, I’m down about 12k on the position which looks really good tonight. If someone only knew what would happen next, darn, no friends in the Senate.

Options Expiration

CPRI March 20,28 covered call
DAL March 20, 20 short put
GPRO March 20, 4 covered call
LB March 20, 25 covered call
M March 20, 15 covered call
MRO March 20, 4 covered call
PRU March 20, 47.50 covered call
SBUX March 20, 85 covered call
UBER March 20, 28 covered call
X March 20, 10 covered call
VXX March 20 long pt spread 17.21 looked good at the time, a loss

VIX was down today, and other thoughts

With the markets off another 4+% I found it interesting that the VIX was down. I remember so many days in the last few months when the opposite was true (markets up/VIX up) and it signaled caution (probably should have sold everything then right? LOL). Today, it could be a function of it having been so high previously, but what is high? We’ve never been through anything like this before. Still it’s interesting that on a day like today, you would have expected another spike in the VIX but it was actually down over 8% (albeit even quite a bit lower earlier in the day). It could be the down action is more orderly without as much panic, and could that signal we’re near some kind of low or bottom?

I also looked at how backwardation has been the last 2 weeks. Of course we’ve been deep in it for some time but the % backwardation has been trending down:

3/9 18.37%
3/10 16.86%
3/11 16.77%
3/12 21.40%
3/13 17.83%
3/16 18.55%
3/17 10.75%
3/18 14.97%
3/19 11.05%
3/20 8.15%

A flattening for sure, but the real important curve flattening is with new Covid-19 cases/deaths. We’re in the thick of the explosion in new cases now mostly because of the increased testing. But I remain optimistic that these extreme measures will pay off very soon in a deceleration of new cases (that would be a negative second derivative for all you calculus experts). Combine that with unprecedented speed through the normal FDA red tape to get medications to severely ill patients and we could be looking at slowing growth in cases on the front end and a reduction of fatality % on the back end. I believe we will absolutely beat this thing even though it seems overwhelming to think about. The panic and fear will hopefully abate here (I’m talking about just out there, not necessarily in the financial markets). I wish people would watch less TV and sensationalized websites/social media. It’s feeding the panic for viewers and clicks. I’m in the media business so I understand they make a lot of money during times like this but man it feels like it’s such a disservice to people to go over the top with fear tactics for ratings. Look what’s happening in Washington DC. Did you ever think that there would be so much love between Democrats and Republicans? I hardly recognize these people. For the most part everyone is working together and that’s as it should be and unimaginable even 2 months ago. And I think that has been a great thing for the country to see. But…(and it will never happen because of the nature of the beast) I also wish the media would be more responsible in their reporting and be sensitive to the fact that so many people blindly listen to what is reported and behave and act accordingly. I can’t tell you how many texts and other messages I get with the craziest things someone just “heard about”, or someone texted them a meme saying something insane. People are passing these things along without doing the simplest due diligence and it’s spreading incredible anxiety and that has made this crisis 10 times worse in my opinion.

What we’re going through is bad and difficult for sure, but it is being exacerbated by panic and fear. Let’s try to appreciate the things we do have right now and one day (hopefully sooner than we think) we’ll look back on this time in our lives and say “Can you believe what we went through?”

Peace, serenity and love to you all, my Bistro family.

OptionsExpiration

AAL 03/20/2020 17.00 Covered Call
ADS 03/20/2020 55.00 Covered Calls
CCL 03/20/2020 20.00 Covered Call
CMA 03/20/2020 40.00 Covered Call
DUK 03/20/2020 75.00 Covered Call
GUSH 03/20/2020 1.00 Covered Calls
HAL 03/20/2020 6.00 Covered Call
HFC 03/20/2020 24.00 Covered Call
HFC 03/20/2020 26.50 Covered Call
IVZ 03/20/2020 12.00 Covered Call
KSS 03/20/2020 20.00 Covered Call
KSS 03/20/2020 30.00 Covered Call
PRU 03/20/2020 50.00 Covered Call
RCL 03/20/2020 36.00 Covered Call
OXY 03/20/2020 27.00 Covered Call
UNM 03/20/2020 17.50 Covered Call
VIAC 03/20/2020 20.00 Covered Calls
XOP 03/20/2020 11.00 Covered Calls
XOM 03/20/2020 45.00 Covered Call

Assignments
GUSH 1.0 Puts
LNC 30.0 Put
SLB 29.0 Put
VIAC 32.5 Puts

SPXpire

#SPX1dte I didn’t sell a Monday condor because I’ve been bitten twice recently. I also maintain that we still have farther to go down.

Expired this morning: $SPX March 19th 2125/2150-2575/2600 (monthlys) condors, sold for 2.20 Thursday morning.
Expired at the close: $SPX March 20th 2170/2190-2635/2655 condors, sold Thursday afternoon for 1.85.

#assignment

FITB Rollout Covered Call

Bought to close 1 FITB 03/20/2020 13.00 Covered Call / Sold 1 FITB 04/17/2020 14.00 Covered Call @ 0.64 Credit + 1.00 better strike

T Covered Call

Bought 100 T / Sold to Open 1 Contract T Mar 27 2020 28 Covered Call @ Net Debit at $26.80.
The net price equals the 5 year low on the stock.
Annual Dividend Yield 6.68% down here too.

Econ calendar for week of 3/23/20

Screen Shot 2020-03-20 at 11.37.24 AM
Screen Shot 2020-03-20 at 11.37.24 AM

Link to calendar: https://research.investors.com/economic-calendar/

Episode 3 – Podcast Distancing

Showbiz shutdown / Top 5 “Coming Soon” picks / Streaming picks: “Spenser Confidential” & “Hunters” / Corrections / New Music picks – young new artists / Old Music pick – INXS / Guess these songs – random number generation // Find more details and playlists at http://thepickcast.com