SPY and learning put selling (weekend reading)

First off, I apologize for the length of this but it might be entertaining if we get a long, wet, locked down 3 day weekend. I’ve got a friend who’s still about 4 years from retirement but has a sizable nest egg (1.2 million). He was interested in maybe learning a little bit about the option market in hopes that there was something he could do in retirement to live off of safely but not have to watch the market every single day. I came up with a plan (3 parts) that serves 2 purposes. It lets him learn option basics as well as experiment to see if it brings in enough to live on and be within his risk tolerance. I’ve been paper trading this for a month now (TDA will turn on live quotes in your paper account if you ask them). It’s been a choppy market which is nice and the plan is going about how I imagined. The true test will be the next big panic selloff but based on what this last selloff was like I think it will do fine.

Any thoughts, ideas, or comments are welcome. I’ll post a current screenshot at the bottom of where we stand so far and break it up into 3 or 4 responses down below. I’m hoping to continue this for the foreseeable future to really get a longer term feel for it. Here we go!


SPY New diagonal

Bought to open 1 SPY 09/30/2020 335.0 Call / Sold 1 SPY 07/10/2020 312.0 Call @ 0.12 Credit
I’m thinking that the market is again overbought with the SPY at 311.75.

The long has 91 DTE and the short has 9 DTE and is out of the money

SPX 7-dte

#SPX7dteLong Bought to Open $SPX July 8th 3100/3120-3130/3150 condors for 17.10, with SPX at 3124.

Expiring: July 1st 3070/3090 call spreads for 20.00. Sold put side this morning for .80.
July 2nd call side sold this morning for 18.50. Not filled on attempts to sell put side; will see if high IV around the jobs report in the morning can get me some premium.

#jobs, #spx1dte


Rolled OSTK Jul-17-2020 $27.5 #CoveredCalls // Aug-21-2020 $30’s for $1 Credit and 2.50 better strike. Basis $17.93.

TQQQ Put Closed

$TQQQ BTC 7/17 45 put at .10. Thank you @jsd501

Rolling COST

With $COST breaking above the 50 day moving average I’m extending my stock acquisition position (short 7/17 295 puts) by rolling it to 8/21 295 puts for 3.80 credit. Total premium now 7.95 so breakeven if assigned has dropped to around 287. Option delta 33. Earnings not expected until after Aug opex.


#ShortPuts – Just a couple today. Most of my positions are sitting out in the July monthly expiation. Decaying nicely…

Bought to Close ROKU JUL 2 2020 108.0 Put @ .05 (sold for 2.50)
Sold UVXY JUL 10 2020 29.0 Puts @ 1.40


Toyota just announced a 27% drop in June sales vs last year.

Tesla Surpasses Toyota, Becomes World’s Most Valuable Automaker

Up 50 to 1130

#CrazyTown again


IATA – May Passenger Demand Shows Slight Improvement IATA announced that passenger demand in May (measured in revenue passenger kilometers or RPKs), dropped 91.3% compared to May 2019.

SPY Rolls

Bought to close 07/01/2020 304.0 Call / Sold 07/08/2020 306.0 Call @ 0.32 Credit plus a 2 point bump in the short strike.
Bought to close 07/01/2020 303.0 Call / Sold 07/08/2020 305.0 Call @ 0.30 Credit plus a 2 point bump in the short strike.


STO $LULU 275/285 Jul-17-2020 #BUPS @1.05
Holding Lulu Jul-02-2020 270/280 #BUPS – intending to let it expire tomorrow.
Holding Lulu Jul-10-2020 265/275 #BUPS

SPX 7-dte

#SPX7dte Sold to close $SPX July 1st 3060/3040 put spreads for .80. Looking for 3070/3090 call side to expire at 20.00. Condors bought for 18.00 last Wednesday.

Sold to close $SPX July 2nd 3015/3035 call spreads for 18.50. Looking to get a dollar or more for put side. Condors bought for 18.30 last Friday.