TQQQ Puts Closed / TDOC LVGO Puts / MRNA Calls

#shortputs
$TQQQ BTC 8/14 80 put at .05. STO 7/28 at 1.10. Thank you @jsd501
$TDOC STO 9/4 165 put at 4.30 Thank you @fuzzballl
$LVGO STO 9/4 100 put at 2.00. Just what the @fuzzballl ordered.

#coveredcalls
$MRNA STO 8/14 75 calls at 1.05

Markets

Why is it still rising?

Earnings Season Shocker: FAAMG Earnings Grew By 2% While EPS For The Other 495 S&P Companies Plunged 38%.
Meanwhile the carnage among small caps was unprecedented with Russell 2000 EPS plunging by 97%.

“Goldman, which over the weekend turned incrementally more bullish on the economy and hiked its GDP forecast as it now expects that a covid vaccine will be discovered and widely distributed in Q1 2021, resulting in what Goldman believes will be a sharp jump in consumption in the first half of next year (whether that actually happens in a country where more than half refuse to get vaccinated is a different story completely), has done a post-mortem on Q2 earnings season and also found some more “good news.”

First, after expecting a 60% plunge in EPS in Q2, Goldman’s David Kostin was delighted to report that S&P 500 EPS declined by “only” 34% year/year, well above both consensus expectations for a -45% decline, and Goldman’s own forecast of a nearly double drop.”

#vixindicator

KLAC

#IronCondor – Sold KLAC SEP 18 2020 230 / 220 – 175 /165 Iron Condor @ $3.78. KLAC currently trading @ $203.

TDOC

STO September 4, 150/300 strangle at 3.50

TDOC

#ShortPuts – Same as LVGO. Out another week and 10 points lower than original sale…

Sold TDOC SEP 04 2020 165.0 Put @ 4.30

SPX trades

#SPX7dteLong Bought to Open $SPX Aug 17th 3335/3355-3365/3385 condors for 16.05, with SPX at 3360.

Expiring: Aug 10th 3300/3320 call spreads for max credit of 20.00. Condors bought last Monday for 16.65.

#SPX1dte Expiring: Aug 10th 3255/3275-3395/3415 condors, sold Friday for 1.10

SEDG

#UnbalancedButterfly – Sold SEDG 1 x 3 x 2 SEP 18 2020 210 / 200 / 190 Unbalanced Put Butterfly @ 2.68 credit.

A starter position on the basis I will be wrong until proven otherwise, whereupon I will add to the position.

It’s useful to look at the Unbalanced Butterfly as the combination of a 1 x long put spread and a 2 x short put spread.

Adjustments down the road: all the risk is to the downside. If SEDG drops below $200 then I cash out the long put spread and use those funds to roll the 2 x short put spread down and out.

LVGO

#ShortPuts – Adding a week further out and 10 points lower than first sale. Still highest IV rank on my main list. A lot of LABU getting ready to close so replacing with this. Doctors or drugs? Close enough for medical exposure. LOL

Sold LVGO SEP 4 2020 100.0 Put @ 2.05

VXX new diagonal

Bought to open 06/18/2021 10.0 Puts / Sold VXX 08/14/2020 26.0 Puts @ 0.14 Credit with VXX at 26.05.
The long has 312 Days to Expiration so the short can be rolled a few times 🙂

NFLX

#ShortStrangles – Sold NFLX SEP 4 2020 425.0/575.0 Strangle @ 4.75

TRADES:

MS BTO STOCK @50.58
MS STO 8/14/20 51.0 CALLS @.53
MGM STO 8/14/20 23.0 CALLS @.56

ADS

Sold ADS 08/14/2020 51.0 Covered Calls @ 0.25 replacing similar calls from last week
Sold ADS 08/14/2020 52.0 Diagonal Call @ 0.30 replacing a similar call from last week

Assigned on SDC stock.


On Friday SDC stock closed above our strike price of $8.50 resulting in stock being assigned. Purchased the stock on Jul 13. Adjusted our option position on a weekly basis. Diagonal down from $9 to $8.50 on Jul 17 and Calendar rolls on Jul 24, 31 and Aug 7.

This image has an empty alt attribute; its file name is screen-shot-2020-08-10-at-7.37.17-am.png
This image has an empty alt attribute; its file name is screen-shot-2020-08-10-at-7.34.54-am.png
SDC offers excellent option premiums. It can be difficult to get filled. We were able to over $.20 a week (3-4%) when we did the calendar rolls.

Covered Call on PTON Assigned, Profit $6,090 in 19 Days, 9.6% ROI or 184% Annualized

On Friday PTON stock closed above our strike price of $66 and stock was assigned. We purchased the stock on July 20. Calendar roll on 7/24 and Diagonal Roll up from $63.50 to $66 on Jul 31. We had an order in for a diagonal roll up on Aug 7 but didn’t get filled resulting in the assignment. Intend to establish a new covered call position in PTON today. 

Stock price dropped early in the position (blue line) with the profit from the option offsetting. Stock price started improving 7/24. Option premiums on PTON are excellent due to volatility. Options added an incremental $3,560 in profit to the position.

#coveredcalls-2, #pton

Covered Call on ISRG Assigned – Profit of $6,944 in 67 Days, 12% ROI or 66% Annualized

On Friday ISRG closed above strike price of $675 resulting in assignment of the shares. Shares were originally purchased on June 1. Over the 67 days we held the stock we adjusted our position on a weekly basis as shown in the table below. 

Rapid rise in stock price between July 13 and 20 created a scenario where it would have been more profitable to just purchase the stock versus the covered call strategy. Can’t complain about a 12% return in 66 days……but it could have been higher.

#coveredcalls-2