I was watching this all day and it hung around just under the short calls most of the day. On the punch up above the 3520 level, I decided to roll it again keeping short delta with about 15 points of room on the upside. 3 day weekend coming as well so there’s an extra day of decay in there.
Rolled $SPX 9/4 3410/3435//3520/3545 iron condor out to 9/9 3450/3475//3540/3565 for .27 credit.
#ShortPuts – First ones in this expiration…
Sold LABU SEP 25 2020 40.0 Puts @ 1.45
$RH BTC 9/4 297.50/312.50 BUPS at .30. STO 8/18 at 4.50
BTC $ADBE Sep-04-2020 465/475 #BuPS @0.10. Was STO @1.09 on 8/27.
$RKT STO 9/18 28/37 strangle at 5.97. Call side is covered. Hoping it won’t pull a ZM on me. But then again, that would not be so bad.
Apple’s Market Cap Surpasses The Entire Russell 2000 Due To “Option Insanity”
The convexity skew picture on big-name equities like Apple $AAPL has gone parabolically stupid. Let’s keep this simple and draw a conclusion.
Apple $AAPL Stock near $130
Jan $180 Strike Calls costs $4
Jan $80 Strike Puts costs $1
*Both options are $50 out of the money, approx data, BUT it is nearly 3x more expensive to buy upside risk in AAPL equity. What does this mean?
Apple closed near $130, while the cost of speculative upside calls is weighted heavily against the buyer.
#SPX7dteLong Bought to Open $SPX Sept 8th 3495/3515-3525-3545 condors for 16.10, with SPX at 3519.
#FallingKnife at a new low of 36.50
Sold 1 WBA 10/02/2020 36.00 Put @ 1.20
Sold 1 WBA 10/16/2020 35.00 Put @ 1.15
#UnbalancedButterfly Original trade was STO SEDG 1 x 3 x 2 SEP 18 2020: 210 / 200 / 190 Unbalanced Put Butterfly @ $2.68 credit.
SEDG is currently @ $220. Looking to take off the 1 x 210 / 200 long put spread, and then layer on a Bear Call spread to create an Unbalanced Iron Condor (1 x 200 / 210 : 2 x 230 / 240).
STC SEDG 1 x SEP 28, $210 / $200 long Bull put spread @ $2.90
STO SEDG 1 x SEP 28, $240/ $230 Bear Call spread @ $2.90 (yes, same prices)
Total credit received so far ($2.68 + $2.90 + $2.90) is $8.48.
Original trade link: https://wp.me/p6Nxuc-jFO
BTC Sep-04-2020 290/300 #BuPS @0.06 Debit. Was STO on 8/6 @1.56.
STO Oct-02-2020 325/335 #BuPS @1.81 Credit.
Holding Sep-11 290/300 #BuPS, Sep-18-2020 310/320 #BuPS and Sep-25 320/330 #BuPS
Rolled SPCE 30 Sep-18-2020 30 #ShortPuts // Oct-16-2020 #ShortPuts @0.41 Credit. (slowly getting less bad)
Both within 1% of their YTD low
Both in the S&P500
Both profitable and pay dividends
Also GILD bears watching
#earnings #IC #bups
BTC 370/360 BECS at 9.65 STO IC at 3.00 Trying to mitigate some of loss by selling
$ZM STO 9/4 380/400 BUPS at 2.00 and closing
$ZM BTC 9/18 240/250 BUPS at .20. STO 8/4 at 3.75
Every day brings in crazy milestones from the hot U.S. tech space, like Apple being worth more than the entire FTSE 100 or Tesla being worth more than any European blue chip.
Today’s fun is brought to you by Zoom, which is up an whopping 45%!
The surges has lifted the live-video platform brought to fame by COVID-19 lockdowns to a market-cap of about 133 billion dollars or 112 billion euros.
Only 10 companies in the pan-European STOXX 600 index are worth more:
$DOCU STO 9/11 222.5/232.5 BUPS at 3.70
#ShortStrangles – Rolling up the put side for additional premium. New strike still well outside the expected move and below the 50ma.
Rolled NFLX SEP 18 2020 440.0 Put to SEP 18 2020 475.0 Put @ 1.81 credit
New position: 475/640 @ 5.40
$WORK STO 9/11 27.50/30.50 BUPS at .75
$MRVL STO 9/11 38/40.5 strangle at 1.20
Another new all time high in the SPY (ignoring pre/post markets) and /VX futures are still up, though not as much as yesterday.
VIX is down a bit now but opened at a new high for this move at 26.59
Another day, another tech stock rocketing higher after crushing earnings. Ho hum.
Huge earnings beats are becoming a weekly event, and there is no denying that the recent stock market action is producing some interesting results. With index inclusion decisions looming, trading should stay interesting.
Zoom Video Communications (ticker: ZM) stock is up 27% in premarket trading Tuesday after reporting second quarter numbers Monday evening. The company earned 92 cents a share. Analysts were looking for 45 cents in per-share earnings. It was a huge beat.
The stock is at $411 in premarket trading, bringing year-to-date gains to roughly 500%. Zoom’s market capitalization is now roughly $115 billion , making it worth more than IBM ( IBM ). Impressive.
#ShortPuts – 1.5x the expected move and down closer to the 50ma.
Sold TSLA SEP 11 2020 350.0 Put @ 3.50
Tesla Announces $5 Billion “At The Market” Stock Offering
In short, for those asking why TSLA picked an ATM, it was to avoid an institutional roadshow where buyers can perform due diligence or simply ask questions.