AAPL BTO STOCK I bought in tranches of 25 shares each @113.66. 112.75, 112.0
LCA STO 9/18/20 17.5 PUTS @.90
LCA STO 9/18/20 20.0 CALLS @.80 This week this is a weekly, next Friday it becomes a monthly again.
Monthly Archives: September 2020
DOCU put spread
I might be a bit early on this one but the stock is down over 30% since before the earnings announcement last week and while the stock is down a little today, selling momentum seems to have slowed with price now hanging around with the 50 day moving average. Sold $DOCU 10/16 180/170 bull put spread @ 2.28. Short puts 27 delta. IV rank is 39.
VXX – starting my rolls
Bought to close VXX 09/11/2020 27.50 Puts / Sold VXX 09/18/2020 26.50 Puts @ 0.12 Credit plus an additional point lower on the short strike.
Filled when VXX hit 26.15
DKNG, I did a combo…
DKNG, I did a combo for a debit of .65 cents for October 16 expiration.
BTO 1, 45 call
STO 2, 55 call
BTO 1, 60 call
STO 1, 35 put
I did the same trade on PENN for a debit of 1.60 but different strikes.
AAL
Not timely – STO Sep-18-2020 AAL 14 CoveredCalls @0.32.
Holding Sep-11-2020 AAL 14 Calls short expecting to expire today.
WBA Put roll
Bought to close WBA 09/11/2020 36.0 Puts / Sold WBA 09/18/2020 36.0 Puts @ 0.17 Credit.
LULU
#ShortStrangles -Risk reduction.Should have followed @jsd501 out yesterday! I’ll still take it. 🙂
Bought to Close LULU SEP 18 2020 300.0/380.0 Strangle @ 1.98 (sold for 4.60)
WDC Calls
Sold WDC 09/18/2020 40.0 Diagonal Calls @ 0.25 replacing the calls for this week I covered at a penny yesterday.
#DoubleDip
CHWY Earnings
#ShortPuts #Earnings – No interest in keeping this one. Taking the beer money.
Bought to Close CHWY SEP 18 2020 55.0 Puts @ .89 (sold for 1.35)
WDC
Bought to close WDC Sep 11 2020 40 Diagonal Calls @ 0.01.
They won’t trade any lower
#earnings PTON Sold Oct. 16,…
SPX 1-dte
Skipping the trade for tomorrow’s expiry.
QQQ, looking at the chart,…
QQQ, looking at the chart, it looks like we could go down to 250 if it breaks the 50day MA. Not making a prediction but just being cautious.
A TRADE:
OSTK BTC 9/11/20 81.0 CALL @.90 STO @4.20 this morning.
TDOC
#ShortPuts – Just for safety…
Bought to Close TDOC SEP 11 2020 185.0 Put @ .28 (sold for 2.90)
LABU
#ShortPuts – Closed some this morning. Throwing some new starters out there now.
Sold LABU SEP 25 2020 40.0 Put @ 1.65
Sold LABU OCT 2 2020 35.0 Put @ 1.15
#earnings CHWY #jadelizard with a…
#earnings CHWY #jadelizard with a long put
Sold Sept. 18, 55.50/59.50/62.50/64 for 2.13
Thanks for the data Jeff
Preparations for the Elections more…
Preparations for the Elections
more of a general question but how are you preparing for the jump of volatility that inevitably will happen during the first week(s) of November.
- Do you retreat to all cash in your trading accounts?
- if not, do you hedge it and how?
I have started to get some long calls on VXX, far OTM with expiration in November and/or December, added a Call calendar in VXX with October / November expiration. Just not sure what else could be done
CHWY earnings analysis
#Earnings $CHWY reports tonight. Below are details on earnings one-day moves over its entire history.
A rare case where the expected move is nearly twice its historical maximum move.
June 9, 2020 AC -3.64% -3.64%
April 2, 2020 AC -4.82% -4.82%
Dec. 9, 2019 AC +5.45% 5.45%
Sept. 17, 2019 AC -6.14% -6.14%
July 18, 2019 AC -6.57% -6.57%
Avg (+ or -) 5.32%
Bias -3.14% , negative bias on earnings.
With stock at 62.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 54.66 to 69.34 (+/- 11.8%)
Based on AVERAGE one-day move over last 5 quarters: 58.70 to 65.30
Based on MAXIMUM one-day move over last 5 Q’s (6.6%): 57.93 to 66.07
Based on UP max only (+5.5%): 65.38
Open to requests for other symbols.
DIS (ESPN), VIAC (CBS)
Both higher on the start of the NFL season tonight
Are people so starved for entertainment?
RH earnings
Up 23% on earnings
How do analysts keep getting this one wrong?
Fires
Jeff, I hope you are OK where you are
Gov. Kate Brown said the communities of Blue River and Vida in Lane County had been devastated by wildfires this week, while Phoenix and Talent, in the southern part of the state, have reported “significant damage,” the Portland Tribune reported.
Brown said, “this could be the greatest loss of life and structures due to wildfire in state history. ”
The state’s fires remain largely unchallenged Thursday morning as emergency personnel continues to evacuate thousands of people to safety. Doug Grafe, with the Department of Forestry, said the fire situation in the state is “zero percent containment.”
“The largest blaze is the Santiam/Beachie Creek Fire, at 132,450 acres burned east of Salem. It is zero percent contained. The Lionshead Fire has burned 109,222 acres. Fire officials said they expected the fires in the Santiam River area to combine into one large blaze about 3,000 firefighters are deployed,” The Tribune said.
A TRADE:
OSTK STC STOCK @82.28 BTO 80.75 81.0 CALL, now uncovered Expires tomorrow.
VXX
Sold to open 1 VXX 09/18/2020 30.0 Call @ 0.98 against a long October 70.0 call left over from an old diagonal spread.
Took the money and bought a speculative December 90 call @ 0.86 ( Election hedge).
VXX @ 27.20
#earnings #closing LULU Sept. 8,…
Sept. 8, sold Oct. 16 #ironcondor for 2.66, bought today for 1.96.
LULU roll
Closing CRWD
Bought to close $CRWD 9/18 110/115//145/150 iron condor @ .65. Sold for 1.40 on 9/3.
CHWY Earnings
#ShortPuts – Going out a week and staying small.
Sold CHWY SEP 18 2020 55.0 Puts @ 1.35
LULU, BTC September 18, 300/380…
LULU, BTC September 18, 300/380 strangle at 1.30, sold at 5.50, hat tip to Fuzzball for the idea.
LABU OSTK
#CoveredCalls #ShortPuts – Booking, rolling and adding…
OSTK: Covered call and new sale.
Rolled OSTK SEP 11 2020 70.0 Call to SEP 18 2020 70.0 Call @ 2.16 credit
Sold OSTK SEP 18 2020 75.0 Put @ 4.00
LABU: These weren’t looking so hot a couple days ago. I’ll take ’em here.
Bought to Close LABU SEP 11 2020 45.0 Puts @ .30 (sold for 1.80)
Bought to Close LABU SEP 11 2020 47.5 Put @ .70 (sold for 2.45)
Closing AMZN
Bought to close 9/18 $AMZN 2980/3000//3600/3620 iron condor @ 2.60. Sold for 6.79 on 8/18.
A TRADE:
OSTK BTO STOCK 80.75 To cover short call I traded today. Expires tomorrow. Stock up 11.0 points on what, I think, is positive news.
SPX 7 dte
#SPX7dte Bought to Open $SPX Sept 16th 3395/3415-3425/3445 condors for 17.75, with SPX at 3419.
A TRADE:
OSTK STO NTM 9/11/20 81.0 CALL @4.20
Closed AMZN 2940/2990-3950/4000 Iron condor…
Closed AMZN 2940/2990-3950/4000 Iron condor at 7.00, sold at 8.01
I am back.
VXX
Sold 1 VXX Sep 11 2020 25.50 Put at $0.27.
Sold against old long Puts as always
#DoubleDip
#closing AMZN Aug. 21, sold…
#closing AMZN #shortputspread NKLA
AMZN Aug. 21, sold an Oct. 16, 3030/3050/3660/3680 #ironcondor for 6.30, bought today for 3.48
NKLA sold Oct. 16, 20/30 for 1.47
ABBV – Oven Baked Election Proof
BTO ABBV stock @ $92.19
STO ABBV Nov: 90 call @ $5.25
BTO ABBV Jun 2022: 120 put : @ $38.42
ABBV pays a $4.72 per share dividend (5.1% yield).
For the $120 protective put you are paying (92.19 + 38.42) – 120 = $10.51 premium. The first call sale ($5.25) pays off 50% of that premium.
NFLX
#ShortStrangle – Adding another short call to the strangle for additional premium.
Sold NFLX SEP 18 2020 550.0 Call @ 1.75
Position is now 475/550/600 @ 8.40
$SPX for Friday
Let’s try this again. Sold $SPX 9/11 3300/3325/3500/3525 iron condor @ 3.95. Short deltas 14 (puts) 10 (calls).
VXX Diagonal Calendar Put
I’m adding to my long in a new expiration month with this spread.
Bought to open VXX 03/19/2021 14.0 Puts / Sold VXX 09/11/2020 26.50 Puts @ 0.07 Credit.
VXX is 26.65
SPY Roll
Bought to close 1 SPY 09/09/2020 337.0 Call / Sold 1 SPY 09/11/2020 339.0 Call @ 0.14 Credit
Got a 2 point better strike on the short for just 2 more days.
Did the switch with SPY @ 341.28
RH condor
#Earnings Got filled on what is almost a 1/1 risk/reward, on the chance this will have a smaller than usual move.
Sold $RH Sept 11th 285/287.5-352.5/355 condors for 1.202. Strikes are 10.2% OTM, while average move has been 16.2%. But that average is skewed higher by some huge moves that haven’t happened in more recent quarters.
SPX trades
#SPX1dte Call side stop was touches, so BTC $SPX Sept 9th 3440/3460 call spreads for .45. Condors sold for 1.15… total closing costs .60, so profit of .55.
#SPX7dteLong Set to expire: $SPX Sept 9th 3480/3460 put spreads for max credit of 20.00. Condors bought for 17.20 last Thursday, so profit of 2.80.
#ironcondor TSLA Sold Oct. 16,…
#ironcondor TSLA #shortputs WBA
TSLA Sold Oct. 16, 250/260/450/460 for 3.56
#tastytradefollow
WBA sold Oct. 16, 32.50 put for .53
SPY
First new position in a while as I add to my spreads
Bought 1 SPY 10/23/2020 360.0 Call / Sold 1 SPY 09/16/2020 345.0 Call @ 0.22 Credit.
The real money is not made on the first write, but on the follow on writes if the first short expires.
SPY at 341.50 when this was put on.
NUGT Calls Rolled / VXX Puts
#coveredcalls
$NUGT BTC 9/18 100 calls and STO 9/26 105 calls at .15 debit. Been rolling this longer then the miller’s daughter in Rumpelstiltskin has been spinning gold from hair.
#shortputs
$VXX STO 9/11 26 put at .25. Thank you @optioniceman for reminding to sell against the long $VXX pyt.
RH earnings analysis
#Earnings $RH reports tonight. Below are details on earnings one-day moves over the last 12 quarters.
June 4, 2020 AC -0.88%
March 30, 2020 AC -14.85%
Dec. 4, 2019 AC +13.39%
Sept. 10, 2019 AC +5.07%
June 12, 2019 AC +15.82%
March 28, 2019 AC -21.96% Biggest DOWN
Dec. 3, 2018 AC +10.90%
Sept. 4, 2018 AC -13.06%
June 11, 2018 AC +30.54%
March 27, 2018 AC +22.48%
Dec. 5, 2017 AC +0.79%
Sept. 6, 2017 AC +44.75% Biggest UP
Avg (+ or -) 16.21%
Bias 7.75%, positive bias on earnings.
With stock at 320.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 279.63 to 360.37 (+/- 12.6%)
Based on AVERAGE one-day move over last 12 quarters: 268.14 to 371.86
Based on MAXIMUM one-day move over last 12 Q’s (44.8%): 176.80 to 463.20
Based on DOWN max only (-22.0%): 249.73
Open to requests for other symbols.
TRADES: When I trade high…
TRADES: When I trade high priced stocks over $100.00, I trade in increments of 25 shares.
VMW BTO STOCK @136.89
WKHS STO 9/11/20 25.0 CALLS @1.07
AAPL BTO STOCK @116.96, 116.60, 116.40, 117.32,117.72 Method not for everybody,works4me.
WKHS STO 9/18/20 30.0 CALLS @.90
TQQQ
#ShortPuts – Not quite half but I’ll take it for one day.
Bought to Close TQQQ OCT 2 2020 85.0 Put @ 1.95 (sold yesterday for 3.45)
WBA Diagonal Calendar
Adding one more:
Bought to open WBA 10/23/2020 30.0 Puts / Sold WBA 09/11/2020 35.50 Puts @ 0.17 Credit
DOCU
#ShortPuts – Jumping back in for a quickie…
Sold DOCU SEP 25 2020 177.5 Put @ 2.50
SPX 1-dte
#SPX1dte BTC $SPX Sept 9th 3200 puts for .15. Condors sold yesterday for 1.15.
VXX Puts
Sold 1 VXX 09/11/2020 26.0 Put @ 0.37
plus:
VXX Diagonal Calendar Put
I’m adding a new long in a new expiration month with this spread
Bought to open VXX 03/19/2021 14.0 Puts / Sold VXX 09/11/2020 27.0 Puts @ 0.12 Credit.
LULU
#ShortStrangles – After earnings short term strangle…
Sold LULU SEP 18 2020 300.0/380.0 Strangle @ 4.60
VIX SPY
Mirror image of last week.
SPY down
VIX Down
SPX 1-dte
#SPX1dte Sold to Open $SPX Sept 9th 3180/3200-3440/3460 condors for 1.15, IV 31.32%, SPX 3343, deltas -.05,+.06.
Today’s condor: closed put side for .10, remainder expires.
#earnings #ironcondor LULU It took…
#earnings #ironcondor LULU
It took a few tries at different prices and expirations throughout the day
Sold Oct. 16, 280/290/430/440 for 2.66
Thanks for the data Jeff
#tastytradefollow
AMAT short puts
With the stock looking weak and a decisive break below the 200 day moving average, this wouldn’t be the ideal day (at least technically) to sell puts and take a bullish position. But I am looking to potentially acquire this stock below 50 and this put sale will allow me to do that if it continues down more than another 10% at expiration. As of now it’s down almost 9% today, almost 15% over the last 4 trading days and around 20% from its intraday high on 8/14.
Sold $AMAT 10/16 50 puts @ 1.60. Delta 25. IV rank 34.
VXX Puts
Sold 1 VXX 09/11/2020 27.0 Put @ 0.58
Sold VXX 09/11/2020 26.50 Puts @ 0.39
Sold these against existing long puts in 2021 and 2022
VXX
#ShortPuts – Small hedge for quite a few longs next week…
Sold VXX SEP 11 2020 27.0 Puts @ .61
VXX Diagonal Calendar Put
Even though I have a boatload of long (Fully paid for) Puts for 2021 and 2022 I’m adding a new long with this spread
Bought to open VXX 01/15/2021 17.0 Puts / Sold VXX 09/11/2020 27.50 Puts @ 0.03 Credit.
This puts my VXX Short Strangle positions more in balance for the coming week
SPX 1-dte
#SPX1dte BTC $SPX Sept 8th 3260 puts for .10. Condors sold for 1.25 on Friday.
I will be selling a new one for tomorrow’s expiration.
KSS Covered Call
Sold 1 KSS 10/16/2020 25.0 Covered Call @ 1.09
AAL Diagonal Calendar, Covered Call
Bought to open AAL 10/16/2020 23.0 Calls / Sold AAL 09/11/2020 14.50 Calls @ 0.03 Credit.
Also sold 1 AAL 09/11/2020 14.50 Covered Call @ 0.25, replacing the strike 14 call from last week.
LULU earnings analysis
#Earnings $LULU reports tonight. Below are details on earnings one-day moves over the last 12 quarters.
June 11, 2020 AC -3.81%
March 26, 2020 AC -5.95%
Dec. 11, 2019 AC -3.73%
Sept. 5, 2019 AC +7.81%
June 12, 2019 AC +2.12%
March 27, 2019 AC +14.12%
Dec. 6, 2018 AC -13.36% Biggest DOWN
Aug. 30, 2018 AC +13.08%
May 31, 2018 AC +16.31% Biggest UP
March 27, 2018 AC +9.21%
Dec. 6, 2017 AC +6.42%
Aug. 31, 2017 AC +7.19%
Avg (+ or -) 8.59%
Bias 4.12%, strongly positive bias on earnings.
With stock at 360.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 320.79 to 399.21 (+/- 10.9%)
Based on AVERAGE one-day move over last 12 quarters: 329.07 to 390.93
Based on MAXIMUM one-day move over last 12 Q’s (16.3%): 301.28 to 418.72
Based on DOWN max only (-13.4%): 311.90
NOTE: Max 5-day moves are -11.1% and +18.1%, so slightly more bullish than 1-day.
Open to requests for other symbols.
SPX 7-dte
#SPX7dteLong Bought to Open $SPX Sept 14th 3340/3360-3370/3390 condors for 18.25, with SPX at 3367.
#coveredcalls WBA M Replacing a…
#coveredcalls WBA M
Replacing a couple expirations
WBA sold Sept. 18, 39 call for .18
M sold Sept. 18, 8 call for .17
WBA Diagonal Calendars
Bought to open WBA 10/16/2020 30.0 Puts / Sold WBA 09/11/2020 36.0 Puts @ 0.12 Credit
Bought to open WBA 10/23/2020 30.0 Puts / Sold WBA 09/18/2020 35.50 Puts @ 0.16 Credit
The stock is 36.61 with the Low YTD of 36.50 and a big dividend yield. I’m hoping it holds here in a weak market.
TQQQ
#ShortPuts – Let’s see if it can take out all the major moving averages…
Sold TQQQ OCT 2 2020 85.0 Put @ 3.45
My Podcast
I’m no longer going to use Options Bistro to post my podcast, “The Pick,” but that won’t stop me from shameless self promotion. I’ve added a section for my podcast at the bottom of the right hand column. It will display the three latest posts, and clicking on any of them will connect to the website where you can link to the episodes, videos, and other information about the show.
This podcast s NOT about trading, but rather music and entertainment. I hope you listen and enjoy!
Collar Course Recommendation
Hi Everyone! Big winter storm bearing down on us here in Denver. The last time I remember a snow on Sep 8 was about 22 years ago, I was working for a dot-com startup that went public with a billion $ and lost it all. Another thing that happened over 20 years ago was that I was a subscriber to Power Options. I know that because I purchased a course from them a couple weeks ago and had to update my address on the platform….an address over 20 years old in the pacific northwest.
So, I just love collars, and have found several different ways to structure them, as you know. But….I can’t even begin to tally up the amount of $$$ I lost on the collar ceilings in the last quarter. TSLA, AAPL, NVDA, PTON, ROKU, even JNJ. I stumbled onto “The Blueprint” course at Power Options and decided to take the plunge. It’s $339 I think. I am super enjoying the course though, well worth the money. There is so much nuance and depth to collar structures—one might think them simple, pedestrian–but there are layers and layers of beautiful complexity to them. This one (Blueprint) uses very long term (5+ months) and very DITM puts for the married put portion. (Think, a long term $120 put on a $100 stock guarantees a $120 sell price—the only risk in the position is the extrinsic above the strike. The positions start off with no ceiling limitations, just significant downside protection from a higher stock price). Then they have 12 various income methods to cover that extrinsic risk, thus yielding a “bulletproof” position. The income methods—some are obvious, but many are VERY unique in the management of this type of position. Then the course originator (Radioactive Trading, which has partnered w/ Power Options) has hours and hours of highly informative webinars that further train and explain application of the income methods.
Power Options has developed into a pretty robust scanning platform. They have a cool list for covered calls called the “7/11” list. The companies on the scan provide covered call ops with at least 7% return on assignment and at least 11% downside protection. I started using the 7/11 list for collar candidates. WKHS, posted by @honkhonk81 this week is on the list, so I put a collar on it this week.
Along w/ purchasing the Blueprint course Power Options gave me 6 weeks of free trial.
Geez, I know this sounds like an advertisement, but NO affiliation, not looking for any referral credits here….just passing along a good thing, worth the price. The Radioactive Trading site probably has free videos to review if interested.
Sue
EWZ
BTC EWZ Sep 04 $30.5 call @ $1.01 (sold for $0.89);
0.5 x EWZ Sep 04 $30.5 put expired worthless (sold for @ $0.51)
0.5 x EWZ Sep 04 $30.0 put expired worthless (sold for @ $0.58)
STO EWZ Sep 11 $31 straddle @ $1.65
Cover is EWZ Jan 2022 long strangle $27 call / $37 put – which is showing a small profit.
IBB
IBB @ $129.28
BTC Sep 04: $133 straddle for $5.63 (originally sold for $3.94).
STO Sep 11: $130 call @ $1.15
STO Oct 02 : $130 put @ $5.73
Cover is IBB Jan 2022 : long strangle $115 call / $150 put @ $53.74
WKHS The volatility seems to…
WKHS The volatility seems to be high, as evidenced by the nice premiums. Is there a reason for this? Also the stock, IMO, has low entry costs. IMO an ideal stock to trade for me, a seller of call premium.
Options Bistro 