#ShortPuts – Nice bounce today…
Bought to Close TDOC OCT 23 2020 187.5 Put @ .20 (sold for 2.50)
Monthly Archives: October 2020
SPXL Leap Diagonal
BTO SPXL (3 x SPY ETF) Apr 2021 50 Call ($17.30) / Jan 2023 40 Call ($29.40) Diagonal @ $12.10 (selling the shorter term, buying the longer term) – a $10 spread with good rolling opportunities.
I know most of the trade ideas here are for short to mid term time frames – I thought I’d share a longer term bullish trade that should be relatively easy to manage. As SPY is going to the moon I thought I’d go along for the ride.
I’m cognizant of the fact the theta decay could be huge, but over the longer term expecting it to roughly track 3 x the performance of the S&P 500.
SPX trades
#SPX1dte BTC $SPX Oct 12th 3530 calls for 4.40 (at 2 minutes before close). Condors sold Friday for 1.40. Fortunate to get a pullback at the close.
#SPX7dteLong Oct 12th 3420/3440 call spreads expire for max credit of 20.00. Condors bought last Tuesday for 16.85.
Just after closing bell: Bought to Open $SPX Oct 16th 3510/3530-3540/3560 iron condors for 16.20, SPX at 3534.
TQQQ
#ShortPuts – Starter position down below the 20, 50, and 100 day.
Sold TQQQ OCT 30 2020 115.0 Put @ 2.00
TQQQ
STO October 23, 135 puts at 2.45 in my IRA
OLED
#JadeLizards – Just for something to do. Selling the week before earnings and playing for a pullback over the next week. No upside risk…
Sold OLED OCT 23 2020 187.5/197.5/200.0 Jade Lizard @ 2.55
SPY Rolls
Rolled all today’s short diagonal calls to Wednesday or Friday expirations for small credits.
Too numerous to list.
SPX rises…
…and so does VIX. The day opened at 3505 with expected move for today’s expiration at 18.00. So with my short strike at 3530, it seemed safe for me to head out on some errands this morning. Now, expected move was MORE than doubled.
Looking for any pullback to get out at a smaller loss than I’m seeing now. #SPX1dte
TQQQ
STO October 16, 145 puts at 1.86
NFLX
BTC October 16, 480 put at .18, sold at 3.20 Thanks to Fuzzy for the idea.
TSLA
#ShortStrangles – Not fighting the upside on these. Stopped out of call side at nearly even and rolling up the put side to the expected move. See if we can talk this thing down a little going into earnings next week.
Bought to Close TSLA OCT 16 2020 480.0 Call @ 2.86 ( sold for 2.73)
Rolled TSLA OCT 16 2020 400.0 Put to OCT 16 2020 425.0 Put @ 2.45 credit (8.20 total now)
NVAX Put
#shortputs
$NVAX STO 10/16 105 put at 1
PYPL BUCS PENN Calls Closed
#bucs
$PYPL BTO 10/23 200/210 BUCS at 4.08. Earnings 10/28
#coveredcalls
$PENN BTC 10/16 78 calls at .10. STO at 3.62
NFLX
PYPL
STO October 30, 200 put at 5.05
Closed ADBE
Bought to close $ADBE 10/16 450/460/510/520 iron condor @ 2.52.
Position was originally 420/430/510/520 and put spread was rolled up to 450/460. Total premium taken in 4.29, so 1.77 profit (57% of the premium for the original trade).
Closed NVDA
Bought to close $NVDA 10/16 470/480/590/600 iron condor @ .95. Sold for 2.65 on 9/29.
OSTK
#ShortPuts – Selling the high election IV and a couple weeks prior to earnings…
Sold OSTK OCT 30 2020 67.5 Put @ 2.80
Sold OSTK OCT 30 2020 65.0 Put @ 2.20
Sold OSTK OCT 30 2020 62.5 Put @ 1.70
NVDA
BTC October 16, 480/470 put spread at .02
BTC October 23, 440/450 put spread at .05
NVTA NVAX Puts / LYFT Put Roll / NFLX BUPS Closed
#shortputs
$NVTA STO 10/16 50 put at .70
$NVAX STO 10/16 105 put at 1.00
$LYFT BTC 10/16 30 put and STO 10/23 30 put at .10 credit
#bups
$NFLX BTC 10/16 480/500 BUPS at .60. STO at 7.60
ADS WBA Calls
Sold 1 ADS 10/16/2020 51.0 Covered Call @ 0.45 Stock = 48.50
Sold WBA 10/16/2020 40.0 Covered Calls @ 0.26 #Earnings this week. Stock = 37
Markets
This week …….
Expiration / Assignment
#optionsexpiration
$NVAX 120 call
$LABU 40 put
$OSTK 70 put Thank you @fuzzballl
$DKNG 41 put
#assignment
$T 28.50 put
$TDOC 220 put
AAL Roll / NVAX Expire
Rolled AAL Oct-09-2020 13 #CoveredCalls // Oct-23-2020 14 @0.35. (thought about letting it get assigned)
OX $NVAX Oct-09-2020 84/94 #BuPS – STO @1.22 Thanks @geewhiz112
STO $NVAX Oct-23-2020 92/102 #BuPS @1.46 (actually put limit in at 1.32 and got a little extra)
KSS
Bought to close KSS 10/09/2020 21.50 Covered Calls / Sold KSS 10/16/2020 23.00 Covered Calls @ 0.04 Credit plus a 1.50 higher strike.
KSS @ 21.75
NVTA Short Put
#shortputs
$NVTA STO 10/16 50 put at $1.00
Econ calendar for week of 10/12/20
Link to calendar: https://research.investors.com/economic-calendar/
SPX trades
#SPX1dte Sold to Open $SPX Oct 12th 3380/3400-3530/3550 iron condors for 1.35, SPX 3474, IV 12%, deltas -.07,+.07
Expiring: Oct 9th 3355/3375-3495/3515 condors, sold yesterday for 1.00.
#SPX7dteLong Expiring: Oct 9th 3400/3420 calls spreads for max credit of 20.00. Condors bought for 17.05 on Monday.
ADS Roll
Bought to close ADS Oct 09 2020 49 Diagonal Calls / Sold to open ADS Oct 16 2020 53 Diagonal Calls @ 0.05 Net Credit but bumped the strike price 4 points and brought in a little cash.
Edit:
Bought to close ADS Oct 09 2020 49 Covered Calls / Sold to open ADS Oct 16 2020 52.50 Covered Calls @ 0.22 Net Credit but bumped the strike price 3.50 points and brought in a little more cash.
SPY Rolls
Rolled all today’s short diagonal calls to Monday or Wednesday expirations for small credits.
Too numerous to list.
AAPL BUPS Closed / VXX Put Rolled
#bups
$AAPL BTC 10/16 95/105 BUPS at .15. STO at 1.78
#shortputs
$VXX BTC 10/16 24.50 put and STO 10/23 24 put at even but do reduce strike by .50.
CCL
Why is this stock still up from March?
CCL Revenue nearly evaporates
Carnival Corp. said its revenue plunged to $31 million from $6.53 billion for the August quarter, a period that saw no sailings due to the Covid-19 pandemic and the removal of older ships as the company seeks to shrink its fleet.
The cruise operator on Thursday posted a third-quarter loss of $2.86 billion , or $3.69 a share, compared with a profit of $1.78 billion , or $2.58 a share, in the same period last year. The loss was in line with the company’s preliminary results last month. Analysts polled by FactSet were expecting a loss of $2.47 a share on revenue of $77.3 million .
Carnival also posted an adjusted loss of $2.19 a share, about in line with the $2.20 a share adjusted loss analysts polled by FactSet had expected. The company reported a profit of $1.78 billion in the third quarter last year. Carnival’s third-quarter loss was slimmer than the more than $4 billion loss it posted for the second quarter.
The cruise operator is moving to shed 18 less efficient ships, 10 of which have left the fleet, Carnival said. It said those 18 ships represent about 12% of its capacity before the pandemic and 3% of operating income in 2019.
The results came as the company’s Carnival Cruise Line has canceled most U.S. cruises through the end of the year, and its Seabourn luxury line this week canceled voyages on three ships as far forward as May 2021 . Cruise operators have lost billions of dollars this year as the pandemic forced them to halt sailings, leaving them dry in revenues. They haven’t sailed in the U.S. for more than half a year. Carnival said it expects a phased resumption of sailings.
In the U.S., the Centers for Disease Control and Prevention’s “no-sail” order was recently extended to Oct. 31 from Sept. 30 , though major cruise operators including Carnival had voluntarily agreed to cancel sailings through the end of October. The cruise industry last month proposed sailing protocols to the CDC, such as reducing virus transmission through air management.
Costa Cruises , the company’s Italian brand, started sailing again on Sept. 6 after a months-long hiatus brought on by ship outbreaks. Its German brand, AIDA Cruises , is resuming sailings in mid-October.
Carnival on average burned about $770 million a month during the third quarter, and it expects to burn about $350 million a month for the current quarter. Those cash-burn rates fall in line with the $650 million average monthly burn rate for the second half of the year the company previously expected.
Carnival said advanced bookings for the second half of 2021 available for sale as of Sept. 20 were at the higher end of the historical range.
Customer deposits as of Aug. 31 were $2.4 billion , most of which are future cruise credits the company had offered customers of canceled cruises in lieu of cash refunds, compared with $2.9 billion in May. Carnival said it can’t yet estimate how much of those deposits would be recognized in earnings compared to refunds or future cruise credits due to Covid-19 uncertainty.
The company continues to expect a loss of the year ending Nov. 30 .
KSS Roll
Bought to close KSS 10/09/2020 21.0 Diagonal Calls / Sold KSS 10/16/2020 21.50 Diagonal Calls @ 0.12 Credit plus a 0.50 higher strike.
No earnings next week for this one
KSS @ 21.68
VXX Put Rolls
Buying more time – bringing in $cash
Bought to close VXX 10/09/2020 25.0 Puts / Sold VXX 10/16/2020 25.0 Puts @ 0.29 Credit
Bought to close VXX 10/09/2020 24.50 Puts / Sold VXX 10/16/2020 24.50 Puts @ 0.34 Credit
Bought to close VXX 10/09/2020 24.0 Puts / Sold VXX 10/16/2020 23.50 Puts @ 0.02 Credit plus a 0.50 lower strike
Bought to close VXX 10/09/2020 23.50 Puts / Sold VXX 10/16/2020 23.0 Puts @ 0.11 Credit plus a 0.50 lower strike.
I have lots of short VXX calls expiring today too.
Done with worrying about VXX for this week.
TSLA
#ShortStrangles – Rolling up put side for additional credit…
Rolled TSLA OCT 16 2020 375.0 Put to OCT 16 2020 400.0 Put @ 2.00 credit
Now sitting at 400/480 @ 8.60
VXX
Swimming against the riptide on this one:
Bought 1 VXX Dec 18 2020 60.0 Call @ 0.63
Bought 1 VXX Dec 18 2020 50.0 Call @ 0.92
I will surely write against these several times.
NVDA
#ShortPuts – Hard to find anything down today. Throwing this out there prior to the election and below the 50ma and well outside the expected move…
Sold NVDA OCT 30 2020 485.0 Put @ 3.30
Closing AMZN condor
Bought to close $AMZN 10/16 2650/2700/3500/3550 iron condor @ 2.40. Sold for 14.39 on 9/11.
#shortputs DKNG Sold Oct. 16,…
#shortputs DKNG
Sold Oct. 16, 45 put for .56, stock down again today under 49.
New Covered Call on ATEC
We like to find young medical device companies with innovative technology that we can write covered calls against. ATEC looks promising. Great revenue growth and really nice margins.
Options are monthly….not ideal but they don’t take much work.
https://coveredcallswithjeff.wordpress.com/2020/10/09/new-covered-call-on-atec/
UVXY
#CoveredCalls – With earnings coming I think the buying power can be put to use in better ways. Taking the small loss on the covered stock. Sold stock pre-market at 17.75 (basis 18.90) and looking to close the short 18 calls for a penny or two.
Is SDC a good candidate for covered call strategy?
https://coveredcallswithjeff.wordpress.com/2020/10/09/is-smile-direct-club-sdc-a-good-candidate-for-covered-calls/
Update on Covered Called Strategy on Steris (STE)
https://coveredcallswithjeff.wordpress.com/2020/10/09/follow-up-on-ste-covered-call-strategy-stock-price-run-up/
AAL ADS KSS WFC
Covered Calls for next week:
Sold AAL Oct 16 2020 14.5 Covered Calls at $0.28
Sold ADS Oct 16 2020 50.5 Covered Calls at $0.60
Sold KSS Oct 16 2020 23.0 Covered Calls at $0.31
Sold WFC Oct 16 2020 26.5 Covered Calls at $0.26 (#Earnings)
SPX 1-dte
#SPX1dte Sold to Open $SPX Oct 9th 3355/3375-3495/3515 iron condors for 1.00, SPX 3445, IV 15.13%, deltas -.06,+.06
TRADES:
THC STO 10/16/20 27.0 PUTS @.52
THC STO 10/16/20 29.5 CALLS @.45 #Short Strangle
SPY – rolling out my long call
Quite a while ago I rolled up an earlier long call to a 10/16/2020 336.0 Call @ 9.03.
I’ve written against this long several times, some trades better than others.
Since this call is closing in on expiration, and many of my short calls are at or above this strike price, I’m rolling the long out to December for a credit and much more time.
Sold to close the 10/16/2020 Call @ 8.97 for a very minor loss.
Bought to open a 12/18/2020 355.0 Call @ 8.70 for 0.27 Net credit on the trade.
We will see if we get a further rally above 343.50 in the next 6 days to make my timing wrong on this.
VXX New Diagonal Puts for next week
Starting long positions in a new month
Bought to Open VXX Mar 19 2021 14.0 Puts / Sold to Open VXX Oct 16 2020 23.5 Puts @ 0.07 Net Credit with VXX at 23.75 (close to the low for the last month).
Many opportunities for #DoubleDip trades.
Also:
Bought to Open VXX Jan 15 2021 15.0 Puts / Sold to Open VXX Oct 16 2020 23.0 Puts @ 0.07 Net Credit
Bought to Open VXX Jan 15 2021 14.0 Puts / Sold to Open VXX Oct 16 2020 22.50 Puts @ 0.04 Net Credit
SPX 7-dte
#SPX7dteLong Bought to Open $SPX Oct 14th 3415/3435-3445/3465 iron condors for 16.50, with SPX 3440.
A TRADE:
HWM STO 10/16/20 19.0 ITM PUTS @.85
TSM BWB
BTO TSM Nov 20, 95 / 90 / 80 Broken Wing Put Butterfly @ $1.09 credit
ROKU BWB adjustments
Original trade: BTO Oct 16, 175 / 185 / 200 Broken Wing Call Butterfly for $0.07 debit.
Adjustment 1: Rolled the short Oct 16 185 / 200 leg to the Oct 23, 200 /215 short call spread. With ROKU on a charge need to go to the next adjustment.
Adjustment 2: Rolled the short Oct 23, 200 /215 short call spread to Nov 20, 215 / 230.
Adjustment 3: STC Oct 16, 175 /185 long call spread @ $9.83 (not sticking around for those remaining $0.17).
With ROKU still moving on up need to go to the next adjustment.
Adjustment 4: Roll the short Nov 20, 215 / 230 to Jan 21, 245 / 260 @ $2.00
So banked $9.83 from the sale of the long call spread of the BWB, and paid $2.00 (plus the original roll cost) to roll out the short leg to Jan 21. All in the name of providing a cover to the core trade which is the Jan 22, 140 / 190.
Big question is when to offset the short call spread with the short put spread? Pulling the trigger on that side of the strategy normally causes the trading gods to engineer a rapid downward move.
EWZ
#ShortPuts – Sold EWZ Oct 30 2020 27.0 Puts @ .62
SPY New diagonal
Spanning the election mess
Bought to open 1 SPY Nov 27 2020 360.0 Call / Sold 1 SPY Oct 26 2020 346.0 Call @ 0.07 Credit.
Giving at least one of my spreads room to run on an upside move.
NFLX
#ShortPuts – Week before earnings…
Sold NFLX OCT 16 2020 490.0 Put @ 2.35
OSTK
#ShortPuts – Out with the old and in with the new…
Bought to Close OSTK OCT 9 2020 70.0 Puts @ .05 (sold for 1.60)
Sold OSTK OCT 23 2020 70.0 Put @ 2.20
Sold OSTK OCT 23 2020 67.5 Put @ 1.60
Wild ride….every day! Volatility = great premiums!
https://coveredcallswithjeff.wordpress.com/2020/10/08/crazy-market-somehow-generating-great-roi/
SPY
Last roll
Bought to Close 1 SPY Oct 07 2020 340 Call / Sold to Open 1 SPY Oct 12 2020 343 Call @ 0.71 Net Credit plus a 3 point bump in the short strike.
Actually took a small profit on the 340 call from Monday’s roll.
DKNG Puts
#shortputs
$DKNG STO 11/20 45 puts at 3.20
SPXpire
#SPX1dte Expiring: Oct 7th 3255/3275-3445/3465 iron condors, sold yesterday for 1.40.
#SPX7dteLong Expiring: Oct 7th 3385/3405 call spreads for max credit of 20.00. Condors bought last Thursday for 17.55.
TLT
Back on my radar. First target would be about a 140 put sale if they ever get enough premium. Looks to be falling out of a squeeze with some more days of down possible.
NVAX Puts Closed
#shortputs
$NVAX BTC 10/9 102 puts at .50. STO at 4.25 10/2.
NET Put Closed / NVDA BUPS Closed / VXX Put Rolled
#shortputs
$NET BTC 10/16 35 put at .05. STO at 1.87
$VXX BTC 10/9 25 put and STO 10/16 24.50 put at added .15 credit and .50 less in strike.
#bups
$NVDA BTC 10/16 490/500 BUPS at .40. STO at 3.70.
TQQQ
#ShortPuts #OneNightStand – Taking these for a quick one day profit. Thanks for the tweet yesterday President Trump!
Bought to Close TQQQ OCT 16 2020 110.0 Put @ .88 (sold for 2.45)
Bought to Close TQQQ OCT 23 2020 100.0 Put @ 1.18 (sold for 2.20)
SPY
Once SPY breeched 341, I began to place my roll orders
Bought to Close 1 SPY Oct 07 2020 335 Call / Sold to Open 1 SPY Oct 12 2020 336 Call @ 0.25 Net Credit
Bought to Close SPY Oct 07 2020 336 Call / Sold to Open SPY Oct 12 2020 337 Calls @ 0.54 Net Credit
Bought to Close 1 SPY Oct 07 2020 338 Call / Sold to Open 1 SPY Oct 09 2020 338 Call @ 0.41 Net Credit
Bought to Close SPY Oct 07 2020 339 Calls / Sold to Open SPY Oct 09 2020 341 Calls @ 0.22 Net Credit.
Pushed all my strike prices up.
NVDA
#ShortPuts – Let’s try to stir something up here. Aggressive roll up for additional premium. New sale just above the 50ma and at the expected move as well as a few weeks before earnings.
Rolled NVDA OCT 16 2020 480.0 Put to Oct 16 2020 525.0 Put @ 3.15 credit (6.65 total now)
NFLX TSLA
#ShortPuts #ShortCalls – A few more fills…
NFLX: Tired of fighting this to the upside. Stock caught another ridiculous upgrade today. Small loss (.40) on calls and booking and holding short puts.
Bought to Close NFLX OCT 9 2020 475 Put @ .15 (sold for 3.15)
Bought to Close NFLX OCT 9 2020 570.0 Call @ .74 (sold against 492.5 puts @ 2.10)
Bought to Close NFLX OCT 16 2020 580.0 Call @ 3.65 (sold for 1.83)
Still holding 492.5 short puts for Friday…
TSLA:
Bought to Close TSLA OCT 9 2020 375.0 Put @ .14 (sold for 3.05)
TDOC,
STO October 9, 225 put at 2.60
TNDM
STO October 16, 115 put at 2.40
SNOW
#ShortPuts – Nice recovery in this one last few days…
Bought to Close SNOW OCT 09 2020 220.0 Put @ .14 (sold for 2.25)
VXX Diagonal Calls
Puts this morning – calls this afternoon
Bought to Open VXX Nov 20 2020 70 Calls / Sold to Open VXX Oct 09 2020 27.5 Calls @ 0.03 Net Credit
Trying to keep my positions balanced although I still have more puts short than calls, and the strikes are closer to the stock than the calls.
High so far on VXX is 25.54
SPX 1-dte
#SPX1dte Sold to Open $SPX Oct 7th 3255/3275-3445/3465 iron condors for 1.40, IV 22.87%, SPX 3366, deltas: -.07,+.04.
TQQQ
#ShortPuts – Let’s see if this thing can implode to the 200ma…
Sold TQQQ OCT 16 2020 110.0 Put @ 2.45
Sold TQQQ OCT 23 2020 100.0 Put @ 2.20
#shortputs C Sept. 30, sold…
Sept. 30, sold Oct. 16, 41.50 put for .93, bought today for .21
SPX 7-dte
#SPX7dteLong Bought to Open $SPX Oct 3390/3410-3420/3440 condors for 16.85, with SPX at 3412.
Options Bistro 