DKNG Anatomy of a Trade

Here’s a Tasty Trade segment done today on how they managed the swings in DKNG to a profit, I thought it was a really good example of “what can be done” with a crazy stock. I’ve got DKNG collared, and am not quite net-profitable on it after the big drop, but I have (and continue to) collected a lot on the short hedges.
Sue

https://tastytrade.com/tt/shows/market-mindset?_sp=f133318e-0cd5-4c2d-a1bb-31c2e60b16b0.1605556482468

#closing #shortputs CCL Closed a…

#closing #shortputs CCL

Closed a Nov. 20, 20 put, originally sold June 9 as a June 19, 21 put. It was rolled 5 times, finally made about $150. CCL was as low as 12.11 on Oct. 29, hanging around 17.40 today.

Ignoring Gift Horse NVDA Covered call

#coveredcalls

$NVDA STO 11/20 550 call at 17.82. Covering shares assigned Friday at $535

SPY Roll

Bought to close 1 SPY Nov 16 2020 349 Call / Sold to Open 1 SPY Nov 20 2020 349 Call @ 0.52 Credit

#closing TTD Nov. 10, sold…

#closing #shortputspread TTD #shortputs XOM

TTD Nov. 10, sold a Nov. 27, 660/670 put spread for 2.10, bought today for .98
XOM Aug. 4, sold an Aug. 14, sold a Sept. 18, 40 put for .76, rolled it out twice, closed today, made $32 on the recent increase in price.

SPX trades

#SPX7dteLong Bought to Open $SPX Nov 20th 3600/3620-3630/3650 iron condors for 16.35, with SPX at 3627.

Expected for expiry today: Nov 16th 3580/3600 call spreads for max credit of 20.00, plus 1.00 I got for put side this morning. Condors bought for 16.68 last Wednesday.

#SPX1dte: Expected to expire worthless: Nov 16th 3475/3495-3655/3675 condors, sold Friday for 1.15.

#shortputs DKNG Sold Nov. 20,…

#shortputs DKNG

Sold Nov. 20, 40 put for .57. DKNG down today, apparently on the wrong side of the Baltimore/New England game

INTC

Sold INTC Nov 20 2020 47.0 Covered Call at $0.37 to replace the 46.50 Covered Call that expired Friday

PFE

Now trading down where it was before the vaccine announcement.

SLB Covered Calls

Sold SLB 11/20/2020 19.50 Covered Calls @ 0.26
Sold SLB 11/20/2020 20.00 Covered Calls @ 0.11 & 0.17

VXX new Long term Diagonal Puts

Can you say contango?
Bought to open VXX Jan 21 2022 6 Puts/ Sold to Open VXX Nov 20 2020 18 Puts at $0.07 Credit.
Bought to open VXX Jan 21 2022 5 Puts/ Sold to Open VXX Nov 20 2020 17.5 Puts at $0.05 Credit.
Long side = 432 DTE
Short side = 5 DTE

AAL

STO $AAL Nov-20-2020 13 #CoveredCalls @0.30.

OSTK

#CoveredCalls – Sold OSTK NOV 20 2020 56.0 Calls @ 1.60

SPX 7-dte

#SPX7dteLong Sold to close $SPX Nov 16th 3570/3550 put spreads for 1.00. Leaving the 3580/3600 call spread to expire for full 20.00 credit. This takes away my protection from am intraday drop, but market looking stable and Moderna news should keep us positive today. Condors bought for 16.68 last Wednesday.

ABT Covered Call Strategy Progressing Well

https://coveredcallswithjeff.wordpress.com/2020/11/16/covered-call-strategy-on-abt-progressing-well-profit-of-22682-in-174-days-or-83-174-annualized-31-rolls-of-the-short-calls/

#abt-2, #coveredcalls-2

REGN BuCS – 9 Rolls and still a challenge

We have been tracking our REGN BuCS since it was established on Oct 12. It remains a challenge…..

https://coveredcallswithjeff.wordpress.com/2020/11/16/regn-bull-call-spread-a-challenge-so-far/

#bucs-2, #regn

BX – Calls instead of Stock with Protection – test case


Started on July 10th 2020. BX stock price @ $53.60. Ended on November 13th 2020. BX stock price @ $56.16


Stock price range during the period was $50.65 low, $59.10 high. Trading within that channel saw a couple of strong up and downtrends (more rolling than I expected).

Opening transaction: Buy 1x Dec 18, 2019; 40 Call (cost $15.75) / 55 Put (cost $6.45) Long Strangle Stock Replacement + Put protection, debit cost $22.20.

Close out transaction was a credit of $17.40 ($15.64 calls, $1.76 puts) – so the Puts suffered more from time decay and a lower VIX (my assumption).


Over the period 49 Buy/Sell (split 50% Buy / 50% Put) transactions made with a net final total profit of $0.76 per contract (10 contracts = $760).


Strategy was selling 1x weekly calls and 0.5x weekly puts – rolling as required.

In this case, Buy and Hold w/o protection would have been a more profitable strategy.

A couple of takeaways, and it is relevant for a #sleepatnight strategy.

  1. DITM Collar trades pay off more to the downside (the combined short deltas of short calls + long puts) so great for an averaging down strategy.
  2. Overcoming time decay on the long puts is a challenge and a balancing act, particularly in a period of rapid stock price appreciation as one has to deal with both short calls and long puts being challenged.
  3. Depending on risk tolerance careful analysis is needed on the strike prices of the short calls and long puts in a collar trade.

#sleepatnight