#coveredcalls
$PLTR 26
$FDX 265
$PENN 89
#shortputs
$RIOT 7.5
Monthly Archives: December 2020
Expirations
$TQQQ 12/31 135 puts
$TQQQ 12/31 142 puts
$UVXY 12/31 12/17 bear call spread
$AMZN 12/31 2950/2940 bull put spread
Happy New Year everyone! Wishing a great, healthy, prosperous 2021 to the Bistro family.
OPTIONSEXPIRATION 2020
Last one for the year.
Tough year all around but not as tough as the 2018 VIX explosion/SVXY implosion.
EXPIRED:
VXX 12/31/2020 23.0/40.0 Bear Call Spread
WBA 12/31/2020 41.0 Covered Call
GILD 12/31/2020 56.5 Diagonal Put
INTC 12/31/2020 43.5 Diagonal Puts
VXX 12/31/2020 16.5 Diagonal Puts – Part of a #ContangoSpecial
VXX 12/21/2020 16.0 Diagonal Puts – Part of a #ContangoSpecial
ASSIGNMENTS:
NONE
SPX 1-dte STOPPED
#SPX1dte Earlier I thought I’d get cute and put this trade on early in the day to boost premium. I figured we ain’t going to move much in final hours of the year.
Ha!
Stopping out the call side, will post my fill.
Beautiful Website Sendoff
TQQQ Strangle Rollout
Bought to close TQQQ Dec 31 2020 195.0 Diagonal Calls at $0.01. They won’t trade any lower.
Sold these @ 0.35 just 2 days ago.
Replaced them with TQQQ Jan 08 2021 200.0 Diagonal Calls at $0.55.
Bought to close TQQQ Dec 31 2020 150.0 Puts at $0.01. They won’t trade any lower.
Sold these @ 0.54 on 12/28.
Replaced them with TQQQ Jan 08 2021 145.0 Diagonal Puts at $0.57
So the total premium for the new 5-day strangle is $1.12 and it’s 10 points wider.
Third time writing against the Jan longs.
#TripleDIP
SPY Rollup.
This market just won’t stay down on expiration day.
Bought to close SPY Dec 31 2020 371.0 Call Net Credit / Sold to Open SPY Jan 08 2021 374.0 Call @ 1.05 Credit plus 3 more points on the short strike.
SPX
The BECS Thesis:
SPX is rarely above 15% above its 50-Week MA, and when it is, it doesn’t stay there for very long. Currently, it is 15.9% above that MA and has been as high as 16.7% above it at the recent ATH. The rubber band is pretty stretched, and should pull back at some point, even if it’s done by trading sideways while the MA catches up.
With SPX’s 50-Week MA having risen 43 points over the last month, I am projecting that that MA will be approximately 3261 in 4 weeks (it is 3218 now). Multiplying 3261 by 1.15 equals 3750. Padding that by a little for mom and the kids gets me up to 3800 for the short strike of a BECS.
The Trade:
#bearcallspreads
SPX Jan 29th (29 days)
STO 3800 / 3850 BECS for 18.25 (1 contract)
Capital Allocated: $5000
Potential Max Profit: $1825
ROC: 36.5%
Planned max loss: $1000
ROR: 182.5%
The Plan:
Upside breakeven is at about 3820 on the SPX, and my loss at that point (based on T-0) will be about $1000. If SPX reaches that point, I will roll up and double, based on my bearish thesis above.
EIGR
Several years ago I picked up shares of EIGR from a short put debacle on a biotech when some of us were at OMM. It is up 10% today. I don’t remember the biotech but could the EIGR ship be coming in?
Happy New Year!
LABU
#ShortPuts – Adding…
Sold LABU FEB 19 2021 65.0 Put @ 3.10
TSLA
#ShortPuts – Taking it a couple weeks early and prior to quarterly delivery numbers next week…
Bought to Close TSLA JAN 15 2021 450.0 Put @ .80 (sold for 4.50)
Happy New Year to the Bistro world!
Click Home/REFRESH above for the celebratory view!!!
Thanks to all for being part of this site, which just turned FIVE years old! Looking forward to another exciting year in 2021…
Below is a screengrab of my very first post, along with the first replies…. oh so long ago.
And for those of you just following but not writing posts, please email me at jpayne.rdb@gmail.com to become a Contributor if you’d like to write your own posts.
All the best!
Jeff
SPX 1-dte
#SPX1dte Sold to Open $SPX Jan 4th 3645/3665-3785/3805 iron condors for 1.25, SPX at 3730, IV at 10.8%, deltas -.06, +.06
Expecting to expire: Dec 31st 3650/3670-37703790 condors, sold yesterday for 1.15.
BIIB FSLR OSTK SNOW UVXY
#ShortPuts #CoveredCalls #ShortStrangles #OptionsExpiration – Some housekeeping today…
BIIB: Covered. Waiting for the March news about the new drug.
Sold BIIB JAN 15 2021 255.0 Call @ 5.20
Expiring: 260 Call (sold for 9.95)
FSLR: Aggravating. Coverd Calls run over. Letting stock go for a small loss. Replacing with these slightly bigger size.
Sold FSLR JAN 22 2021 87.5 Puts @ 1.10 and 1.15
OSTK: Selling calls for next week against stock that wil be assigned.
Sold OSTK JAN 8 2021 52.0 Calls @ 2.00
SNOW: Adjusting 300/430 strangle for decent credit.
Bought to Close SNOW JAN 8 2021 430.0 Call Side @ .05 (strangle sold for 7.58)
Rolled SNOW JAN 8 2021 300.0 Put to JAN 15 2021 290.0/345.0 Strangle @ 2.65 credit
Long story short: New position Jan 15 290/345 @ 10.18 credit
UVXY: Hedge for my hedge. Stock will be assigned @ 10.98 Selling covered calls at breakeven. Hope to roll on a volatility pop.
Sold UVXY JAN 8 2021 10.0 Calls @ 1.01
WFC Call Ladder Roll
Bought to close WFC Dec 31 2020 29.0 Calls / Sold to Open WFC Jan 08 2021 29.0 Calls@ 0.23 Credit.
GILD Put Ladder Roll
Bought to close GILD Dec 31 2020 57.0 Put / Sold to Open GILD Jan 08 2021 56.0 Put @ 0.29 Credit and lowered the strike price a point for only 1 more week.
That puts the strike price below the 52 week low.
In fact you’d have to go back to 2013 to find a lower price.
Dividend yield here is 4.80%
#coveredcalls FCEL BTO FCEL at…
#coveredcalls
FCEL
BTO FCEL at 11.97
STO FCEL CC, 19 Feb 25C for .73
TQQQ, BTC December 31, 142…
TQQQ, BTC December 31, 142 puts at .02 cents in my trading account and IRA. I am done for this year.
BIDU Call Rolled Again
#coveredcalls
$BIDU BTC 1/15 215 call and STO 1/22 225 call at added cost of 2.49. Rolled twice today starting at the 210 strike and ending with the 225 strike two weeks later at cost of $2.09 but would gain $15 if called away. Stock closed today at 219.63.
RH
#ShortStrangles – Out all afternoon but did have a standing order fill. This thing seems pretty mellow while it’s digesting the earnings swings (that was fun!). Adding a shorter term wide strangle to hopefully take advantage of the consolidation. Put side at the expexcted move and call side 1.5x the expected move.
Sold RH JAN 15 2021 410.0/510.0 Strangle @ 6.96
ADS Rollup
Bought to close ADS 12/31/2020 75.0 Diagonal Calls @ 0.25.
Sold these on another rollup last Thursday @ 0.87.
Replaced them with short ADS 01/08/2021 77.50 Diagonal Calls @ 1.00 for a Net Credit of 0.75 and I added another 2.50 to the short strike.
SPX 7-dte
#SPX7dte Sold to close $SPX Dec 30th 3715/3735 call spreads for 19.65. Condors bought for 15.45 last Wednesday.
VXX Contango Special
Another one:
Bought to open VXX Jan 21 2022 6.0 Puts / Sold to Open VXX Jan 08 2021 16.0 Puts @ 0.12 Credit.
Short DTE = 9 (includes the holiday weekend)
Long DTE = 387
VXX at 17.05.
#VXXContango special.
GILD
Extending my Put ladder.
Bought to open GILD May 21 2021 40.0 Put / Sold to Open GILD Jan 15 2021 55.0 Put @ $0.37 Credit.
I’ve got some 56.50 and 57.00 puts expiring tomorrow that I’ll have to deal with.
BTW: new YTD low today @ 56.56. The only SP500 stock to hit a new low today.
SPX 1-dte
#SPX1dte Sold to Open $SPX Dec 31st 3650/3670-3770/3790 ieron condors for 1.10, SPX at 3731, IV 13.0%, deltas -.08,+.08.
TQQQ Diagonal
Bought to open TQQQ Feb 19 2021 90 Put / Sold to Open TQQQ Jan 08 2021 155.0 Put @ $0.32 Credit.
I’ve got a 150/190 short diagonal strangle expiring tomorrow and will have a chance to write more of these puts later on against the leftover January monthly longs.
VXX Contango Special
Bought to open VXX Jun 18 2021 9.0 Puts / Sold to Open VXX Jan 08 2021 16.0 Puts @ 0.08 Credit.
Short DTE = 9 (includes the holiday weekend)
Long DTE = 170
VXX at 17.25.
#VXXContango special.
VXX Puts – taking a gain
Liquidating the long side of some old spreads while there is still some profit there.
Sold to close VXX Jan 15 2021 $16.0 Puts @ 0.65. Average cost into the position was $0.55.
These were purchased as part of some diagonal put spreads in late summer and early October. I’ve lost count how many times I written against them but it’s a lot.
(Calculus involved in this exit = will VXX be below 15.35 in two weeks? Inquiring minds want to know)
#shortputs CHWY Sold Feb. 19,…
#shortputs CHWY
Sold Feb. 19, 75 put for 1.74, stock at 93, up 2.65 or so, was at 108 on the 22nd, earnings in March.
SPX 7-dte
#SPX7dteLong Bought to Open $SPX Jan 4th 3710/3730/3740/3760 iron condors for 14.25, with SPX at 3733. I meant to buy Jan 4th yesterday, but I instead bought Jan 6th. So I’m doing the 4th today, even though it’s only two trading days away. Come get me.
TQQQ, STO January 29, 115…
TQQQ, STO January 29, 115 puts at 1.31
SPY Rollup
Bought to close 1 SPY Dec 30 2020 369.0 Call / Sold to Open 1 SPY Jan 06 2021 371.0 Call @ 0.70 Credit.
Added 2 points to the short strike.
NEO Puts / BIDU CC Roll
#shortputs
$NEO STO 1/15 50 puts at .80
#coveredcalls
$BIDU BTC 1/8 210 call and STO 1/15 215 call at added credit of .40 and gain $5 if assigned. Stock at 217.45
LAZR
Keep an eye on this one. Still 50 IVR on an IV of 136. After a ridiculous 4x plus move in Nov., it seems to be “consolidating” somewhat. Hard to call a 10% intraday move part of consolidation. But thing sure does move!
ZM
#ShortPuts – Pulled back nicely. Selling below the 200 day and just outside the expected move. Should have at least 3 roll opportunities before earnings. May add a call side sale on a bounce…
Sold ZM JAN 29 2021 295.0 Put @ 5.10
NIO
Sorry, should have posted these as they occurred.
121/29 STO 40 put for 1.07
today BTC 40 p for .53, then Bought NIO at 46.1 & STO 15 Jan CC for 1.01
CB 44.46, basically breakeven
SPCE’ed out.
BTC SPCE Dec-31-2020 $30 #ShortPuts @5.80. Was STO @5.88.
End of year Risk Reduction, buying power regained, basically break-even on this round after covering fees.
TQQQ, BTC December 31, 125…
TQQQ, BTC December 31, 125 puts at .02, sold at 1.45
SPY
Hi folks. I’m new to the bistro, but I’ve been tinkering with options trading for awhile, and I finally decided to start posting some of my trades in case anyone is interested.
This one is a bearish put butterfly that makes money if SPY pulls back. It also would have been profitable if SPY had gone nowhere after I put it on, but the market has been slowly climbing and now it’s nearing its upper expiration breakeven strike. If I were putting this on today I would use higher strikes, so that the trade would be reasonably profitable even if SPY expired right where it is now.
Currently, the position is showing a loss of $89. If SPY continues on up to the point where my loss reaches $250, I will add another butterfly at higher strikes to widen the tent. I will also try to avoid dealing with expiration week gamma by planning to close the week before if I can get any kind of decent profit.
Edit: Thanks to Hawk’s questions, I changed the plan for adjusting if SPY continues up. See the comments below.
Here’s the position:
#Bearish Butterfly
SPY Jan 15th (Monthly)
334 / 357 / 380 Put Butterfly BTO for 7.20
Max Profit $1580, Target Profit $500
Max Loss $720, “Take Action” Loss $250
I’ll update as I manage or close the position. If any of you are experienced butterfly traders I would appreciate any advice! Thanks!
FDX CC / VXX Rolled
#coveredcalls
$FDX STO 12/31 265 call at .80
#shortputs
$VXX BTC 12/31 20.50 put and STO 1/8 20 put at even
VXX Put Rolls
Using the almost 1 point move up in VXX to bring in more cash and improve the strike prices on a few, for one more week.
Bought to close VXX 12/31/2020 22.50 Puts / Sold VXX 01/08/2021 22.50 Puts @ 0.23 Credit.
Bought to close VXX 12/31/2020 21.50 Puts / Sold VXX 01/08/2021 21.50 Puts @ 0.33 Credit.
Bought to close VXX 12/31/2020 20.50 Puts / Sold VXX 01/08/2021 20.00 Puts @ 0.05 Credit plus a 0.50 lower strike.
Bought to close VXX 12/31/2020 20.00 Puts / Sold VXX 01/08/2021 19.50 Puts @ 0.10 Credit plus a 0.50 lower strike.
(This is the first chance to rolldown VXX in the money Puts that I’ve seen in a couple of weeks)
VXX Calls
Since there are no decent premiums for this week, selling some for next week.
Sold VXX Jan 08 2021 23.0 Calls from $0.25 up to $0.35.
Sold VXX Jan 08 2021 24.0 Calls from $0.22 up to $0.27.
Sold VXX Jan 08 2021 25.0 Calls from $0.19 up to $0.25.
VXX topped out at 17.76 so far today.
TQQQ, BTC December 31, 130…
TQQQ, BTC December 31, 130 puts at .02, sold at 3.50, I am still waiting to get filled on more positions for this week.
QS
#ShortPuts – Out yesterday and back in today…
Sold QS JAN 15 2021 60.0 Put @ 2.20
SQ Feb
Sold $SQ 2/19 180 put @ 5.00
SPX 7dte
#SPX7dteLong Bought to Open $SPX Jan 6th 3705/3725-3735/3755 iron condors for 17.05, with SPX at 3730.
TSLA
BTC on GTC order at 50% of max profit….TSLA 19 FEB21 425 PUT @4.95 with the stock @ 666.69….This was STO on 12/22 @10.25….#ShortPuts
PLTR WIX MARA VLO CC / MRVL Put
#coveredcalls
$PLTR STO 12/31 26 call
$WIX BTC 1/15 290 call and STO 1/15 280 call at 1.40 added credit
$MARA STO 1/15 14 call at 1.60
$VLO BTC 12/31 58 call and STO 1/8 56.5 call at .95 added credit
#shortputs
$MRVL STO 1/8 46 put at .70
LABU
#ShortPuts – Welcome back to the game ol’ buddy. Starter position outside the expected move and down at the 200ma and lowest available strike. Hope to add…
Sold LABU FEB 19 2021 60.0 Put @ 2.10
Closing DOCU
Bought to close $DOCU 1/15 185/195/260/270 iron condor @ 1.23. Sold for 2.95 on 12/9.
SPX trades
#shortputspread TTD Sold Jan. 15,…
#shortputspread TTD
Sold Jan. 15, 795/800 for 1.45. TTD is at 841, down about 80 today.
NVDA TSLA
#ShortPuts – A little risk reduction…
Bought to Close NVDA JAN 08 2021 475.0 Put @ 1.80 (sold for 5.00)
Bought to Close TSLA JAN 08 2021 500.0 Put @ .97 (sold for 4.90)
Dec 31 $3250 Call Vertical Roll to $3310, $60 increase in strike price, Debit $33.48 Stock at $3312
DKNG CC
#coveredcalls
$DKNG STO 1/15 55 call at 1.35
#fallingknifeLAZR STO 15 Jan BuPS…
#fallingknifeLAZR
STO 15 Jan BuPS 30/25 for 2.50
WBA Covered Call
Sold 1 WBA 01/08/2021 41.0 Covered Call @ 0.69.
Replaces a similar call that expired Friday.
COUP Put Closed
#shortputs
$COUP BTC 12/31/280 put at .05. STO on 12/8 at 5.20. Thank you @fuzzballl
#fallingknifeOSTK put roll BTC 8…
#fallingknifeOSTK put roll
BTC 8 Jan 52.5P, STO 22 Jan 51.5 for 1.15 credit
MSFT TQQQ LAZR RIOT Puts Closed / RIOT Put
#shortputs
$MSFT BTC 12/31 210 put at .10. STO at 1.30 on 12/16
$TQQQ BTC 1/15 80 put at .15. STO at 2.02 on 11/19 Thank you @jsd501 and @fuzzballl
$TQQQ BTC 12/31 142 put at .12. STO at 1.45 on 12/18 Thank you @jsd501
$LAZR BTC 1/15 20 put at .20. STO at 1.53 on 12/8 Thank you @fuzzballl
$RIOT BTC 1/15 7.5 put at .10. STO at 1.13 on 12/9
$RIOT STO 12/31 15 put at .55.
#coveredcalls OMC Sold Jan. 15,…
#coveredcalls OMC
Sold Jan. 15, 65 call for .90. Bought 100 shares on Dec. 15 for 63.71 for the .65 dividend.
TDOC
#ShortPuts – Back in at recent lows and at least 3 weeks before earnings…
Sold TDOC JAN 22 2021 180.0 Put @ 3.70
#closing #shortstrangles #shortputs DKNG FCEL…
#closing #shortstrangles #shortputs DKNG FCEL
DKNG Dec. 9, sold Jan. 15, 40/65 strangle for 2.10. bought today for .62
FCEL Dec. 2, sold a Jan. 15, 5.5 put for .73, bought today for .14
QS
#ShortPuts – I’ll take the quickie…
Bought to Close QS JAN 8 2021 60.0 Puts @ .50 (sold for 2.30)
#fallingknifeDKNG Perhaps not a “falling”…
#fallingknifeDKNG
Perhaps not a “falling” knife, more of a stumble.
STO BuPS, 5 Feb, 48/45 for 1.25
BA, BTC February 200 put…
BA, BTC February 200 put at 7.95, sold at 8.33, Just reducing risk.
NFLX Iron Cockroach
NFLX @ $509.
STO NFLX Jan 22, 510 / 520 Call credit spread + 505 / 485 Put credit spread @$13.10 credit for the combo.
Downside max loss $6.90 ($20 spread width – $13.10 credit received). Downside breakeven NFLX @ $490.
No risk to the upside – keep ($13.10 – $10.00) $3.10 residual credit.
TWLO, BTC, January 15, 240…
TWLO, BTC, January 15, 240 put at .31, Sold at 5.40, Minervini thinks the market is too frothy and I agree. Not that my opinion really counts. A lot of breakouts are not working so I want to be cautious.
#coveredcallsCCL ROLLED 15 Jan 25…
#coveredcallsCCL
ROLLED 15 Jan 25 call to 19 Feb 27.5 call for .38 credit
Cost basis now 18.03
Stock at 21.88
AAL Covered Call
Sold 1 AAL 01/08/2021 17.00 Covered Call @ 0.45.
This replaces the 17.0 Call that expired Friday.
Opening Transaction PTON BuPS Credit $1.32, Stock at $58.20
GILD Put Ladder
Keeping my Put Ladder running.
Sold to Open 1 GILD Jan 08 2021 55.5 Diagonal Put @ $0.52.
Replaces a GILD 56.50 Put that expired Friday.
#DoubleDip
TQQQ
Sold to Open TQQQ 12/31/2020 195.00 Diagonal Calls @ 0.35.
Replacing the short 185.00 Diagonal Calls that Expired Friday and paired with short 150.00 Puts sold Friday.
#DoubleDip
COUP, BTC January 15, 240…
COUP, BTC January 15, 240 put at .25, Sold at 2.65
Assigned on EW Covered Call
Not sure it was the right time to let the shares go…..but had to manage margin creep up do to “roll ups” on Friday.
https://coveredcallswithjeff.wordpress.com/2020/12/28/assigned-on-ew-covered-call-profit-of-3498-in-63-days-roi-of-8-8-or-51-annualized/
