BTO some shares of the stock at 44.00
Monthly Archives: January 2021
TQQQ
BTC January 15, 110 puts at .02, sold at 2.52 and that is all for this week.
Closing Mar LABU
Taking most of the profit with still over 2 months to go. Bought to close $LABU 3/19 40 puts @ .33. Sold for 2.30 on 11/23 and 11/24. Thanks for the idea @jsd501.
#rolling #coveredcalls OXY Rolled Jan….
Rolled Jan. 15, 24 call to Jan. 22 for .58. OXY is up 1.70 to 24.04.
GLD
#shortputs
Trying to gradually fill a gold position:
STO GLD Feb 19th 165 Put @ 1.01
TSLA pre earnings
#ShortStrangles – Selling over 1.5x the expected move on the downside and 2.5x the expected move on the upside and the week before earnings with a 3 day weekend. Rollability into earnings will be fantastic. Wouldn’t mind this taking a little heat to the downside for a better earnings sale the following week.
Legged in:
Sold TSLA JAN 22 2021 725.0/1050.0 Strangle @ 6.80
SPY Rolls
Bought to Close 1 SPY Jan 13 2021 372 Call / Sold to Open 1 SPY Jan 15 2021 372 Call @ 0.50 Credit.
Bought to Close 1 SPY Jan 13 2021 375 Call / Sold to Open 1 SPY Jan 20 2021 377 Call @ 0.32 Credit plus a 2 point bump in the short strike.
ZM
#ShortPuts – Taking another one a couple weeks early.
Bought to Close ZM JAN 29 2021 295.0 Put @ 1.35 (sold for 5.10)
TSLA
#ShortStrangles – I’m with @Ramie here. Taking it a couple days early. Looking to try again next week.
Bought to Close TSLA JAN 15 2021 725.0/980.0 Strangle @ 1.15 (sold for 7.10)
Taking profits on TSLA
Bought to close 1/15 725/980 strangle @ 1.42 for about 80% of the max profit. Thanks for the great trade @fuzzballl!
ABNB Early Close
BTC $ABNB Jan-22-21 128/137 #BuPS @0.12 Debit. Was sold @1.24 on 1/11. #BirdInTheHand
Still holding Jan-29 and Feb-05 125/135 #BuPS.
SPX trades
#SPX7dteLong. Badly legged out of both sides, netted 8.20 total. Condors bought for 16.10 last Thursday.
#SPX1dte Expected to expire: condors sold yesterday for 1.00
#closing #shortputs CHWY Dec. 30,…
#closing #shortputs CHWY
Dec. 30, sold a Feb. 19, 75 put for 1.74 after CHWY went from 108 to 89 in 9 days. It went to 86 the next day, but is up to 112 today. I bought the put for .28.
#coveredcalls OXY Sold Feb. 19,…
#coveredcalls OXY
Sold Feb. 19, 22 calls@2.11, stock at 22.30.
BIDU Put
#shortputs
$BIDU STO 1/15 227.5 put at 3.55.
NFLX SNOW
#ShortPuts – Happy to take these on the bounce to get this account back to cash. Soon to be all TOS finally!
Bought to Close NFLX JAN 15 2021 490.0 Put @ 1.35 (sold for 2.50)
Bought to Close SNOW JAN 15 2021 290.0 Put @ 3.70 (sold for 4.50)
NNDM Put Roll / MARA Put Closed
#shortputs
$NNDM BTC 1/15 10 put and STO 2/19 10 put at added credit of 1.51
$MARA BTC 1/15 13 put at .05. STO at 1.60
AAXN,
STO February 130 puts at 4.20
LAZR VLDR
#ShortPuts – With the weeklies and the improving liquidity I’m concentrating all my LIDAR power on LAZR….mainly two to three weeks out.
Bought to Close LAZR JAN 15 2021 28.0 Puts @ .18 (sold for .80)
Bought to Close LAZR JAN 22 2021 27.0 Puts @ .70 (sold for 1.30)
Bought to Close LAZR FEB 19 2021 20.0 Puts @ .48 (sold for 1.25)
Bought to Close LAZR FEB 19 2021 22.5 Puts @ 1.05 (sold for 2.10)
Sold LAZR JAN 29 2021 26.0 Puts @ 1.05 and 1.15
Sold LAZR FEB 5 2021 25.0 Puts @ 1.25
Small loss to move buying power to LAZR:
Bought to Close VLDR FEB 19 2021 17.5 Puts @ .92 (sold for 1.00)
Bought to Close VLDR FEB 19 2021 20.0 Puts @ 1.92 and 1.95 (sold for 1.75)
Now all set and looking to add on dips…
Question about Space Trip hedge (STT)
I was modeling the STT trade in TOS and everything looks fine until I introduce IV increase. I would expect IV to increase in a case of a 10+% sell-off. With the IV increase of 10 points, the value of the STT is cut in half. This is for a well aged position, so a new position would be a loser anyway. This does not look like a good hedge.
I have noticed that presentations about STT definitely ignore ( if not refuse) to include the IV increase. I watched a number of them and every time all modeling is done without taking IV into consideration.
Am I missing something in the TOS model?
PTON
Didn’t think this was going to fire, but it did late today:
BTC $PTON Jan-15-2021 130 puts @0.12 debit. Was STO @1.32 on Jan-05.
SPY SLB WFC CINF MRO
Pretty extraordinary moves for the SPY and some mostly sleepy stocks just in the last 5 days
SPY from 368 to 381
SLB from 21.98 to 26.73
WFC from 29.46 to 34.52
MRO from 6.81 to 8.38
CINF from 82.62 to 93.83
I’ve been fading most of these movers with Bear Call diagonal spreads. The next few weeks should be interesting.
Markets
Could be something or could be nothing
Morgan Stanley Spots An Extremely Rare Market Signal Which Precedes Selloffs
The percentage of NYSE stocks above 200-day moving averages has surpassed 90% for the first time since 2009. This rare event has happened only five times using weekly data going back to 1974.
https://www.zerohedge.com/markets/morgan-stanley-spots-extremely-rare-market-signal-which-precedes-selloffs
Not everyone agrees: without looking at the data, Bank of America notes that the 2009 and 1975 signals occurred after “generational lows” for the SPX, and explains – somewhat hopefully – that while “market corrections are a part of the life of an investor, if history is any guide, this move above 90% for the % of stocks above 200-day MAs is less likely a sign of a major top and more likely longer-term bullish confirmation after a period of economic and market stress.”
One of the two banks is wrong, and since nobody likes unnecessary suspense, we will know who is right and who is wrong in just a few days.
PINS
#BullPutSpreads – Riding with jsd501 on this one. Playing for a breakout with very limited downside. Could get stock or roll into earnings. Staying small…
Sold PINS JAN 29 2021 80.0/75.0 Bull Put Spreads @ 3.20
SPX trades
#SPX7dtelong Bought to Open $SPX Jan 19th 3770/3790-3800/3820 iron condors for 16.75, with SPX at 3796. This is next TUESDAY expiration due to the Monday holiday.
#SPX1dte trade to follow
PINS,
Both SMM and Minervini have this on their buy list today so I sold the January 29, 72 puts at 2.95 with earnings on February 5th.
BLNK
#ShortPuts – Got this from a friend. Taking a small starter for first time in it. Hard to say when earnings will be….could be anywhere from mid Feb to early Apr.
Sold BLNK FEB 19 2021 25.0 Puts @ 1.03
TQQQ
#ShortPuts – Filled while I was out earlier. Adding to the ladder.
Sold TQQQ FEB 19 2021 115.0 Put @ 2.40
OXY Iron Condor
Sold $OXY 2/19 16/19/25/28 iron condor @ 1.00. Collecting 1/3 the width of the strikes. Stock at 22.16.
ABNB Roll
BTC Jan-15-2021 $ABNB 125/135 #BuPS @0.15 – was STO @2.00 Jan-05-2020
STO Jan-29-2021 $ABNB 125/135 @1.5
Holding Jan-22-2020 $ABNB 128/137.
TQQQ,
STO February 19, 115 puts at 2.35
TQQQ,
In my IRA, STO February 19, 120 puts at 2.72
COUP
#ShortPuts – Making a little room for earnings season.
Bought to Close COUP JAN 29 2021 290.0 Put @ 1.80 (sold for 4.60)
OSTK Puts Closed / RKT Puts Rolled (not taking off)
#shortputs
$OSTK BTC 1/15 50.5 put at .80. STO at 4.46. Thank you @fuzzballl
$RKT BTC 1/15 21.50 put and STO 1/22 21 put at cost of .15 but would gain .50 if assigned.
TSLA
REGN
#ShortStrangles – Coming out of a squeeze but bumping into resistance. I’m still getting out of the way of the upside. Closing call and rolling put side up. Earnings the week after this trade.
Bought to Close REGN JAN 29 2021 550.0 Call @ 3.70
Rolled REGN JAN 29 2021 460.0 Put to JAN 29 2021 480.0 Put @ 2.95 credit
This leaves 480 put @ 5.45
TQQQ,
BTC January 15, 90 puts at .02, sold at 2.75
NFLX
#ShortStrangles – Looking weak so taking profits. Earnings a week from today.
Bought to Close NFLX JAN 15 2021 485.0/585.0 Strangle @ 4.81 (sold for 8.30)
TQQQ,
STO February 19,130 put at 4.20
TQQQ,
BTC January 15, 85 puts at .02, sold at 2.40
JD Puts
#shortputs
$JD STO 1/29 85 puts at 1.83
ZM
#ShortPuts – This is in the account I’m getting ready to move so playing it safe…
Bought to Close ZM JAN 15 2021 320.0 Put @ 2.95 (sold for 4.00)
TQQQ, STO February 12, 105 puts at 1.38
STO February 19, 110 puts at 2.15
#rolling #coveredcalls #shortputs AAL GPS…
#rolling #coveredcalls #shortputs AAL GPS GPRO
AAL rolled Jan. 15, 20 put to Feb. 19 for .15 AAL is near 15.
GPRO rolled Jan. 15, covered 9 call to Feb. 19 for .68 GPRO is up .97 to 9.24
GPS rolled Jan. 15, covered 21.50 call to Feb. 19, 22 call for .70 GPS is up .83 to 22.25
TQQQ
#ShortPuts – Adding to the ladder…
Sold TQQQ FEB 19 2021 110.0 Put @ 2.10
MRVL Strangle / MARA Put
#shortstrangles
$MRVL STO 1/15/2021 51/52 strangle at 1.85
#shortputs
$MARA STO 1/15 22 puts at 2.04
TSLA
#ShortStrangles – Selling the put side a little tighter than the call side since it’s down today. Well outside the expected moves and two weeks before earnings.
Sold TSLA JAN 15 2021 725.0/980.0 Strangle @ 7.10
REGN
#ShortStrangles – Filled on the call side legging into a short strangle.
Sold REGN JAN 29 2021 550.0 Call @ 2.00
460/550 @ 6.20 a week before earnings.
SPX trades
#SPX7dteLong Bought to Open $SPX Jan 15th 3790/3810-3820/3840 iron condors for 16.50, with SPX at 3815.
#SPX1dte Expected to expire: $SPX Jan 11th 3700/3720-3870/3890 condors, sold Friday for 1.00.
PENN Puts
#shortputs
$STO 1/15 93 puts at 1.16
Closing NVDA
Bought to close $NVDA 2/5 435 put @ .90. Sold for 4.40 on 1/6. Thanks for the idea @fuzzballl.
LULU
TDOC Put Closed / NVDA Call
#shortputs
BTC 1/15 175 put at .10. STO at $2. Thanks @fuzzballland @thomberg1201
#coveredcalls
$NVDA STO 1/15 570 call at 5.93
NVDA
Roll $NVDA Jan-15-2021 485/495 // Jan-22-2021 505/515 @1.4o Credit
TQQQ, STO January 29, 125…
TQQQ, STO January 29, 125 puts at 1.10
REGN
#ShortPuts – Might be levelling off out of it’s dive. Selling at the expected move and the week before earnings. Order in to leg into a strangle on a bounce.
Sold REGN JAN 29 2021 460.0 Put @ 4.20
ABNB
STO $ABNB Jan-22-2021 128/137 #BuPS @1.25
(Small oops on the spread width)
TQQQ, BTC January 15, 80…
TQQQ, BTC January 15, 80 puts at .02, sold at 2.10
NIO Puts
#shortputs
$NIO STO 1/15 60 puts at 2.16
Summary of NIO CC through 115 Days
https://coveredcallswithjeff.wordpress.com/2021/01/10/covered-call-on-nio-generating-unrealized-gain-of-23447-in-115-days-129-or-410-annualized/
Summary of ATEC CC + Naked Put
https://coveredcallswithjeff.wordpress.com/2021/01/10/atec-position-covered-call-naked-put-generating-positive-results-unrealized-gain-of-1687-in-28-days-roi-28-9-or-377-annualized/
Good start to 2021…..at least for one week!
https://coveredcallswithjeff.wordpress.com/2021/01/10/ib-account-week-ending-1-8-21-17979-or-4-19-return/
MDLZ DiagBFly – analysis of a campaign
Original Trade initiated on June 17, 2020:
$MDLZ @ $52.74
BTO 20 MDLZ Jan 22: 40 Put / 65 call long strangle @ $4.65 (total cost of trade = $9,300).
583 days left to sell more premium.
Analysis:
Closed out position on January 8, 2020, MDLZ trading at $58.19.
Days in Trade: 205 – 29 weekly option periods.
Buy transactions: 34 – Bought premium total: $59,618
Sell transactions: 34 – Sold premium total: $67,873
Note: more trades than weekly option periods reflect making ‘scalp’ trades within the week.
Net premium collected: $8,255 on the 20 contract original trade.
% return for 205 days = $8,255 / $9,300 = 89%. (my thinking on demonstrating returns, others may suggest alternatives).
Points for reflection: Early on it was clear that the premiums were not large enough to generate enough $returns – I mentioned after a few months I was going to stop this strategy and move into higher priced underlyings – IBB in this particular case. Despite this, I carried on mainly to practice discipline on rigorously rolling and adjusting week after week. I’m glad I did, because it becomes a habit, and one does not really care about how the underlying moves – you just intuitively know where to roll to, even at the expense of rolling out in time.
EWZ was my starter using this Diagonal Butterfly approach (I took it from the seminal work on options by Larry McMillan).
The percentage returns on capital deployed are good because the LEAP strangle was an OTM structure. My current preference is for an ITM LEAP strangle strategy – mainly because I think it would handle a strong down move better – however it is obviously ties up a lot more capital. The jury is still out on this.
The whole idea of the strategy was to deploy capital with inbuilt protection, hoping to generate decent returns but able to handle a defined amount of volatility. To that extent it worked. The strategy continues in other underlyings: EWZ, FAS, IBB, XLK, XLY. Higher priced stocks that generate more premium which I feel gives more flexibility on the rolling strategy (the key part of managing the campaign).
Expiration
#optionsexpiration
$NVDA 545 call
$PEP 148 call
$NUGT 90 call
$TQQQ 130 put
$NIO 54 put
$NIO 56.5 put
#assignment
$NIO 55 call
$PLTR 25.5 put
Expire
TSLA Jan-01-2021 680/690 #BuPS Was STO @1.25 1/4/2021.
PSTH FVRR LAZR Puts Closed / NFLX BUPS Partial Close
#shortputs
$PSTH BTC 1/15 25 put at .05. STO at 1.60
$FVRR BTC 1/15 210 put at 1.80. STO at 11.70
$LAZR BTC 1/15 25 put at .10. STO at 3.30
#bups$NFLX BTC 1/15 470/480 BUPS at .60. STO at 3.40
SPX trades
#SPX1dte Sold to Open $SPX Jan 11th 3700/3720-3870/3890 iron condors for 1.00, with SPX at 3816, IV 11.3%, deltas -.06, +.06.
VLDR
#ShortPuts – Gave up on getting the rest of the 17.5s. Added a little higher.
Sold VLDR FEB 19 2021 20.0 Puts @ 1.75
VXX Diagonal Strangles
Sold to open VXX 01/15/2021 15.50 Puts @ 0.22
Sold to Open VXX 01/15/2020 19.50 Calls @ 0.29
Sold to open VXX 01/15/2021 15.00 Puts @ 0.09
Sold to Open VXX 01/15/2020 20.00 Calls @ 0.26
SLB – two Profits
Bought to close SLB 01/08/2021 25.0 Calls @ 0.01 – Sold this week at 0.38.
Sold to close SLB 01/15/2021 25.0 Calls @ 0.48 – Bought to open a long time ago @ 0.09 as part of an old Diagonal Call Spread
VXX – Diagonal strangle covered
Bought to close 01/08/2021 19.00 Calls @ 0.01
Bought to close 01/08/2020 16.00 Puts @ 0.01.
Looking to reload for next week.
Closing today’s SPX
Bought to close the adjusted position, now 1/8 3765/3790/3805/3830 iron condor @ 9.215 for a modest loss.
Original premium from 3640/3665/3805/3830: 4.05 credit
Rolled put spread side to 3760/3735: 2.00 credit
Rolled put spread side to 3790/3765: 2.30 credit
Total credit taken in: 8.35
Debit to close: 9.215
Loss: .865
Considering where /ES was overnight, I’m lucky to be out for this close to breakeven.
#closing #ironcondor RCL Dec. 7,…
#closing #ironcondor RCL
Dec. 7, sold Jan. 15, 60/65/95/100 for 1.53, bought today for .20
LULU
NIO T Puts / BIDU PLTR MARA Calls Rolled
#shortputs
$NIO STO 1/8 56.50 put at .50. Replacing stock that might get called away today
$T STO 2/19 29 put at 1.05.
#coveredcalls
$BIDU BTC 1/8 215 call and STO 1/15 222.5 call at added credit of .30. Stock at 220.24
$PLTR BTC 1/8 25 call and STO 1/15 26.5 call at debit of .24. Stock at 25.92
$MARA BTC 2/19 20 call and STO 6/15 30 call at added credit of 1.33. Stock at 26.63.
Options Bistro 