VIX

30.82 high today before pulling back and closing down on the day.
Pretty nice double top and not quite as high as yesterday’s 31.16 peak

Expirations

#optionsexpirations
$GME 140/150 BECS
$GME 150/160 BECS
$MRVL 52.5 call

#assignment
$T 29.50 put
$NVDA 550 put

GME calendar

$GME Feb-26-21 100/Mar-05-21 100 Put Calendar was bought @15.45 yesterday.

First exit @$20, and the rest got stopped out at 16.5 when the stock hit below 88.

GME closed at 102. Would have been a nice pin if I had held onto them. Woulda-coulda…

Have a nice weekend everyone!

OptionsExpiration

Expired:
SLB 02/26/2021 28.50 Diagonal Calls
SLB 02/26/2021 29.50 Diagonal Calls
SPY 02/26/2021 386.00 Diagonal Call
SPY 02/26/2021 387.00 Diagonal Calls
SPY 02/26/2021 390.00 Diagonal Call
SQQQ 02/26/2021 16.50 Covered Call
WFC 02/26/2021 38.00/40.00 Bear Call spreads

VXX 02/26/2021 18.00 Diagonal Calls
VXX 02/26/2021 19.00 Diagonal Calls
VXX 02/26/2021 19.50 Diagonal Calls
VXX 02/26/2021 23.00 Diagonal Calls

AMC 02/26/2021 6.50 Diagonal Puts
AMC 02/26/2021 6.00 Diagonal Puts

Assignments:
None

TLRY

Rolled down my last short put for this week.
Bought to close 1 TLRY Feb 26 2021 26 Put / Sold to Open 1 TLRY Mar 05 2021 25 Put @ 0.40 Credit

TLRY Win-Win

Closed out another diagonal spread I put on with profits on both sides
Bought to close TLRY 02/26/2021 26.0 Short Calls @ 0.01 – Sold @ 0.90 (avg price) on 02/23
Sold to close TLRY 04/16/2021 70.0 Long Calls @ 0.93 – Bought @ 0.61 (avg price) on 2/23

SPY Put Rolldown

Bought to close 1 SPY Feb 26 2021 377.0 Put at $0.01. Sold @ 1.51 on 02/23.
Sold to Open 1 Contract SPY Mar 05 2021 370.0 Put @ 1.43.
#DoubleDip Sale on my long March 150 Put and 7 points lower

OSTK PLTR SNOW SOXL UVXY

#ShortPuts #CoveredCalls – A little bit of everything today.

OSTK: Rolling out and down a week.
Rolled OSTK FEB 26 2021 77.5 Put to MAR 5 2021 76.0 Put @ .50 credit

PLTR: Rolling out one or two weeks.
Rolled PLTR FEB 26 2021 27.5 Put to MAR 5 2021 27.0 Put @ .02 credit
Rolled PLTR FEB 26 2021 28.0 Put to MAR 12 2021 27.5 Put @ .36 credit
Rolled PLTR FEB 26 2021 29.0 Put to MAR 12 2021 28.5 Put @ .20 credit
Rolled PLTR FEB 26 2021 30.0 Put to MAR 12 2021 30.0 Put @ .55 credit
Rolled PLTR FEB 26 2021 30.5 Put to MAR 12 2021 30.0 Put @ .07 credit

SNOW: Taking assignment and selling DITM covered calls for max downside earnings protection.
Sold SNOW MAR 5 2021 240.0 Call @ 25.50
Sold SNOW MAR 5 2021 240.0/400.0 BeCS @ 25.00 (had to spread it in an IRA)

SOXL: Rolled to a strike that’s 15:1 split friendly.
Rolled SOXL MAR 19 2021 515.0 Put to MAR 19 2021 525.0 Put @ 4.00 credit

UVXY: Covered calls…still holding the hedge picking up some more credit.
Rolled UVXY FEB 26 2021 8.5 Calls to MAR 5 2021 8.5 Calls @ .20 credit

AMC Win-Win

Closed out the diagonal spread I put on yesterday with profits on both sides
Bought to close AMC 02/26/2021 8.0 Short Calls @ 0.13 – Sold @ 0.79
Sold to close AMC 03/26/2021 12.0 Long Calls @ 0.91 – Bought @ 0.77

SPX trades

#SPX1dte Sold to Open $SPX March 1st 3665/3685-3920/3940 iron condors for 1.40, SPX at 3829, IV 19.5%, deltas -.06 +.06

#SPX7dteLong Expiring at max credit of 20.00: Feb 26th 3885/3865 put spreads. Condors bought for 16.35 on Monday

#Speculation Bought to Open $SPX March 5th 3700/3680 put spreads for 2.65.

SPY Rollup

After several rolls laterally I’m finally able to roll this one up.
Bought to close 1 SPY Feb 26 2021 377.0 Call / Sold to Open 1 SPY Mar 03 2021 380.0 Call @ 0.38 Credit

GME 3/5

Sold $GME 3/5 165/175 bear call spread @ 1.50

PLTR ALB WATT ARKK SPY Puts Closed / ARKK TQQQ Puts / MARA Calls Closed / NNDM Put Roll

#shortputs
$PLTR BTC 2/26 28 put at 4.50. STO at 1.19
$PLTR BTC 2/26 29 put at 6.00. STO at 1.49
$PLTR BTC 2/26 25 put at 1.26. STO at 1.20
$ALB BTC 3/19 145 put at 3.80. STO at 10.00
$WATT BTC 3/19 7.50 put at 3.30. STO at 2.70
$ARKK BTC 2/26 125 put at .60. STO at 2.95 Thank you @fuzzballl and @ramie77
$SPY BTC 3/19 135 put at 1.00. STO at 3.59
$ARKK STO 3/19 104.96 put at 1.90
$TQQQ STO 4/16 60 put at 1.90
$TQQQ STO 4/16 60 put at 1.90
$NNDM BTC 3/19 17.50 put and STO 5/21 15 put at cost of 1.43 but would gain $2 if assigned.

#longcalls
$MARA STC 3/19 16 calls at 16. BTO at 4.90.

SLB Call roll

Bought to close SLB Feb 26 2021 27.5 Calls / Sold to Open SLB Mar 05 2021 28.5 Calls @ 0.12 Credit plus another point higher for next week.

I’m expecting my SLB 28.50 and 29.50 short calls for today to expire.

VXX Call Rolls

Even though today’s VXX calls would have expired I couldn’t pass up the great premiums for next week while waiting for this weeks calls to roll off.
Bought to close VXX 02/26/2021 20.0 Calls @ 0.09. Sold these @ 0.23 earlier this week.
Bought to close VXX 02/26/2021 21.0 Calls @ 0.06. Sold these @ 0.19 earlier this week.
Bought to close VXX 02/26/2021 22.0 Calls @ 0.04. Sold these @ 0.15 earlier this week.

Replaced all the above with options 2 points higher in strike. (Hopefully that is enough)
Sold VXX 03/05/2021 22.0 Calls @ 0.61
Sold VXX 03/05/2021 23.0 Calls @ 0.58
Sold VXX 03/05/2021 24.0 Calls @ 0.56.

VXX peaked at 17.29

PTON

Roll $PTON Feb-26-2021 130 #CoveredCalls // Mar-05-2021 @1.15 Credit.
Roll $PTON Mar-05-2021 130/140 #BuPS // Mar-19-2021 129/139 #BuPS @1.34 Debit.

VXX Puts closed

Bought to close VXX Feb 26 2021 15 Puts Limit at $0.01. Sold these on a rolldown last Friday at 0.50

SPX 1-dte

#SPX1dte Bought to close $SPX 3700/3680 put spreads for .35. Condors sold yesterday for 1.35. Protecting from any possible big drop today.

ABNB ENPH

BTC $ABNB Mar-05-2021 150/160 #BuPS @0.20. Was STO @1.85 on 2/8.
STO $ENPH Mar-19-2021 195 #CoveredCalls @5.5. Basis now 178.95 Stock at a measly 164.5.

TQQQ,

BTC Feb. 26, 70 puts at .02, sold at 2.65

Doing my best to pare, protect and figure out how to protect the capital and make money in a down market…..

https://coveredcallswithjeff.wordpress.com/2021/02/26/trying-to-protect-versus-making-more/

Downside Warning in effect

#VIXIndicator Expect lower levels in the coming days or weeks.

Last DW fired on Jan 27th. The SPX low was only two days later and we rebounded from there. So it was brief.
The one before that was on Sept 3, 2020. The SPX low was 3 weeks later on Sep 24th.

TLRY

Rolled all but 1 of my TLRY short puts to next week.

Also put on some bear call spreads to lessen the pain a bit.

Sold 02/26 26.0 Calls @ 27.0 Calls while buying April 70 calls to hedge.

Either my remaining put will expire or the calls will and I’ll roll what I need to tomorrow afternoon.

VIX closed above 29

Up 33 % and Hit 31.16

AMC

Sold AMC Feb 26 2021 6.5 Puts @ 0.10 & AMC Feb 26 2021 6.0 Puts @ 0.05 against some left over Jun 2.0 long puts I already own.

Also Sold Feb 26 2021 8.0 Calls while buying AMC March 26 12.0 Calls @ 0.02 Credit.

So I have 6.0/8.0 and 6.5/8.0 short strangles expiring tomorrow.. Waiting to see what kind of opening we get Friday.

SPX 1-dte

#SPX1dte Sold to Open $SPX Feb 26th 3680/3700-3920/3940 iron condors for 1.35, SPX at 3836, IV 27.5%, deltas -.06 +.05

SPY

#ShortPuts – Add to the bottom of the ladder below the 200 day.

Sold SPY APR 16 2021 330.0 Put @ 3.35

VXX Calls Again

Bought to open VXX Mar 26 2021 32.0 Calls / Sold to Open VXX Mar 05 2021 20.5 Calls @ 0.07 Credit.
VXX is at 16.65.

I’ve already rolled most of my short puts to next week (way to early) but I’m liking my chances that my short VXX 02/26/2021 15.0 Puts will expire. That didn’t look likely this morning.

SPX 7-dte

#SPX7dteLong Bought to Open $SPX March 3rd 3835/3855-3865/3885 iron condors for 17.95, with SPX at 3857.

GME Groundhog Day

Taking another bite here. Sold 2/26 180/190 bear call spread @ 2.10. Short leash again.

SPY

#ShortPuts – Add to the bottom of the ladder below the 200 day.

Sold SPY APR 16 2021 335.0 Put @ 3.20

SPY

#ShortPuts – Adding down by the 200 day.

Sold SPY APR 16 2021 350.0 Put @ 4.60

LABU

#ShortPuts – Added…a little early on this one.

Sold LABU APR 1 2021 75.0 Put @ 2.80

TQQQ,

STO March 19, 110 calls at 1.43, I have put exposure and it looks like the bull market is over.

VXX Calls

Despite the 30% move in the VIX today I am still expecting all my short VXX Calls for this week to expire tomorrow or be covered at a penny.
So I’m tiptoeing into next week’s expiration.
Bought to open VXX Mar 26 2021 32.0 Calls / Sold to Open VXX Mar 05 2021 19.0 Calls @ 0.04 Credit.

Once I start covering this week’s calls to free up some buying power, I’ll be selling more for next week.

VXX at 16 right now

GME getting out

Bought to close $GME 150/160 bear call spread for 3.83, a loss of 1.73.

Upside Warning canceled

#VIXIndicator The $VIX spike above 26.67 just killed the Upside Warning. We’ll go into a Downside one if we close above it.

TQQQ,

BTC March 5, 65 puts at .34, Sold at 2.65, just want to take some risk off the table.

UVXY Put Rolldown

Bought to close UVXY Feb 26 2021 9.0 Puts at $0.51. Sold these @ 0.63 last Friday.
Sold to Open UVXY Mar 05 2021 8.5 Puts @ 0.56 to replace them.

LULU AMC

From a little earlier today:

Rolled $AMC Feb-26-2021 10 #CoveredCalls // Mar-05-2021 $12 @0.25 Credit Earnings Mar-03
Rolled $LULU Feb-26-2021 325/335 #BuPS // Mar-12-2021 @1.30 Debit
STO $LULU Mar-12-2021 345/355 #BeCS @1.14 Making an #IronCondor and to help fix loss on #BuPS Side.

SPY Put Diagonal

Bought to open SPY Mar 24 2021 350 Put / Sold to Open SPY Mar 05 2021 377 Put @ 0.07 Credit.
I’ve been rolling a SPY 377 short call forward every few days for a while, so this is an offset to that.
Gives me an Iron Condor at that strike price.

GME

BTO $GME Feb-26-21 100/Mar-05-21 100 Put Calendar @15.45

GME BECS

#becs
$GME STO 2/26 150/140 BECS at 2.00

FSLY

#CoveredCalls – Selling next week a day early and slightly below cost basis for some downside protection.

Sold FSLY MAR 5 2021 73.0 Call @ 4.50

NVDA

STC partial $NVDA Feb-26-21 575/Mar-05-21 570 Call Calendar at 60% profit.

Targeting 100% and 150% for the remainders.

NVDA earnings and post earnings

#ShortPuts #Earnings – Happy to be out of this week. Selling outside the expected move and down near the 200ma on the new one.

Bought to Close NVDA FEB 26 2021 550.0 Put @ 2.25 (sold for 5.00)
Sold NVDA MAR 19 2021 500.0 Put @ 4.20

GME

Hit 200 dollars after hours

GME

Up 46 points
Here we go again 🙂

From Barrons:
The key inflection point in the GameStop saga last month — when brokers suddenly limited trading in the stock — could have been avoided if the systems designed to settle trades moved faster , according to Robinhood’s Vlad Tenev . Now, the CEO of the online broker may get his wish, at least partially.
The Depository Trust & Clearing Corporation (DTCC) announced on Wednesday that it expects to be able to shorten the time between when a trade takes place and when it is finalized — known as settlement — to one day from two. The DTCC is the most powerful clearinghouse in the market, and serves as a hub where buyers and sellers go to finalize and record their trades.
Robinhood, which relies on a subsidiary of the DTCC called the National Securities Clearing Corporation (NSCC) to clear its trades, stopped all buying in shares of GameStop (ticker: GME), AMC Entertainment (AMC) and other stocks on January 28 . Other brokers also placed limits on some transactions. Shares of the impacted companies mostly fell that day and some did not regain their prior highs afterwards. Investors blamed the brokers — and Robinhood in particular — for the shift.
Robinhood said that it was forced to take drastic action because of demands from the NSCC for more capital. Brokers need to deposit capital with their clearinghouses in case there’s some problem during the trade-settlement process. During the GameStop frenzy, those deposit requirements rose because of the large amounts of shares being traded and leverage being used. Robinhood deposited $124 million on January 25 , but the NSCC asked for $3 billion on Jan. 28 , Tenev said in testimony for a congressional hearing last week. The deposit requirement eventually fell to $1.4 billion that day, Tenev said, but Robinhood’s operations were impacted for days, with limits placed on buying and options.
At the hearing, Tenev said that he thinks the best way to solve this issue is to reduce the time to settlement to zero. “The existing two-day period to settle trades exposes investors and the industry to unnecessary risk and is ripe for change,” he said. The DTCC said it cannot comment on the Robinhood episode.
However, the DTCC has been working for years on shortening the time from trade to settlement — and in 2017 reduced that time span to two days from three. DTCC executives now say they can get to T+1, or finalizing a trade one day after it takes place, within two years — which could allow the DTCC to reduce margin requirements on brokers and other market participants.
The delay between when a person hits “Buy” on an investing app and the trade being fully recorded has less to do with technology and more to do with industry practice and risk management. The DTCC says it has the technology to move to one-day or possibly even same-day settlement right now, but that it will depend heavily on the various parties that use its system to sign on.
The delay between trades and settlement also serves a purpose, and reducing that time could impact other processes. For instance, investment firms that trade one stock multiple times during a day tend to net those trades at the end of the day. That way, they don’t have to go through the same process for each trade. Making sure all of those trades are settled and financed in real time, or in a very short period, would likely be impossible given current market dynamics.
The DTCC has been experimenting with blockchain technology to clear and settle trades. Some of today’s processes could theoretically be automated under that system, which would store trading data in encrypted files and allow market players to hook into the database. But blockchain tech isn’t fast enough to keep up with the current volume of trading. The DTCC is working on a prototype of a system, dubbed Project Ion, that could one day put clearing and settlement on a blockchain.
For now, the DTCC expects to be able to move forward with its current technology. One client is already weighing in.
“T+1 is a welcome stepping stone to real-time settlement,” Tenev said in reaction to the DTCC announcement. “We look forward to working with lawmakers, regulators and the industry to make this a reality.”

SPX trades

#SPX1dte Expiring: $SPX Feb 24th 3790/3810-3945/3965 condors, sold yesterday for 1.25

#SPX7dteLong This one would have been an ideal candidate for a double-dip profit, but I sadly did not close put side on yesterday morning’s drop. Condor purchased for 16.40 last Thursday…

Sold to close 39056/3885 put side for .50 at 47 minutes before closing bell.
Letting call side expire… Hopefully will be at least 10.00 credit.

GME flying again?

Moving rapidly higher, up 40%+ on day, mostly in last few minutes

OSTK post earnings

#ShortPuts – Let’s see if it can take out the 50, 100, and 200 day moving averages in a week and a half. Already over 40 percent off all time highs.

Sold OSTK MAR 5 2021 62.5 Puts @ 1.35

TQQQ Puts One out One In

#shortputs
$TQQQ BTC 2/26 70 put at .10. STO at 3.00.
$TQQQ STO 4/16/50 puts at 1.32 Thank you @jsd501

TQQQ Apr

STO 4/16 65 put @ 3.00

AMC ABNB BBY

05:53 AM EST, 02/24/2021 (MT Newswires) — Straddle prices for stocks expected to report quarterly results this week
Airbnb (ABNB) February weekly 187.50 straddle priced for a move of 12% into the expected release of quarterly results after the bell on Feb. 25.
AMC Entertainment (AMC) February weekly 7.5 straddle priced for a move of 22% into the expected release of quarterly results on Feb. 25.
Best Buy (BBY) February weekly 115 straddle priced for a move of 6% into the expected release of quarterly results before the bell on Feb. 25.

REGN

BTO $REGN May 470 calls @33.7 earlier

Horrible b/a, but like the stock at this level here, and wanted to limit the risk.

There are increase in option buying today for April expirations, I like May better, expires after the next earning.

FSLY LAZR MRVL AKAM Puts Close / SNOW Put Roll

#shortputs
$FSLY BTC 2/26 84 put at 8.50. STO at 3.27
$LAZR BTC 3/5 28 put at 1.20. STO at 1.70
$MRVL BTC 2/26 52.50 put at 4.20. STO at 1.46
$AKAM BTC 3/5 95 put at 1.00. STO at 1.20
$SNOW BTC 2/26 290 and STO 3/5 270 put at $5 debit. Earnings 3/3 after market. Plan to be out before.

OSTK earnings

#ShortPuts – I may regret it but adding one more a little more aggressively.

Sold OSTK FEB 26 2021 77.5 Put @ 2.40

RIOT iron condor

Sold to open $RIOT 3/19 25/35/80/90 iron condor @ 3.80

SPX trades

#SPX1dte Sold to open $SPX Feb 24th 3790/3810-3945/3965 iron condors for 1.25, SPX at 3890, IV 15.7%, delats -.06 +.06

#SPX7dteLong Bought to Open $SPX 3865/3885-3895/3915 iron condors for 16.75, SPX at 3890.

OSTK earnings

#ShortPuts #Earnings – Adding. Still going out an extra week for slightly lower sales.

Sold OSTK MAR 5 2021 70.0 Puts @ 2.00

Markets

Some of the best credit investors we know always look at stock dividend yields vs. the company´s ten year corporate bonds. Interesting data here. These are the top 30 S&P 500 dividend yielders, but we also show their cost of debt. Many of the top dividend payers in the S&P are paying out much more than their cost of debt (average bond yield) and many of them have strong balance sheets as well. The top 3 highest spreads of dividend yield cost of debt are 1. Altria 2. Exxon Mobil and 3. AT&T. This speaks to how cheap true value names are.
div yield and cost of debt

TQQQ,

BTC March 12, 80 puts at 2.64, sold at 3.25, Just reducing risk in case this decline goes further.

NFLX 3/19

Sold $NFLX 3/19 515/505 bull put spread @ 2.75

TSLA March

Sold $TSLA 3/19 600/590 bull put spread @ 2.00

NVDA

BTO 10 NVDA Feb-26-21 575/Mar-05-21 570 Call Calendar 6.1
Somewhat for the bounce and for the earning premium this week.
No upside risk, downside below today’s low.

PTON AMC ABNB LMND

Roll $LMND Feb-26-2021 135/145 #BuPS // Mar-19-2021 @1.54 debit was STO @1.95. Moved risk out.
Roll $ABNB Feb-26-2021 155/165 #BuPS // Mar-19-2021 @1.15 Credit. Originally STO at 2.08.
Roll $AMC Feb-26-2021 14 #ShortPut // Mar-19-2021 @0.20 credit. Second roll on this one.
BTC $PTON Mar-05-2021 150/160 #BeCS @0.10 Debit. STO @0.95 yesterday

Edited to add … TSLA … JFC.

NFLX

#ShortPuts – Taking this off for a gain on the little bounce.

Bought to Close NFLX MAR 12 2021 490.0 Put @ 3.50 (sold for 5.00)

TQQQ Jan

Sold $TQQQ 1/21/22 50 put @ 9.00. Thanks @jsd501 (from yesterday).

ARKK Mar

Sold 3/19 110.96 puts @ 2.40

SPY

Since I have been rolling a SPY short 377 Call forward for a few weeks I decided to take a chance on a 377 Put as a partial offset
Bought to Open 1 SPY Mar 15 2021 350 Put / Sold to Open 1 SPY Feb 26 2021 377 Put @ 0.06 Credit.
The short side is gone by Friday.
The long side is disaster protection and allows for a roll or rewrite of a new short.

SNOW

#ShortPuts – I’ll let stock get assigned this week for earnings next week. Sneaking in an extra call sale this week to help with basis reduction. Easy to roll into next week if needed.

Sold SNOW FEB 26 2021 270.0 Call @ 3.00

SPY

#ShortPuts – Adding below the 200ma.

Sold SPY APR 16 2021 340.0 Put @ 3.70

VXX Calls

Sold VXX 02/26/2021 18.00 Diagonal Calls @ 0.33 & 0.34
Sold VXX 02/26/2021 18.50 Diagonal Calls @ 0.29 & 0.30
Sold VXX 02/26/2021 19.00 Diagonal Calls @ 0.22, 0.26 & 0.29
Sold VXX 02/26/2021 19.50 Diagonal Calls @ 0.26

VXX opened at 15.82 and got up to 16.60.

Balances out my put exposure some more and uses up most of my leftover long March long calls.
#DoubleDip

TQQQ,

STO April 1, 55 puts at 1.60

# QQQ

Btc QQQ 100 19 MAR 21 ,350/355 CALL @.16 had sto for .55
part of condor /still waiting on put to close