$RIOT BTC 2/5 19 put at 1.00 STO at 2.62
$WKHS BTC 2/19 21 put at .30. STO at 1.86
$NNDM BTC 2/19 10 put at .30. STO at 3.52
$O STO 2/19 62.50 put at 3.70. Almost 6% yield and I am building position. If assigned price would be 1.25 below today’s close. I can dream.
Direxion has announced it will execute forward share splits for three of its ETFs, as well as reverse share splits for an additional two ETFs.
— Read on www.direxion.com/press-release/direxion-announces-forward-and-reverse-splits-of-five-etfs
STO 12 Feb 57/52 spread for 1.92.
Hoping for a pullback.
BTC $ZM Feb-05-2021 310/320 #BuPS @0.15 was STO 1/13 @2.00
Holding $ZM Feb-12 325/335 #BuPS and Feb-19 300/310 #BuPS also.
Earlier today I STO the February 5, 70 call at 5.65
How the GME Options frenzy could price itself out of existance
Reddit-fueled stocks ‘now have options that are very expensive, perhaps prohibitively so’: BTIG’s Emanuel
There’s an old saying among commodity traders that the cure for high prices is high prices. The same likely will prove true for options on GameStop Corp. and other highflying targets that have become popular on Reddit message boards, argued one veteran options analyst.
The idea is just Econ 101: as prices for wheat or oil or gold rise too high, users naturally use less of the product. As demand is rationed, prices eventually decline (the same idea works in reverse, with low prices seen as the cure for, you guessed it, low prices).
And so it might go after last week’s frenzied buying of call options, which give the holder the right but not the obligation to buy the underlying security at a set price by a certain time, on GameStop (GME) and shares of other heavily shorted companies, said Julian Emanuel , chief equity and derivatives strategist at BTIG, in a Sunday note.
The heavy call buying was part of an effort by an army of individual investors organized via Reddit’s WallStreetBets forum to run up the prices of the heavily shorted companies, forcing short sellers to buy back their shares and accelerating the rally. The call buying generated a feedback loop of its own as market makers, who had sold the call options, bought the underlying stocks to hedge, or neutralize, their market exposure.
More details:How an options-trading frenzy is lifting stocks and stirring fears of a market bubble (https:// www.marketwatch.com/story/a-surge-in-options-trading-is-pushing-around-the-stock-market-and-bringing-back-memories-of- the-dot-com-bubble-11611618636)
The strategy, as anyone paying the slightest attention last week to markets or the news knows, seems to have worked quite nicely. GameStop shares soared 400% last week to end Friday at $325 after touching a high above $500 on Thursday. GameStop ended 2020 near $18 a share.
Given those gyrations, implied volatility — one measure of an option’s cost — at an off-the-charts 1,000% proved cheap for options that expired last week, Emanuel said, noting in the chart below the surge in 3-day realized volatility.
But it’s likely to be a different story going forward, he said, arguing that options “have likely become too expensive to remain a source fueling further upside in a number of the meteoric gainers.”
To illustrate, he noted that an at-the-money call option (one with a strike price equal to the stock price) on GameStop expiring on Feb. 19 cost around half of GameStop’s actual share price, or 580% volatility. By comparison, at- the-money call on the S&P 500 , also expiring on Feb. 19 , cost 2.5% of the index’s actual price, or 26.5% volatility, he said.
Since both options were at-the-money, they had no “intrinsic value,” a measure of the option’s profitability based on the strike price relative to the share price. Instead, the premiums consisted entirely of “time value,” based on the underlying asset’s expected volatility and the time until the option expires.
The bottom line, Emanuel said, is that options on GameStop and much of GameStop’s cohort of social-media-fueled speculative stocks “now have options that are very expensive, perhaps prohibitively so.”
#ShortPuts – Never did get a full LABU position on the dip so going with MRNA on a big down day. Selling the expected move and at or below the 50ma and one or two weeks prior to earnings.
Sold MRNA FEB 19 2021 125.0 Put @ 1.83
Sold MRNA FEB 19 2021 130.0 Put @ 2.57
Roll $LULU Feb-05-21 335/325 #BuPS // Feb-26-2021 @-.42
STO $LULU Feb-26-2021 360/370 #BeCS @1.25
Was from a bit earlier today.
Bought to close 1 SPY Feb 01 2021 381.0 Call at $0.01. It won’t trade any lower.
Sold this one on 01/27 @ 3.30.
Replaced it with 1 SPY Feb 05 2021 382.0 Call at $1.27.
BTC $TSLA Feb-05-2021 690/700 #BuPS @0.18. Was STO 1/13 @1.95
Holding Feb-12 690/700 and Feb-19-2021 720/730 #BuPS.
(ETA – corrected price on Feb-19 spread)
#SPX7dteLong Bought to Open $SPX Feb 5th 3750/3770-3780/3800 iron condors for 17.65, with SPX at 3774.
Expected to expire with full 20.00 credit: Feb 1st 3855/3835 put spreads. Condors bought for 16.20 last Tuesday.
#SPX1dte Expiring: Feb 1st 3540/3560-3825/3845 condors, sold Friday for 1.25.
Nov. 4, sold a Dec. 18, 8/11/11/12 #ironbutterfly. I have rolled the 11 put a couple times, ending up with a Feb. 19, 10 put. I closed it today on the run up in UNG, making about $50. I still have a 13 put and 100 shares from other unworthy UNG btrades.
New #VXXContango Special
Bought to open VXX Sep 17 2021 5.0 Puts / Sold to Open VXX Feb 05 2021 17.0 Puts @ 0.04 Credit
Short DTE = 4
Long DTE = 228
KOLD Down 20% today
BOIL Up 20%
for those watching these things
BTC February 5, 222.50 puts at .20, sold at 5.25
BTO double BWB for 2/8, 3615/3600/3570 and 3825/3840/3870 for combined 2.0 credit.
STO $AMC Feb-05-2021 14p/18c/22c #jadelizard @4.55
No risk on the upside, and, If the short put is ITM at the end of the week, I’d probably take the stock.
Sold $GME 2/5 300/310 bear call spread @ 2.25 with the stock around 235.
BTO $GME Feb 12th/Feb 19th 100 put calendar for 10.70.
Theoretical max profit 350%. Will scale out starting at 100%
#ShortPuts – Adding…
Sold LAZR FEB 26 2021 25.0 Puts @ 1.70 and 1.75
#ShortPuts #Speculation My first position in the nuttiness.
Sold to Open $GME Feb 12th 15 puts for .50.
Also looking for a good way to be short with a spread.
#ShortPuts – Here’s a trade we probably weren’t expecting to see. Tiny position.
Sold SVXY FEB 19 2021 30.0 Puts @ .80
#ShortPuts #BullPutSpreads – For lack of anything else to do trying a couple highly directional positions.
CRM: Pre-earnings so good premium to manage it.
Sold CRM FEB 19 2021 220.0 Put @ 4.80
SLV: Just for fun. Tiny position I’ll manage similar to my PINS trade if needed.
Sold SLV MAR 19 2021 30.0/25.0 Bull Put Spreads @ 3.20