Another round. Selling tomorrow at half the expected move. Not much in the way of data tomorrow but unemployment on Thur.
Existing positions after a few credit rolls:
Bought to Close SPX Jul 16 2024 5620.0 Puts @ .60 (sold for 45.25)
New position sold yesterday:
Bought to Close SPX Jul 16 2024 5620.0 Put @ .60 (sold for 7.50)
And:
Sold SPX Jul 17 2024 5630.0 Puts @ 6.85
Changed my mind already. Big run today I’ll reload the covered calls out in Aug. Wouldn’t mind these taking some heat. Might be an issue with a surprise July cut but I’m betting not.
Sold TLT Aug 16 2024 97.0 Calls @ .43
Getting the stock uncovered and taking the gains on the short puts. Reload puts on a pullback possibly.
Bought to Close TLT Jul 19 2024 93.5 Puts @ .29 (sold for 2.10)
Bought to Close TLT Jul 19 2024 94.0 Calls @ .40 (sold for .56)
#SPX0dte Sold to Open $SPX July 16th 5610/5640-5645/5675 condors for 17.40, IV 13.14%, at 11:12 p ET
Also buying: 5560/5580-5690/5710 for 1.00 or 1.05 (not filled yet), deltas -.05 +.05
Added another synthetic short to hopefully take advantge of all the craziness over the next few months. When the Dec 2030s come out in Sep I may look at closing my oldest one.
Couldn’t add at the money due to a conflict in strikes with an earlier position. Went slightly in the money for less out of pocket but slightly higher margin.
Added Dec 2029 5500/5500/5900 @ 308.50 debit
Sold SPX Jul 16 2024 5620.0 Put @ 7.50
Sold 1 NUE 07/19/2024 177.5/170 Bear Call Spread at $0.83 Credit
Straight roll…my favorite kind.
Rolled SPX Jul 15 2024 5620.0 Puts to Jul 16 2024 5620.0 Puts @ 5.25 credit (45.25 total now)
#SPX0dte. Trying something new this week. Last night I sold the typical centered ATM condor for 16.25. But I also BOUGHT a 6-delta condor for 1.05.
My thinking is the long wide is hedge against the short narrow. This seems to be a solution to handling the wild swings we’ve been seeing.
If there is a strong move, it is likely that I would still be at a loss but a much smaller one. If there is a super strong move, some of which we have seen in recent days, it would be a 4 to 5 dollar winner at expiration, if left alone.
We did get a bullish move overnight and after open I stopped out the narrow for 18.25. Now I am watching my long calls on the wide (5670/5690) to take profits. Currently at 2.00, if I can get to 3.00 it will be breakeven for the day, profit if higher than that.
After watching today, it may have been best to stop out of the narrow before the open (could have done it for 17.00, only -.75 loss), and either let the long condor run or potentially add a new centered narrow after the open. But based on the upward action right now and the last few weeks, it has been a very directional intraday market and perhaps just buying long spreads is the only thing needed.
$COIN STO 7/19 250 call at $3.00
Sold NKE 07/19/24 66/71 Bull Put Spreads at $0.15 and $0.25 Credits
Sold TSLA 07/19/2024 315/300 Bear Call Spreads at $0.28 and $0.56 Credits
Sold 1 DJT 07/19/2024 70/65 Bear Call Spread at $0.28 Credit
Sold 1 UAL 07/19/2024 34/39 Bull Put Spread at $0.21 Credit
Sold 1 BMY 07/19/2024 36/39.5 Bull Put Spread at $0.21 Credit
Sold 1 GILD 07/19/2024 71.0 Covered Call at $0.41
Sold CLF 07/19/2024 17.0 Covered Calls at $0.08
Sold 1 SBUX 07/19/2024 80.0 Covered Call at $0.08
Sold 1 BMY 07/26/2024 44.0 Covered Call at $0.18
Retail Sales Tuesday morning
Update to SPX experiment. Here’s the original setups with date entered and cost to enter. All of these costs have already been recovered with daily sale premium. The first position is in one account and the other three are in a different account. I’m tracking those three as a combined P/L.
1. Feb 7th 5000/5000/5400 @ 225.0 debit (Dec 2027 expiration)
2. Feb 7th 5000/5000/5400 @ 283.0 debit (Dec 2028 expiration)
3. Mar 7th 5200/5200/5600 @ 360.0 debit (Dec 2029 expiration)
4. Jun 5th 5400/5400/5800 @ 202.0 debit (Dec 2027 expiration)
==============================================================
Position 1:
Cost to enter: 22500 debit
Cost to close: 3540 credit (if closed now)
Loss on LEAPS: 18960
Premium received: 41285
Gain overall: 22325
==============================================================
Positions 2,3,and 4 combined:
Cost to enter: 84500 debit
Cost to close: 47310 credit (if closed now)
Loss on LEAPS: 37190
Premium received: 86765
Gain overall: 49575
==============================================================
So if looking at it like a business:
Total Revenue: 128050
Total Costs: 56150
Net Gain: 71900
Average of 56 cents per dollar going to profit. Nice improvemnt on that last few weeks.
EDIT: Note: If these positions were all in an IRA type of account requiring full margin the current buying power hit would be 348000. That’s based on 40000 per LEAP bear call spread plus the current 5620 puts being sold against various long LEAP put positions.
STO August 30, $70 puts at 1.95
#rolling
#coveredcalls
#movedup and out
Sto DIAGONAL HE /12 JUL 2024/19 JUL 2024, 10 to 10.50 CALL @.15
#TICK I don’t know if anyone else watches TICK closely like I do, or have insight on it, but it just hasn’t been behaving normally in last few months. Like today it was consistently above +600 but SPX was kind of going sideways at the 5616 level. Then, when TICKS started trending DOWN, SPX took another strong leg UP 10 points. It used to kind of mimic the market minute to minute but lately tends to actually *counter* the S&P.
Using the bounce to get a decent roll to Monday.
Rolled SPX Jul 12 2024 5625.0 Puts to Jul 15 2024 5620.0 Puts @ 2.50 credit (40.00 total now)
#SPX0dte Sold to Open $SPX July 12th 5515/5535-5635/5655 condors for .90, deltas -.05 +.05, IV 17.62%, at 8:38 ET.
A brief dip but back to centered from the PPI data release… we are flat from yesterday’s close. Two days of heavy moves followed by a quiet Friday? We shall see…
I got 100-point width even after the data release which is better than mornings have been for awhile.
Helped my positions a lot. Hopefully we stay down a little so I can take profits.
1 SPY short diagonal 547 Put
1 SPY short 549/554 Bull Put Spread – sold today at $0.21 Credit
Jumping back in with a starter position the week before earnings.
Sold NVDA Aug 16 2024 115.0 Puts @ 2.60
Bought to close 1 PEP Jul 12 2024 150 Put at $0.01
This should finally do it. LOL Roll up to half of tomorrow’s expected move. (horrible timing)
Rolled SPX Jul 11 2024 5600.0 Puts to Jul 12 2024 5625.0 Puts @ 8.00 credit (37.50 total now)
BTC August 2, $60 puts at .16, sold at 1.00, had a margin call so had to cover today .
Trying to squeeze a little more out of these. Holding 94 strike covered calls also.
Rolled TLT Jul 19 2024 92.5 Puts to Jul 19 2024 93.5 Puts @ .30 credit (2.10 total now)
Sold 1 TSLA 07/12/2024 300/290 Bear Call Spread at $0.28 Credit
BTC July 26, $60 puts at .09 cents, sold a.83 cents.
STO August 23, $70 puts at 1.26
1 VIX JUL 10 2024 $12 PUT Expired this morning
This should put a top on the ridiculousness. LOL
Rolled SPX Jul 10 2024 5565.0 Puts to Jul 11 2024 5600.0 Puts @ 20.00 credit (29.50 total now)
#SPX0dte Sold to Open $SPX July 10th 5530/5550-5620/5640 condors for .90, deltas -.08 +.05, IV 12.90
#SPXah Placed tight condor centered at 5080/5085 for 13.80 last night. Was doing fine until this sudden spike that started around 7:30am ET, so I stopped out for 14.35. May look to try another one after the open.
Sold 1 NUE 07/12/2024 144/148 Bull Put Spread at $0.33 Credit
Sold 1 BMY 07/26/2024 44.0 Covered Call at $0.28
Sold 1 BMY 07/26/2024 45.5 Covered Call at $0.14
Sold 1 TSLA 07/12/2024 310/295 Bear Call Spread at $0.42 Credit
Sold 1 SBUX 07/12/2024 69/72 Bull Put Spread at $0.17 Credit
The short put is close to the 52 week low
#EveryLittleBitHelps
Pretty weak premium first half of the week. Thur and Fri get much better.
Rolled SPX Jul 09 2024 5560.0 Puts to Jul 10 2024 5565.0 Puts @ 4.10 credit (9.50 total now)
#Earnings play
Sold 1 more PEP 07/12/2024 150/157.5 Bull Put Spread at $0.63 Credit
REVISION: Powell testimony today (Tuesday) is 10am ET…. same as Wednesday.
STO August 23, 66 puts at 1.05
BTC July 19, 55 puts at .04, sold at 1.21
BTC July 12, $50 puts at .01, Sold at .82
STO August 23, 70 puts at 1.61
#Earnings play
Sold 1 PEP 07/12/2024 150/157.5 Bull Put Spread at $0.47 Credit
Taking the gains on the early bounce.
Bought to Close XBI Jul 19 2024 87.0 Puts @ .19 (sold for 1.40)
Bought to Close XBI Jul 19 2024 88.0 Puts @ .29 (sold for 1.35)
Taking the gains on the early bounce.
Bought to Close NVDA Jul 19 2024 115.0 Put @ .43 (sold for 2.59)
Bought to Close NVDA Aug 16 2024 105.0 Puts @ .85 (sold for 2.00 and 3.45)
Bought to Close NVDA Aug 16 2024 110.0 Put @ 1.42 (sold for 2.70)
Early on this but nice to see a little weakness.
Bought to Close SPX Jul 08 2024 5520.0 Puts @ .30 (sold for 7.00)
Sold SPX Jul 09 2024 5560.0 Puts @ 5.40
#coveredcalls
#everylittlebithelps
Sto F 12 JUL 2024 13.5 CALL @.05
#SPX0dte Sold to Open $SPX July 8th 5500/5520-5600/5620 condors for .80, deltas -.07 +.05, IV 12.61%, at 8:18am ET
Last Night: At 12:16am ET sold to Open $SPX 5525/5555-5560/5590 condors for 14.20. Of course, in this market it is being tested to the upside, currently around 15.00. Would like to close before the open and possibly place a new one ATM.
The banks start reporting on Friday to kick off earnings season.
REVISION: Powell testimony on Tuesday is 10am ET…. same as Wednesday.
The big CPI on Thursday
I’ve got some 94 strike covered calls so rolling up short puts in case we keep going.
Rolled TLT Jul 19 2024 91.0 Puts to Jul 19 2024 92.5 Puts @ .50 credit (1.80 total now)
Back from France and reloading inventory (trades). Should be at my normal level today.
So if people are interested, the butterfly and broken wing butterfly are some of the best tactics for income trading. I have taken others ideas and tweaked them for shorter term income generation. Typically 14-21 DTE but occasionally longer. Works on just about any ticker but SPX is probably the most efficient. The market determines the initial levels, delta zero on a 1 lot. Below is a screen shot of today’s trade.
I then manage with calendars, diagonals, verticals, or additional butterflies. Take profits around 5-10% which is usually over the weekend or within a week. Rinse and repeat. A significant move in either direction and I re-adjust the legs by moving either the leg or some of the center strikes. Since Oct 2022 it has made $128,153 on max risk of 100k (10-20k risk per account x 6 accounts).
Have to go out 28 DTE today due to low VIX to not have to pay too much for it.
STO August 2, $70 puts at 1.01
Getting kinda scary up here. Crazy.
Bought to Close SPX Jul 05 2024 5485.0 Puts @ .50 (Sold for 22.90)
Sold SPX Jul 08 2024 5520.0 Puts @ 7.00
#SPX0dte Sold to Open $SPX July 5th 5505/5535-5540/5570 condors for 13.60, IV 15.76%
#Jobs — Gains beat expectations again, but drop in prior months
Gain of +206,000 non-farm payroll jobs, vs. expected gain of 190K
Unemployment up 0.1% to 4.1%, vs expectation of unchanged
U6 unemployment 7.4%, unchanged
Labor force participation up 0.1 to 62.6%
Average hourly earnings up by 0.3%; +3.9% Y/Y
May jobs revised down by -54K to +218K
April jobs revised down by -57K to +108K
This should make Friday a little more exciting.
Rolled SPX Jul 05 2024 5460.0 Puts to Jul 05 2024 5485.0 Puts @ 2.50 credit (22.90 total now)
#SPX0dte Sold to Open $SPX July 3rd 5475/5505-5510/5540 condors for 10.05, IV 11.16%
Low premium due to a short day. Overnight action was in a pretty small range. May or may not close before 9:45/10:00 data release. Market closes at 1pm ET.
STO August 16, 70 puts at 2.14
Early roll since it feels a little weak. Going out to Friday and down a couple strikes for nice credit. (cue up the rally! LOL)
Rolled SPX Jul 02 2024 5470.0 Puts to Jul 05 2024 5460.0 Puts @ 4.75 credit (20.40 total now)
#SPX0dte I placed a trade last night around my usual time when I shouldn’t have. The move from the close to 9pm PT was downward, and I want to place this trade only if that move is mostly flat. But I had been encouraged by the resilience of the premium lately so I placed it anyway.
At 12:28am ET, sold to open $SPX July 2nd 5435/5465-5470/5500 condors for 15.478
The downward move continued and premium maxed at 18.75 at around 7:53am. We bounced enough and I just closed for 15.30, so breakeven after commissions. The resilience saved me but my condor is too off-center to risk going into Powell’s speech and JOLT release. I will consider possibilities after 10am.
BTC July 5, 55 puts at .01, It would have expired at zero but for .01 cent, I covered early.
STO August 9, 60 puts at .91cents
Adding a little.
Sold TLT Jul 19 2024 91.0 Puts @ 1.30
Early roll today. Be out most of the afternoon.
Rolled SPX Jul 01 2024 5475.0 Puts to Jul 02 2024 5470.0 Puts @ 1.75 credit (15.65 total now)
#SPX0dte Sold to Open $SPX July 1st 5445/5475-5480/5510 condors for 16.05, IV 13.25%, at 12:26am
Options Bistro 