BITO Time for a test…


Time for a test πŸ™‚
STO BITO Dec17’21 30 PUT @ $1.05
STO BITO Dec31’21 30 PUT @ $1.45

Short NEGG AUG 20 2021…

Short NEGG AUG 20 2021 CALL got assigned on Friday. So I exercised the long call.
There is probably a charge for being short shares, just not sure how much.

What happens to a Covered…

What happens to a Covered Call position when stock back-splits?

For example GE will have a 1:8 split in August.
Right now I hold 400 shares and 4 calls.
After the split I will end up with 50 shares, but what happens to the existing calls?

A couple of trades today….

A couple of trades today.
STO EWZ Jul16’21 32 PUT $0.60
STO TQQQ Jun18’21 65 PUT $1.50
STO TSLA Jun18’21 400 PUT $4.34
STO LABU May28’21 50 PUT $1.20
STO LABU Jun04’21 45 PUT $1.00
STO ARKK Jun18’21 80 PUT $1.00


STO TSLA May21’21 500 PUT @3.11


V is down 5% today

AYX is down 15%

STO AYX Mar19’21 100 PUT @1.79

AKAM down 11%

STO AKAM Mar19’21 92.5 PUT @1.10


SPOT is down 8% today

STO SPOT Mar19’21 250 PUT @3.10

IB has lifted all trading…

IB has lifted all trading restrictions, but implemented higher margin on those stocks.

BK and USB are down today

STO BK Mar19’21 40 PUT $1.00

Question about TOS option chain columns

When looking at the option chain in TOS, is there a way to display annualized return in a column?
Just like displaying ROR, which is built in.

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?



BABA is down today 15% on the news.


ZM dropped about 6% today.
Possible reason is that one of the ZM employees got charged by US government for sharing private data with the Chinese government.
We received a notice at work from one of our suppliers about data security issue.


Take a look at this trade

STO Jul 90 PUT
BTO Jul 140/160 CALL spread
Credit 5.35


QCOM is down 8% today
STO QCOM Dec24’20 135 PUT @1.36

It would be scary to be in this position.

I came across this video. Thought to share it here.

Lost $30,000 on a $1-Wide Credit Spread – TSLA (Options Traders MUST Watch This)

Calculating risk associated with a collar trade

A friend asked me a question about risk and collar trades. I provided an answer, but then started doubting if the answer was correct.


BTO 100 shares of XYZ stock
BTO 1 Jan 2020 $100 PUT
STO 1 Jan 2020 $100 CALL
The entire transaction was done for $100 debit.

I said that if the position is held until expiry, there would be not risk (not counting fees).

Is that correct or did I miss something?


COST announced today that its Board of Directors has declared a special cash dividend on Costco common stock of $10 per share, payable December 11, 2020, to shareholders of record as of the close of business on December 2, 2020.

LABU STO LABU Oct16’20 35…

STO LABU Oct16’20 35 PUT @1.10

I got this message from…

I got this message from IB

Tue Aug 25 09:09:11 2020 EST
As per Nasadaq’s System Status page- Nasdaq PHLX, NOM, BX, ISE, GEMX, and MRX have made all AAPL and TSLA options non-tradeable.

XLE at the close STO…

XLE at the close

STO XLE Oct16’20 30 PUT @ 0.43
STO XLE Dec18’20 30 PUT @ 1.10

WDC STO WDC Oct16’20 30…

STO WDC Oct16’20 30 PUT @ 0.72
STO WDC Jan15’21 30 PUT @ 2.01

SPY #shortputs STO SPY Sep30’20…

STO SPY Sep30’20 270 PUT @2.35

TQQQ STO TQQQ Sep18’20 60…

STO TQQQ Sep18’20 60 PUT @1.20

#PreferredShares A lot of preferred…

A lot of preferred shares are down with the market and pushing yield higher.
Some of the perpetual shares from big names are up to 8% yield.
Do you have any opinion on getting preferred shares at a discount?

Saudis Plan Big Oil Output…

Saudis Plan Big Oil Output Hike, Beginning All-Out Price War.

How would this affect DRIP?

Saudi Arabia plans to increase oil output next month, going well above 10 million barrels a day, as the kingdom responds aggressively to the collapse of its OPEC+ alliance with Russia.


VIX is down 8, but…

VIX is down 8, but /VX is unchanged.
Is that because of the backwardation?

Daily AT40 (T2108) is below…

Daily AT40 (T2108) is below 20%

#DRIP Probably a bad idea,…


Probably a bad idea, but…
STO DRIP Sep18’20 160 CALL@$27.80

Question about owning dividend stocks…

Question about owning dividend stocks vs. selling options on the same stocks.

A question came up about returns and benefits of owning dividend paying stocks.

Some argue that holding dividend stocks is a passive strategy that nets 3-5% dividend + possible stock price increase.

On the other hand, selling premium in the same stocks can possibly net 10% per year, while providing a lot of flexibility, like staying out of earnings, using different strategies, etc..

Considering similar risk and possibly lower returns, is it worth it to own dividend stocks?

What is your oppinion?

Jeff, what is the typical…

Jeff, what is the typical expected profit % on a DC?


Question about stop orders for…

Question about stop orders for long stock positions.

Do you use any stop orders for long stock positions?
Some recommend 5-10% below purchase price.
I tend to hold for too long…


LK STO LK Feb21’20 23…

STO LK Feb21’20 23 PUT @1.05

Interactive Brokers Is anyone using…

Interactive Brokers

Is anyone using IB Securities Lending Program?
What is your opinion about it?

VIX Puts Is there any…

VIX Puts

Is there any unusual risk in buying VIX puts?
Other than the potential loss of the premium paid.

TSLA calls Did you see…

TSLA calls

Did you see Feb21 TSLA calls at $1,000 strike are $2.40.
Can TSLA go that high? πŸ™‚ πŸ™‚ πŸ™‚

MOMO is down 7% JUL17,…

MOMO is down 7%
JUL17, 2020 25 PUT is @1.40

STO BA Jan15’21 250 PUT…

STO BA Jan15’21 250 PUT @ 11.10

STO FDX Leap Jan15’21 -…

STO FDX Leap Jan15’21 – 125 PUT @8.60

#fallingknife DLTR down 16%

DLTR down 16%

Is this a good time…

Is this a good time to start buying VXX calls? πŸ™‚


@smasty Sue, what is your…


Sue, what is your plan for TGT #suecollar trade?
With the earning coming up, puts are very expensive.

#fallingknife GRUB is down 42%

GRUB is down 42%
BYND down 19%

@hcgdavis Chris, what are the…

Chris, what are the current hedges you have on?
Can you please share some examples?

#fallingknife HAS is down 16%


HAS is down 16%

#fallingknife AMTD


STO ANET Jan17’20 185 PUT…

STO ANET Jan17’20 185 PUT 5.50

Anyone selling puts on COF?

Anyone selling puts on COF?

FYI ALGN is down 27%

ALGN is down 27%
TREE is down 17%

Anyone selling puts on BA?

Anyone selling puts on BA?

FYI IRBT is down 18%

IRBT is down 18%

Would it make sense to…

Would it make sense to sell DUST puts at this time?


#fallingknife PLAY is down 22%

PLAY is down 22%

TSLA STO TSLA Apr18’19 225…


STO TSLA Apr18’19 225 PUT 1.24
STO TSLA Apr26’19 220 PUT 2.38

#fallingknife STO RH Jan17’20 70…

STO RH Jan17’20 70 PUT $6.40

Jeff, do you have earnings…

Jeff, do you have earnings data for CRM?

GPS #earnings This one is…

GPS #earnings
This one is going to hurt anyone with short calls…

#fallingknife Does HPQ qualifies for…


Does HPQ qualifies for a #fallingknife ?
Down 18%

#earnings FL STO FL Mar01…

STO FL Mar01 50/68 Short Strangle -0.84

STMP #fallingknife STO Jan 17,…


STO Jan 17, 2020 75 PUT @ 11.70

WTW keeps going down. Is…

WTW keeps going down. Is it going to recover? πŸ˜‰

TNA STO TNA Apr18’19 40…


STO TNA Apr18’19 40 PUT $2.80

SOXL STO SOXL May17’19 55…


STO SOXL May17’19 55 PUT $6.30

UVXY STO UVXY Dec21’18 122…

STO UVXY Dec21’18 122 CALL 5.00

TNA and UVXY Sold on…


Sold on GTC in the morning.

STO TNA Apr18’19 40 PUT 2.50
STO TNA Apr18’19 45 PUT 3.50
STO TNA Jan18’19 45 PUT 2.00
STO TNA Jan18’19 50 PUT 2.80
STO TNA Nov02’18 55 PUT 1.10

STO UVXY Jan18’19 112 CALL 7.00

UVXY STO UVXY Jan18’19 112…

STO UVXY Jan18’19 112 CALL $7.20

ERX STO ERX Oct26’18 29…

STO ERX Oct26’18 29 PUT $0.55
STO ERX Jan18’19 25 PUT $1.25
STO ERX Nov16’18 27 PUT $0.80
STO ERX Dec21’18 26 PUT $1.15
You can do better now.

SOXL STO SOXL Nov16’18 65…

STO SOXL Nov16’18 65 PUT $0.85
STO SOXL May17’19 70 PUT $7.80
STO SOXL Feb15’19 70 PUT $4.80
STO SOXL Dec21’18 70 PUT $2.80

LABU STO LABU Oct19’18 55…

STO LABU Oct19’18 55 PUT $0.90

TQQQ STO TQQQ Oct19’18 50…

STO TQQQ Oct19’18 50 PUT $0.60

FYI BZQ ETF Dec21 $30…


BZQ ETF Dec21 $30 PUT
premium is about 1.60
All time low for this ETF was $32

Any thoughts?

#shortputs STO LABU Jan18’19 55…


STO LABU Jan18’19 55 PUT $3.20

FYI BZQ ETF is down…


BZQ ETF is down 11%