#ShortPuts – Out of the earnings play but the stock is still the biggest loser on my main watchlist. Going out a couple weeks and selling at the expected move and well below the 50ma.
Sold NFLX FEB 07 2020 310.0 Put @ 2.75
Author Archives: fuzzballl
NFLX Earnings
#ShortPuts #Earnings – No sense waiting around three days for a dollar…
Bought to Close NFLX JAN 24 2020 315.0 Put @ 1.14 (sold for 5.11)
LABU
#ShortPuts – Adding one replacing the one closed last week.
Sold LABU FEB 21 2020 48.0 Put @ 1.92
AVGO
#ShortPuts – More risk off in case I get stuck with NFLX…
Bought to Close AVGO JAN 31 2020 292.5 Put @ .75 (sold for 3.10)
BA Halted
For once my sense of timing was halfway decent booking my $18.60 last week. Coors Light will taste good on that one.
NFLX Earnings
#ShortPuts #Earnings – Well…here we go. Mixed results over the years with this one on earnings. Going pretty aggressive selling at the 50ma and slightly inside the expected move. Haven’t decided yet if I’ll add the call side to set up the Jade Lizard.
Sold NFLX JAN 24 2020 315.0 Put @ 5.11
UVXY
#BearCallSpreads – Nicely profitable stops set on all Feb positions so adding a little in March. Still short some puts and long VIX so would welcome these taking some heat.
Sold UVXY MAR 20 2020 15.0/30.0 Bear Call Spreads @ .70
WYNN
#ShortPuts – Whiz just reminded us about the virus breaking out in China. I saw that over the weekend and completely forgot about it. Bailing on the earlier WYNN position for beer money and watching from the sidelines for awhile.
Bought to Close WYNN JAN 31 2020 140.0 Put @ 2.57 (sold for 3.00)
SOXL TSLA
#ShortPuts – These are green quickly so booking now. Might take a shot at NFLX earnings now…
Bought to Close SOXL FEB 21 2020 200.0 Put @ 1.50 (sold for 5.50)
Bought to Close TSLA JAN 24 2020 480.0 Put @ .50 (sold for 7.35)
WYNN
#ShortPuts and possibly #Earnings – Earnings are probably in the week of this sale but just in case WYNN pulls a “WYNN” and changes the date at the last second I’m selling an aggressive starter to get back in this thing…
Sold WYNN JAN 31 2020 140.0 Put @ 3.00
Options Expiration
#OptionsExpiration – Let this one go the distance…
ISRG 587.5 Put (sold for 5.10)
BA
#ShortPuts – Losing my enthusiasm for this one. If 320 doesn’t hold there’s not much under it to stop it. Taking a small gain and waiting for earnings now.
Bought to Close BA JAN 24 2020 322.5 Put @ 2.90 (sold for 3.10)
ILMN LABU
Bought to Close ILMN JAN 24 2020 300.0 Put @ .25 (sold for 3.60)
Bought to Close LABU JAN 17 2020 50.0 Put @ .05 (sold for 1.45)
ULTA
#CoveredCalls #ShortPuts – My one bad position. Assigned stock at 315.00 after it tanked last quarter. Sold covered calls aggressively reducing basis to 287. Finally got caught in the never ending up market. Letting the stock go this week (maybe) at 240 and will resume the recovery with put selling to eventually get the 47 points back.
Sold ULTA FEB 7 2020 267.5 Put @ 3.40
SOXL
#ShortPuts – Bought to Close SOXL JAN 17 2020 230.0 Put @ .15 (sold for 3.20)
TNA
#ShortPuts – Bought to Close TNA JAN 17 2020 67.5 Put @ .05 (sold for 1.38)
TSLA
#ShortPuts – Staying in the week before earnings and rolling up for extra premium…
Rolled TSLA JAN 24 2020 425.0 Put to JAN 24 2020 480.0 Put @ 3.35 credit (7.35 total now)
EXAS
#ShortPuts – Missed this yesterday while out all day helping a friend move. Taking a starter now prior to earnings.
Sold EXAS FEB 14 2020 87.5 Put @ 2.20
UVXY
#BearCallSpreads – Adding a couple more…
Sold UVXY FEB 21 2020 13.0/30.0 Bear Call Spreads @ .72
LK TNA
#ShortPuts – Closing and opening…
LK:
Bought to Close LK FEB 7 2020 27.5 Puts @ .10 (sold for 1.10)
TNA: New starter position…
Sold TNA FEB 07 2020 67.5 Puts @ 1.32
VIX
#Hedges – @Kelly has inspired me to venture back into the belly of the beast. This is similar to my recent “beer money” trade. Going out to March and selling put spreads to finance call spreads and doing it all for a credit. I’ll be looking to book it on any decent spikes. Might sell a few extra UVXY calls while I’m holding this…
Sold VIX MAR 20 2020 15.0/13.0 Bull Put Spreads
Bought VIX MAR 20 2020 17.0/22.0 Bull Call Spread
Entire package for a net credit of .06
Max gain of 5.06 but would probably book it at much less than that. Max loss of 1.94 if VIX is below 13.06 at expiration.
ISRG
#ShortPuts – ISRG had a “pre-earnings announcement” last night. Guess that explains why the IV was so high in the week prior to earnings. The announcement was bullish so rolling short put up to grab a little more premium all in the week before earnings.
Rolled ISRG JAN 17 2020 550.0 Put to JAN 17 2020 587.5 Put @ 2.30 credit (5.10 total now)
AVGO
#ShortPuts – Other than TSLA and /GC this is the weakest one on my main watchlist today. Hanging on by a thread to a toppy looking chart. I’m selling at the 200ma and about a 4.5 percent divvy yield down there.
Sold AVGO JAN 31 2020 292.5 Put @ 3.10
VIX
Getting out of the double vertical with beer money. Closed the long side for .80 on the last spike but vol getting hammered again so bailing here.
Bought to Close VIX JAN 22 2020 13.5/11.5 Bull Put Spreads @ .71
Originally put the trade on for .05 credit so made .14 woohoo!
Missiles flying, airliners getting shot down, impeachments flying everywhere and we can’t get a volatility spike for more than a couple hours. Crazy days we’re in…
BA
#ShortPuts – Whiz confirms and I agree based on some pictures he showed that the 737 was actually shot down last night. I’ll take a shot (no pun intended) out a couple weeks and just prior to earnings.
Sold BA JAN 24 2020 322.5 Put @ 3.10
Skew??
Been wondering why some IVs and expected moves have been a little off compared to upcoming earnings dates. Totally forgot phase 1 of the China deal is scheduled to get signed on the 15th. That could be throwing things off a little since there’s still always a chance it’ll fall through last second.
Just guessing….
TSLA
#ShortPuts – I can’t believe I’m doing this on a big up day but here goes. Should allow for two rolls before earnings and guessing earnings premium will be jacked this quarter for a possible re-load.
Sold TSLA JAN 24 2020 425.0 Put @ 4.00
SQ
#CoveredCalls – This one had been weak and looking weaker so was selling the covered calls pretty aggressively. Then out of the blue caught an upgrade this morning. Rolling now to get the calls back to breakeven on the stock. This roll should be a couple weeks before next earnings so re-evaluate then.
Rolled SQ JAN 10 2020 62.5 Calls to JAN 24 2020 63.5 Calls @ even
This has been a long term repair trade from getting the stock at 80ish in the August implosion…
ROKU
#BullPutSpreads – This should be a couple weeks before next earnings…
Sold ROKU FEB 7 2020 120.0/100.0 Bull Put Spreads @ 2.15
Go Blues!
#StanleyCup – One year ago today we were in last place in the entire league. We all know what happened after that. It’s that time of year to resurrect the avatar!
#OffTopic 🙂 🙂
UVXY
#BearCallSpreads – If today didn’t generate a sustainable spike in volatility maybe this will…
Sold UVXY FEB 21 2020 17.0/30.0 Bear Call Spreads @ .80
ISRG SOXL SQ ULTA VIX
#ShortPuts #BullPutSpreads #BullCallSpreads #CoveredCalls – A few this morning…
ISRG: Selling the week before earnings outside the expected move and well below the 50 ma almost at the 200ma.
Sold ISRG JAN 17 2020 550.0 Put @ 2.80
SOXL: Finally back in this one.
Sold SOXL Jan 17 2020 230.0 Put @ 3.20
Sold SOXL Feb 21 2020 200.0 Put @ 5.50
SQ: Staying aggressive with the covered sales.
Bought to Close SQ JAN 3 2020 64.0 Calls @ .05 (sold for 1.52)
Sold SQ JAN 10 2020 62.5 Calls @ 1.30
ULTA: Stopped out at tiny profit on an extra sale against stock.
Bought to Close ULTA JAN 17 2020 240.0/210.0 Bull Put Spread @ 2.32 (sold for 2.36)
VIX: Taking off the long side of the double vertical. Holding short put spreads to keep some long volatility.
Sold to Close VIX JAN 22 2020 15.0/18.0 Bull Call Spreads @ .80 (original trade put on for a .05 credit)
KOLD
#BearCallSpreads – Nat gas approaching multi year lows so taking a slightly long starter position for the winter.
Sold KOLD FEB 21 2020 45.0/53.0 Bear Call Spread @ 1.77
ILMN
#ShortPuts – Selling the week before earnings and at the expected move and below the 50 and 200 day moving averages. Selling the week prior sets up nicely for either a roll into earnings or a juicy covered call sale or another put sale. This is also the weakest ticker in my main watchlist today.
Sold ILMN JAN 24 2020 300.0 Put @ 3.60
Beware: There might be some news driven event the week prior to my sale. The IV is higher for the week of Jan 17 expiration.
TQQQ
#ShortPuts – My last one just for fun…
Bought to Close TQQQ JAN 03 2020 79.0 Put @ .09 (sold for 1.23)
Happy New Year!!
AAL
#BullPutSpreads – Some guys in our union forum were debating the pros and cons about our outlook for next year. Have to say I’m on the fence. Lots of labor contract negotiations going on but fleet renewal will be winding down so maybe some debt reduction possible with the cash flow now. I suggested a low risk way to get long so since I suggested it I had to do it myself.
Going with an ITM bull put spread out a few months. Here’s my post from that forum:
=============================================================
I’m as bearish as the next guy on airlines but I’m taking a small shot with low risk…
Sold 5 AAL MAY 15 2020 35.0/30.0 Bull Put Spreads @ 3.75
What now?
1. Stock rallies above 35 by expiration full profit of $1875
2. Stock implodes then I’ll own 500 shares at a basis of 1.25 above wherever the stock ends up (in this case lower the better)
3. Stock goes to zero I’ll lose $625
4. Anything above 31.25 at expiration makes money or a near term rally makes money also
UVXY
#BearCallSpreads – Adding just a little out to Feb…
Sold UVXY FEB 21 2020 18.0/30.0 Bear Call Spreads @ .86
LABU
#ShortPuts – Thanks @jsd501 !
Sold LABU Jan 31 2020 48.5 Put @ 2.34
EWZ
#ShortPuts – Not much left here. Hoping for better opportunities next week.
Bought to Close EWZ JAN 10 2020 43.0 Puts @ .08 (sold for .46)
LABU
#ShortPuts – Starter position just to get something going…
Sold LABU JAN 17 2020 50.0 Put @ 1.45
ULTA
#BullPutSpreads – Short a Jan 240 covered call so selling the other side now.
Sold ULTA JAN 17 2020 240.0/210 Bull Put Spread @ 2.36
UVXY
#BearCallSpreads – Taking a few more off. Looking to add to the Feb positions now if we ever get another volatility spike.
Bought to Close UVXY JAN 17 2020 24.0/34.0 Bear Call Spreads @ .13 (sold for .90)
Bought to Close UVXY JAN 17 2020 25.0/35.0 Bear Call Spreads @ .11 (sold for 1.21)
TNA ULTA
#ShortPuts – Booking a couple more…
Bought to Close TNA DEC 27 2019 68.5 Put @ .07 (sold for 1.02)
Bought to Close ULTA DEC 27 2019 242.5 Put @ .05 (sold for 2.25)
REGN
#CoveredCalls – Rolling out to the week before earnings while waiting for a pullback. Hoping for a good roll into earnings on some weakness.
Rolled REGN DEC 27 2019 310.0 Call to JAN 31 2020 312.5 Call @ 1.00 debit
UVXY
#ShortCalls – No sense waiting around for Little Rocket Man to do something stupid…
Bought to Close UVXY DEC 27 2019 16.5 Calls @ .03 (sold for .61)
TNA
#ShortPuts – Starter position. Come and get it Mr. Market…
Sold TNA JAN 17 2020 67.5 Put @ 1.38
SQ
#CoveredCalls – Weak and barely hanging onto support so continuing aggressive sales.
Bought to Close SQ DEC 20 2019 65.5 Calls @ .05 (sold for 1.20)
Sold SQ JAN 3 2020 64.0 Calls @ 1.52
Been thinking the last few days (I know…scary!)
#ShortPuts – What do you think about this theory?
Looking back over the last 18 months where I’ve been predominately just selling puts and covered calls I realized something. Besides my crazy, high risk, entries I rarely receive any stock. Maybe 1 out of 10 times at the very most.
So, with that in mind, here’s my idea…stealing a little of this from Whiz but with my own twist. Whiz will trade very narrow spreads that are relatively safe but uses many contracts. He either wins or loses and rarely adjusts and his wins seem to outnumber losses enough to where he makes pretty darn good money. I was very skeptical at first but after watching him a couple years he really does do pretty good.
My theory is to do something similar but with my rule of never doing it on something I don’t want to own. I’m thinking that on the put sales that you’re reasonably confident on to crank up the number of contracts and use spreads. Then one of two things can happen…
1. The trade will bring in multiple more times the profit of just the put sale
2. The trade will implode and you’ll get stock at a limited downside
Now my strategy would be to allow assignment of number of shares I’m comfortable with and roll the spread loss into the basis and recover with call selling. (Whiz would just take the loss and move on) To help minimize the damage I would close one of the long puts (or however many shares you are willing to take) right at the close on expiration day. This would lock in profit there and leave one short put to get assigned.
If this losing situation were to only happen once every 10 or so trades the additional profit on the winners would be very nice.
Let’s use LULU as an example. I would only want 200 shares max if everything goes bad so that would be selling 2 naked puts the way I’ve been doing it.
Sell 2 Jan 24th 210 puts @ 2.05 for $410 premium
My new trade would be using say a 5 to 1 ratio on the sales vs stock I’m willing to receive and selling 5 wide spreads. You could use more or less depending on risk tolerance. The more you sell the more you have to make back on an implosion but also the more you make on a good trade.
Sell 10 Jan 24th 210/205 BuPS @ .82 for $820 premium.
Based on the TOS analyze of the spreads the max loss would be about 4180 at expiration on an implosion. My theory would be to sell two of the long puts on Friday afternoon and receive the stock from the two naked shorts that would leave. Whatever those puts bring in the 4180 loss would be reduced by that amount. The worse case scenario would be for the stock to end up right at the bottom of the spread where the longs wouldn’t be worth anything and the spreads would be at max loss. Of course the stock is at a higher level to start call writing which is good.
Let’s say at expiration the stock is at 200. The position would be at max loss but the 2 longs I’m selling are worth a total of one grand reducing max loss to 3180 and giving me 200 shares. The stock would be at 200 and my basis would be at about 226 (210 put sale plus 16 dollar loss on the assignment). I would have to depend on call writing to get that back.
So big picture, if you did this trade 10 times total premium would be $8200. If you happened to get stock once you’d be in the hole the one time and have to recover.
If you did the trade 10 times just selling the 2 naked puts the total premium would be $4100 and you’d own the stock at some unknown levels depending on how much it dropped.
With my “theory” at least the starting point for repair would be manageable if the thing were to “pull an ULTA” on me.
Another twist on this would be to buy an extra long put. It would reduce overall profit but really cap losses on an implosion. In fact if the stock were to tank enough you could make money on the drop. Here’s a sell 10 buy 11 scenario. Max gain drops to about 700 but losses start getting reduced as soon as the spread gets blown out. This would probably be well worth the extra buy.
Hope some of this makes sense!!
LULU post earnings
#ShortPuts #Earnings – Nice little rally last few minutes…didn’t think this would fill. Sold right after the earnings announcement for a double dip with the regular earnings sale.
Bought to Close LULU DEC 27 2019 217.5 Put @ .40 (sold for 2.80)
VIX Hedge
Trying a little experiment…
Sold VIX JAN 22 2020 13.5/11.5 Bull Put Spreads
Bought VIX JAN 22 2020 15.0/18.0 Bull Call Spread
Entire package for a net credit of .05
Max gain of 3.05 but would probably book it at half that.
MU Earnings
#Earnings #JadeLizards – Filled on the opening drop.
Bought to Close MU DEC 20 2019 50.0/55.0/55.5 Jade Lizards @ .23 (sold for .83 average)
Some new fees from TDA…
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MU Earnings
#Earnings #JadeLizards – Just for fun…
Sold MU DEC 20 2019 50.0/55.0/55.5 Jade Lizards @ .80
AVGO
#ShortPuts – Taking another one off…
Bought to Close AVGO DEC 27 2019 307.5 Put @ .35 (sold for 3.10)
Christmas Surprise??
As long as I’m resurrecting old hashtags how about this one? Lol
https://www.cnn.com/2019/12/04/asia/north-korea-christmas-gift-kim-jong-un-intl-hnk/index.html
** Might not be the exact old hashtag but seems to work now.
AVGO Earnings
#ShortPuts #Earnings – Went out an extra week for the premium. Nice rally so booking it.
Bought to Close AVGO DEC 20 2019 310.0 Put @ .30 (sold for 3.30)
TNA TQQQ
#TakeOneForTheTeam – A hashtag I haven’t used in a long long time but I think the time is now…
Sold TNA DEC 27 2019 68.5 Put @ 1.02
Sold TQQQ JAN 03 2020 79.0 Put @ 1.23
REGN
#CoveredCalls #ShortPuts – Not finding much to do this week. I’ll probably let my REGN stock get called away next week slightly under my basis. Switching over to a few put sales for repair. Similar to TNA, LABU, and WYNN positions recently repaired.
Sold REGN JAN 10 2020 355.0 Put @ 2.75
LABU PANW UVXY WYNN and Options Expiration
#ShortPuts #OptionsExpiration – Some late action…
Bought to Close LABU DEC 20 2019 47.5 Puts @ .15 (sold for 2.20)
Bought to Close PANW DEC 20 2019 220.0 Put @ .50 (sold for 3.50)
Expired:
UVXY 17 Calls (sold for .67)
WYNN 122 Puts (sold for 4.05 as a trade repair)
EWW to EWZ swap
#CoveredCalls #ShortPuts – A slight adjustment and trade repair. With some EWW covered calls DITM and terrible rollability I’ll let the stock get called away next week for a .42 per share loss. Replacing that position with EWZ which has better premium and easier to roll. Selling the EWZ puts down at the 50 and 200 moving averages…
Sold EWZ Jan 10 2020 43.0 Puts @ .46
UDOW
#ShortPuts – Bought to Close UDOW DEC 20 2019 105.0 Put @ .20 (sold for 2.90)
UVXY
#BearCallSpreads – I’ve got enough in Jan so heading out to Feb for a starter position…
Sold UVXY FEB 21 2020 20.0/30.0 Bear Call Spreads @ .80
TNA
#ShortPuts – Peeling a few more of these off just for risk reduction…
Bought to Close TNA DEC 20 2019 57.5 Puts @ .14 (sold for 1.55)
UVXY
#ShortCalls – Replacing this week’s expiration with a starter size position…
Sold UVXY DEC 27 2019 16.5 Calls @ .61
AVGO
#ShortPuts – Sold AVGO DEC 27 2019 307.5 Put @ 3.10
LULU Earnings
#ShortPuts – Bought to Close LULU DEC 13 2019 217.5 Put @ .95 (sold for 3.10)
AVGO Earnings
#ShortPuts – I may throw a call spread out there eventually to turn it into a Jade Lizard…haven’t decided yet. For now selling at the expected move and just above the 50ma. Going to next week for a little more premium. Not a big fan of a put sale on this rally but having trouble finding anything to do.
Sold AVGO DEC 20 2019 310.0 Put @ 3.30
DRIP
#BearCallSpreads – Sold off hard to support. Book ’em and wait for the next rally…
Bought to Close DRIP JAN 17 2020 120.0/130.0 Bear Call Spreads @ .41 (sold for 1.45)
LULU
#ShortPuts – Early on this one. Still holding the 217.5 for tomorrow…
Sold LULU DEC 27 2019 217.5 Put @ 2.80
WDC
#ShortPuts – Bought to Close WDC DEC 20 2019 45.0 Puts @ .05 (sold for .71)
CIEN Earnings
#JadeLizards #Earnings – Getting away to the upside so taking a small winner and moving on…
Bought to Close CIEN DEC 13 2019 33.5/37.0/38.0 Jade Lizards @ .81 (sold for 1.09)
Looked great until the conference call started…not sure what was said.
SQ
#CoveredCalls – Late fill roll up and out a week…
Rolled SQ DEC 13 2019 64.5 Calls to DEC 20 2019 65.5 Calls @ even
CIEN Earnings
#JadeLizards #Earnings – Taking a small shot. Breakeven near the expected move and recent lows with no upside risk.
Sold CIEN DEC 13 2019 33.5/37.0/38.0 Jade Lizards @ 1.09
LULU Earnings
#ShortPuts – Putting some risk on after taking some risk off. 🙂
Sold LULU DEC 13 2019 217.5 Put @ 3.10
Selling at the expected move and just above the 50ma….
ISRG NVDA SOXL
#ShortPuts – Taking some risk off in case this turns into tariff weekend…LOL
Bought to Close ISRG DEC 20 2019 530.0 Put @ .40 (sold for 3.80)
Bought to Close NVDA DEC 20 2019 190.0 Put @ .22 (sold for 2.60)
Bought to Close SOXL DEC 20 2019 165.0 Put @ .45 (sold for 3.00)
Options Bistro 