#ShortPuts #IRA – Missed this one earlier…
Sold TXN APR 20 2018 105.0 Put @ 3.00
Author Archives: fuzzballl
EXAS
#SyntheticStock – Delta was approaching zero so closing and hoping for a pullback to reset…or might reset anyway 🙂
Closed July 50/50/48 synthetic
Closed Jan 26th 51 calls
Net gain of 75 cents on a six day trade. Thanks guys (and gals)!
URI earnings (sort of)
GWW
Hey @Iceman ….how’s those GWW short puts looking? Completely missed this earnings trade yesterday.
🙂 🙂
NUGT
#SyntheticShortStock – Adding to the short at original strikes for simplicity. Just averaging down on the debit..
Added to Jan 2019 32/32/34 synthetic short @ 7.80 debit
VRX
#UOA – Alert saying bullish but I’m not sure why…LOL @smasty ? Any ideas?
ISRG
#CoveredCalls -This was a reverse roll of a strangle where the call side got blown out and then turned into covered stock. Finally back to a decent profit. Debating on holding it through earnings but finally decided to unload it and set up a new earnings play on the ticker tomorrow.
Sold to Close ISRG JAN 26 2018 420.0 Call Covered Stock @ 415.50 (bought for 410.45)
LRCX
#Earnings -Thanks @Jeff ….almost forgot about this one. Selling put side for now.
Sold LRCX JAN 26 2018 202.5 Put @ 2.70
Sold LRCX JAN 26 2018 200.0 Put @ 1.80
This is about one third size of what a #Fuzzy would be so if the stock implodes well below these I’ll set up a Fuzzy down there wherever it ends up…or possibly roll the puts if not too DITM.
SVXY
#ShortPuts – Sold SVXY MAR 2 2018 100.0 Put @ 2.55
NFLX
#Earnings – Trading between the inverted strikes for now. To make room for other earnings plays booking with a small profit.
Bought to Close NFLX JAN 26 2018 260.0/252.5 Inverted Strangles @ 10.65 (sold for 11.05)
TLT
#SyntheticShortStock – Uncovering the #FuzzyBear ….
Bought to Close TLT JAN 26 2018 122.5 Puts @ .44 (sold for .30)
GLD
#SyntheticStock – I should be really enjoying this gold run but not so much. Another weekly sale that’s absolutely gotten run over. Rolling the whole thing up to get back to long deltas but still leave a little cushion for a pullback. Disaster puts were only 2 points below so leaving them in place for now.
Rolled Jan 2020 122/122 synthetic up to 124 (leaving 120 puts in place)
Rolled Mar 2018 124 calls up to 126
All for .35 credit…
SVXY
#SyntheticStock – Weekly sales…
Bought to Close SVXY JAN 26 2018 139.0 Calls @ .10 (sold for 1.85)
Sold SVXY FEB 2 2018 136.0 Calls @ 1.40
NUGT
#SyntheticShortStock – Selling cautiously against the short. Getting close to adding to it…
Bought to Close NUGT FEB 2 2018 28.0 Puts @ .05 (sold for .55)
Sold NUGT FEB 9 2018 32.5 Puts @ .45
Airlines
#FallingKnife possibilities tonight. I think the UAL conference call mentioned a slight increase in capacity and everything sold off after hours…
AAL UAL LUV DAL all down…
FWIW
SAGE
Another big #Squeeze setting up. Kinda scary though with the move it’s already had but looks like it wants to go up…
MAT
@Iceman – Nice catch on this one!
AMZN
#SyntheticStock – This trade makes me a little queasy thinking about how much the weekly sale has cost me…LOL. The synthetic originally started at 1000 and has been blocked ever since after a few initial call sales. Rolling up again to keep some long deltas but leave a lot of downside room. Should make weeklies easier to roll up IF the stock ever quits going up.
Rolled Jun 2019 1150/1150 synthetic up to 1250/1250
Rolled Jun 2019 760 disaster put to 810
Rolled Feb 1110 short call to Feb 1210 short call
Whole package cost 1.63 debit but gets the position sitting a little better for rolling…
UNP
Bearish UOA alert…I see lots of calls being thrown around in March. Not sure what’s going on.
GS
#SyntheticStock – He’s got me convinced…LOL. Staying small so not a lot of risk.
Sold GS JAN 18 2019 260.0 Puts @ 22.50
Bought GS JAN 18 2019 260.0 Calls @ 25.35
Bought GS JAN 18 2019 250.0 Puts @ 18.08
This gives a net debit of 20.93 for the Jan 2019 position. Add the 10.00 point max downside and get a max loss possibility of 30.93. Based on that, and the 51 weeks remaining in the trade I only need to average about 61 cents per week in sales to cover the absolute worst case scenario.
Giving it a lot of breathing room in the beginning until I see how the squeeze plays out:
Sold GS FEB 16 2018 275.0 Calls @ .95
JPM GS
Whiz still big time bullish on banks and still telling people to get in JPM. GS in a pretty tight squeeze here. Maybe take a small shot? JPM just looks too extended…
SVXY
#SyntheticStock #IRA – Posted the details last week with all the nuts and bolts. Adding 1 for fun…
Bought Jan 2019 SVXY 135/135/132.5 Synthetic Stock / Disaster Put @ 38.35
About 80 cents a week to cover worse case scenario…
Sold SVXY FEB 2 2018 138.0 Call @ 1.80
UVXY
#BearCallSpreads #IRA – Closing some more that are using a lot of margin without much profit left to make.
Bought to Close UVXY JAN 18 2019 45.0/55.0 Bear Call Spreads @ .33 (sold for 1.32)
Bought to Close UVXY JAN 18 2019 60.0/75.0 Bear Call Spreads @ .32 (sold for 1.73)
REGN
#SyntheticStock -Got a little cash to put to work now and this one is finally starting to perk up. Not the strikes I would normally use but since it’s an add to an existing position I’ll use the same ones but getting in for about 3 dollars less.
Bought REGN Jan 2020 400/400/390 Synthetic Stock / Disaster Put @ 66.25
Sold REGN FEB 2 2018 395.0 Call @ 2.50
Posted all the details in the original trade but about 90 cents a week to cover worse case scenario.
WYNN so long old friend
#PerpetualRollingStrangles – Well…it’s with a heavy heart I bid farewell (for now) to an old friend. Been in the starting lineup for about 15 months. Just a little ‘ol 3 lot strangle that’s been rolled around and rolled around plugging away day after day. Reversed it into a bull put spread and now with the big run up I’m booking the whole thing.
Great trade on the reverse roll but not so hot on selling the calls above it yesterday. Still a nice winner…
Bought to Close WYNN FEB 16 2018 200.0/170.0 Bull Put Spreads @ 5.81 (sold for 16.70)
Bought to Close WYNN JAN 26 2018 195.0 Calls @ 5.75 (sold for 1.00)
Net gain of 6.14 on this 5 lot. The (very good) news is the total profit this ticker has generated since the beginning. Averaging a 3 lot the entire time premium received was just north of 40 points carrying about 5k margin during the run.
RIP WYNN (for now)
NFLX earnings
#Earnings – Going aggressive here. Premiums are nice in this thing so wouldn’t mind rolling it into synthetic stock if I have to. For now going inverted on the earnings strangles. Closing the original put sales also. Definitely early if the stock stays weak the next 3 days but plenty of premium to work with…as I’m typing it’s selling off so not a great adjustment yet. LOL
Bought to Close NFLX JAN 26 2018 200.0 Put @ .05 (sold for 1.68)
Bought to Close NFLX JAN 26 2018 202.5 Put @ .05 (sold for 2.13)
Bought to Close NFLX JAN 26 2018 205.0 Put @ .03 (sold for 2.69)
I’ll roll all those into the basis of the new strangles.
Sold NFLX JAN 26 2018 260.0 Puts @ 9.00
Now 260/252.5 inverted @ 11.05 breakeven 249 to 263.50
TLT
#PerpetualRollingStrangles – Using this pullback to get out of a few of my short calls that have been DITM for quite awhile. I’ve got my July #FuzzyBear to help protect to the downside now…
Bought to Close TLT FEB 16 2018 123.0 Calls @ 1.70 (sold for 2.45)
AGN
#SyntheticStock – Booking this one also. Caught it right at the squeeze and we’re in day 9 now so gotta be close to a rest (or maybe phase 2 ? ) Just crossed into negative deltas so outta here. I’ll get back in on a pullback or sell something for earnings.
Sold to Close Jan 2019 175/175/170 synthetic
Bought to Close Jan 26 2018 182.5 calls @ 5.30
Net credit including weekly sales (only one sale…LOL) of 20.25 with initial cost of 16.64 for a 3.61 winner.
NFLX
#Earnings #ShortStrangles – Up 44 percent of max already. Let it ride? 🙂
KR
#SyntheticStock – Just got a UOA bearish alert on KR. Was debating about booking it anyway after this nice run so went ahead and closed it. Of course it’ll now be free to run on to glory…LOL
Sold to Close July 28/28/26 synthetic
Bought to close Feb 9 30.5 calls
Net credit plus weekly premium received totals 2.47 with an entry of 1.87. 60 cents on a decent size position. Quick little trade and on down the road. 🙂 🙂
ADSK
#SyntheticStock – Had two of these going. One as a repair trade and one as a new trade.
Strikes were:
Jan 2019 105/105/100 and Mar 2 111 calls
Jan 2019 115/115/110 and Feb 2 116 calls
With the stock looking a little stronger I rolled all of the lower strike positions up to match the higher strikes in all positions. Did the whole bundle for a 2.85 credit. Much easier to track and trade now and brought in a little cash as well.
SPX
#RocketManHedge -My further out #FuzzyBear hedge at 2800 I can be more aggressive with now…
Rolled Wed 2785 put to Fri 2800 @ 4.25 credit (12.25 total received on it now)
TLT
#FuzzyBear – Covering my July FuzzyBear. I added this last week shorter term to protect my #PerpetualRollingStrangles that were getting too long. After the final numbers are in it looks like 20 cents a week through July to cover max loss. But…if TLT breaks long term support this could be a bigly winner.
Sold TLT JAN 26 2018 122.5 Puts @ .30
SPX
#RocketManHedge -Let this one spend the weekend unhedged but since the world doesn’t seem to be ending with the gubment shutdown I’m covering it now…
Sold SPX JAN 31 2018 2750.0 Put @ 3.70
WYNN
#BullPutSpreads – Got lucky last week and picked a good time to flip full blown bullish on WYNN. Was complaining about their last second earnings date announcement over the weekend but I take that back. I like this sale better against my Feb 170/200 Bull Put Spreads.
Sold WYNN JAN 26 2018 195.0 Calls @ 1.00
NEW 24/5 trading
Updating some watch lists and I noticed a new little symbol next to a few of them. A little “24” inside a circle. Apparently it means these are now available for 24/5 trading similar to futures. No idea when it starts or what the deal is…
The symbols I’m seeing so far:
EEM, FXI, GLD, IWM, QQQ, SPY, TLT, UNG
WYNN…grrr
#Earnings -They pull this crap every quarter. How can you wait until Friday after the close to announce earnings will be before the open on Monday. Wanted to sell calls against my bull put spreads for earnings.
Wynn Resorts Announces Fourth Quarter Earnings Release Date
LAS VEGAS–(BUSINESS WIRE)–Jan. 19, 2018– Wynn Resorts, Limited (NASDAQ: WYNN) announced today that it will release the Company’s financial results for the fourth quarter ended December 31, 2017 prior to the market open on Monday, January 22, 2018, followed by a conference call at 9:00 a.m. PT (12:00 p.m. ET).
There…I feel better after venting a little…
AGN
#SyntheticStock – Actually caught the breakout on this one. Looks due for a rest so keeping weekly sales close and will book the trade if overall delta approaches zero.
Rolled AGN JAN 19 2018 180.0 Calls to AGN JAN 26 2018 182.5 Calls @ .25 credit
MAT
#Fuzzy #SyntheticStock – I’ll take shot since @Iceman pointed this out. Big squeeze on the daily with 50ma turning up. Decent weekly premium as well. Earnings in two weeks…
July 16/16/14 synthetic long with disaster put @ 1.60 debit and 3.60 max loss
3.60 max loss with 26 weeks remaining need to sell 14 cents per week to cover worse case scenario
So:
Sold MAT Jan 26 2018 17.5 calls @ .27
Tastyworks
This is a cool feature. Sort your watchlist by earnings date and easily see if it’s before or after the bell. Very nice!
GWW
#IRA – Filled on another small one. Risk reduction…former #FallingKnife trade.
Bought to Close GWW APR 20 2018 160.0 Put @ .90 (sold for 3.80)
NFLX Earnings
#Earnings -Thanks @Jeff for the reminder. Taking a page out of my “Turbocharge Your Fuzzy” post from last week. Looking at NFLX…where would I be happy setting up a #Fuzzy or a #SyntheticStock position? I would say right where Jeff was selling at the 50ma looks pretty good. If it doesn’t get there then great premium. If it does get there I can live with the entry for a new long position.
Sold NFLX JAN 26 2018 205.0 Put @ 2.69
Sold NFLX JAN 26 2018 202.5 Put @ 2.13
Sold NFLX JAN 26 2018 200.0 Put @ 1.68
EDIT…strange numbers on the fills since I did it as a single entry for 6.50 total.
KR
#syntheticStock – Popping out of a tiny squeeze so giving it some room.
Rolled KR JAN 26 2018 29.5 Calls to KR FEB 9 2018 30.5 Calls @ .07 debit
TLT
#PerpetualRollingStrangles – I won’t go into the details but added some protection for the bond collapse everyone is talking about.
Rolled DITM puts out and down
Still sitting on short calls near ATM
Added a June #FuzzyBear for some protection since delta was getting too long
Leaving it unhedged for now. Still enough time to sell to cover max loss…
REGN
#SyntheticStock – This one is working nicely. No crazy moves (yet). Earnings on the horizon (Feb 8 est) so still selling prior to that.
Bought to Close REGN JAN 19 2018 380.0 Call @ .20 (sold for 1.80)
Bought to Close REGN JAN 19 2018 380.0 Call @ .25 (sold for 1.80)
Sold REGN JAN 26 2018 380.0 Call @ 3.00
Sold REGN JAN 26 2018 380.0 Call @ 3.10
Strange fills. One for 2.80 credit and one for 2.85…
ISRG
#CoveredCalls – Earnings next week so rolling out but not up. I’d rather have the downside cushion. Love the premium in an earnings week. Wish they were all like this…
Rolled ISRG JAN 19 2018 420.0 Call to ISRG JAN 26 2018 420.0 Call @ 5.85 credit
GLD
#SyntheticStock -weekly getting run over again and I was very careful selling them… 🙂 Hard to predict that move (again). Trade is out to 2020 so plenty of time. Debit roll picking up 1.07 of upside.
Rolled GLD FEB 2 2018 122.0 Calls to GLD MAR 16 2018 124.0 Calls @ .93 debit (that erases all the weekly sales so far)
ADSK
#SyntheticStock – I’ve got 2 of these going…
ADSK #1:
Rolled ADSK FEB 9 2018 108.0 Calls to ADSK MAR 2 2018 111.0 Calls @ .69 debit (picking up 2.31 of upside)
ADSK #2:
Bought to Close ADSK JAN 19 2018 115.0 Calls @ .05 (sold for .47)
Sold ADSK FEB 2 2018 116.0 Calls @ .95
UNG and Tastyworks
#SyntheticShortStock – Just for fun I funded an account over at tastyworks. Taking a short position in UNG with spring right around the corner. Also, it’s a slow mover with a slight bit of contango in it and just reversed split recently. Low maintenance to get accustomed to the platform over there. So far I like it.
Haven’t found a place to copy and paste my trades to here so I’ll go the brief route:
Jan 2018 25/25/27 synthetic short with disaster call @ 2.23 debit and 4.23 max loss
4.23 max loss with 52 weeks remaining need to sell 8 cents per week to cover worse case scenario
So:
Sold UNG Jan 26 2018 puts @ .22
SteadyOptions Trial
Taking a free 10 day trial here. Been following him awhile on Twitter and seems to do pretty good. Specializes in buying pre-earnings straddles. Maybe I can stumble on to something here that we can use…similar to some Whiz trades that eventually became the #SyntheticStock and #Fuzzy trades here.
Would be fun to have pre, current, and post earnings trades going!
I’ll keep you posted. 10 day trial and then I’ll probably stick around another month with earnings really cranking up….
https://steadyoptions.com/
SPX March Hedge
#RocketManHedge -Last put sale was aggressive and open to a lot of whipsaw risk so closing it until after the shutdown gets resolved. Plenty of time to re-sell next week and still get out of the overall hedge in the green.
Bought to Close SPX JAN 19 2018 2790.0 Put @ 4.10 (sold for 9.70)
AAOI
#ShortStrangles – Still slogging away on this. Considering tripling the size and rolling it into #SyntheticStock . Might get me out of it sooner..
Bought to Close AAOI JAN 19 2018 37.5 Calls @ .05 (sold for .90)
Sold AAOI JAN 26 2018 34.5 Calls @ .70
SPX
Why are there 2 different options showing tomorrow’s date? Is there a PM settled on the monthly expiration now along with the usual one that settles at the Friday open on monthly expirations?
#SyntheticStock #Fuzzy – I’ve been…
#SyntheticStock #Fuzzy – I’ve been watching everyone trade this recently so thanks for getting it on my radar. Weeklies with decent premium and a little pullback. Exactly what I look for to get in these types of trades. I’m going hybrid again…in between a 90 day Fuzzy and a full blown LEAP. Taking it out to July to give it some time.
Sold EXAS JUL 20 2018 50.0 Puts @ 7.55
Bought EXAS JUL 20 2018 50.0 Calls @ 7.37
Bought EXAS JUL 20 2018 48.0 Puts @ 6.50
This gives a net debit of 6.32 for the Jul 2018 position. Add the 2.00 point max downside and get a max loss possibility of 8.32. Based on that, and the 26 weeks remaining in the trade I only need to average about 32 cents per week in sales to cover the absolute worst case scenario.
So:
Sold EXAS JAN 26 2018 51.0 Calls @ 1.15
CMCSA
#UOA over there today?
EDIT…it’s now a hashtag 🙂
Fast Money
Wow…what an exchange between Rich Ross and Dan Nathan. It’ll be on YouTube for sure. Thought there was going to be punches thrown. Crazy!
TEVA
#CoveredCalls – Sold covered stock at 14.97. DITM 15 strike calls not really rollable so closing it and saving exercise fees. Small loss….stock basis of 15.08 on a few shares…
GLD /GC NUGT
Somebody dumping some gold all of a sudden…
WYNN
#ReverseRolling – I’ve been in this thing for a year just selling and rolling. It’s been a sweet ticker with great premium but really running now. Closing the last of my short puts and reverse rolling the DITM short calls to very bullish bull put spreads.
Bought to Close 3 WYNN JAN 19 2018 170.0 Puts @ .25 (sold for 9.00 accumulated after a couple rolls)
Reverse Rolled the calls for $270 total credit (.54 per new spread avg) but had to increase size from 3 closed to 5 open to get the credit.
Bought to Close 3 WYNN JAN 19 2018 140.0 Calls
Sold 5 WYNN FEB 16 2018 200.0/170.0 Bull Put Spreads
Now the big picture:
Aggressive put selling for last few months has now brought in $8343 in premium. That was for 3 contracts but now has to be spread over 5 contracts giving me a basis in the new position of:
200/170 BuPS @ 16.68
If WYNN rallies then it’s all good. If WYNN tanks I’ll roll all of this into #Fuzzy positions wherever the stock finally ends up. Breakeven on the spread of 183.32. Anything around that and I’ll have to decide whether to roll or go #Fuzzy
Whew!
SPX hedge through April
With my current #RocketManHedge looking like it has a good chance of turning a decent profit ( in spite of moving against me from almost the first day) I’m adding another out about 90 days.
#SyntheticShort out through April expiration…
Synthetic short stock with a protective call. 49.00 debit with max loss of 59.00:
Sold SPX APR 20 2018 2800.0 Call @ 57.55
Bought SPX APR 20 2018 2800.0 Put @ 54.90
Bought SPX APR 20 2018 2810.0 Call @ 51.65
With 13 weeks for the trade to run need to collect 4.55 per week to cover the max loss so:
Sold SPX JAN 24 2018 2785.0 Put @ 8.00
AMZN
#SyntheticStock – Using this little dip to get my core up to the 50ma. Eventually the weekly will become rollable again. Goal is to get it expired or closed for minimal debit at some point.
Rolled June 2019 1100 synthetic up to 1150
Rolled June 2019 700 disaster put up to 760
Rolled Feb 2018 1060 call up to 1110
Did it all for a 2.84 debit. I’ll take that out of the 40 points of weeklies sold earlier…
DGX IBM NVDA T TAP
#ShortPuts #IRA – Cleaning up some of the most profitable positions that I feel aren’t worth holding for months to get the last few dollars. Lots of dry powder now…
Bought to Close DGX MAY 18 2018 85.0 PUT @ .85 (sold for 3.20)
Bought to Close IBM APR 20 2018 140.0 PUT @ 1.04 (sold for 4.30)
Bought to Close NVDA JUN 15 2018 140.0 Put @ 1.27 (sold for 4.00)
Bought to Close T APR 20 18 35.0 PUTS @ .85 (sold for 1.47)
Bought to Close TAP APR 20 2018 70.0 PUT @ .32 (sold for 1.53)
Bought to Close TAP APR 20 2018 75.0 PUT @ .80 (sold for 2.64)
SVXY
#ShortPuts #IRA – Adding one more…
Sold SVXY MAR 16 2018 90.0 Put @ 3.50
#SyntheticStock -Taking a small shot…
#SyntheticStock -Taking a small shot for fun. Pretty low risk and leaving room to add…
Sold SVXY JAN 18 2019 135.0 Puts @ 40.74
Bought SVXY JAN 18 2019 135.0 Calls @ 39.52
Bought SVXY JAN 18 2019 132.5 Puts @ 39.18
This gives a net debit of 37.96 for the Jan 2019 position. Add the 2.50 point max downside and get a max loss possibility of 40.46. Based on that, and the 52 weeks remaining in the trade I only need to average about 78 cents per week in sales to cover the absolute worst case scenario.
So:
Sold SVXY JAN 26 2018 139.0 Calls @ 1.85
SVXY
#ShortPuts #IRA – Adding one more…
Sold SVXY FEB 23 2018 105.0 Put @ 3.09
SVXY
#IRA – Sold SVXY FEB 16 2018 110.0 Put @ 3.00
MGM
#SyntheticStock #IRA – Nicely profitable and overall delta almost to zero so time to bail out. I’d maybe hang around a little longer but the size was a little bigger than I’m used to so walking away.
Closed synthetic stock and weekly calls @ 1.62 net credit.
Weekly premium sold added up to 1.60
Total credit of 3.22 with trade entry of 1.42 so net gain of 1.80
EWZ
#SyntheticStock #IRA – Up near resistance now so instead of rolling I’m booking the winner and waiting for a better entry…
Sold Jan 2019 40/40/35 Synthetic Stock @ 5.69
Bought to Close EWZ JAN 19 2018 40.0 Calls @ 3.25
Weekly premium sold of 1.85 plus closing credit of 2.44 for a total credit of 4.29. Trade entry of 3.00 so nice net gain of 1.29 in spite of my weekly sale getting blown through…
SPX
#RocketManHedge – Been selling aggressively against this one so almost back to even with 2 more months to run. Rolling aggressively here to see if 2800 is new support.
Rolled SPX JAN 19 2018 2750.0 Put to SPX JAN 19 2018 2790.0 Put @ 4.00 credit.
Position is now 38.00 premium received against a 54 max loss position. Only need about 2.00 per week going forward to break even on what turned out to be a useless hedge…
Turbocharge your Fuzzy!
#Fuzzy #SyntheticStock – No that’s not another California wildfire you smell…it’s me thinking! I’ve got a small list of tickers that I would be very interested in adding a Fuzzy or synthetic position to. With earnings coming up on all of these I was considering selling some aggressive puts down in areas I would like to add the Fuzzy anyway. Kinda like selling puts to acquire stock and then writing covered calls.
Since I tend to have bigger synthetic positions than I would with real stock, these put sales look like they could be quite profitable if the stock doesn’t happen to pull back enough. Another option would be to sell spreads too…then if the stock implodes the Fuzzy wouldn’t be down hardly any at all when it gets set. Or…sell naked puts at half size and then if the stock implodes add the other half down at that level. Either way…just roll the loss into the basis of the Fuzzy if the stock really drops…otherwise enjoy the huge gains from the put sales.
For example, one of my all time favorites is NVDA. Great premium and easy to roll. I would really be interested in going long starting down at the 200 level and adding below that. Let’s also assume that a 6 lot would be my max synthetic size.
I could sell a put ladder starting at 215 (or anywhere depending on appetite for risk) and then every 5 points below that down to 190. Premium would be about 19 dollars. Great trade if the stock rallies. If the stock tanks then put the synthetic on there while rolling the put sales into the basis. Obviously the trade would start out underwater similar to covered stock…which is ok. Plenty of time to sell weeklies to eventually profit.
I guess the point of this whole thing is that there may be some tickers you like that won’t come back enough to get an entry point. Selling the puts while waiting could pay off quite nicely too.
Expiration
Sizable position so letting it run the distance.
HIMX 11.5 calls (sold for .27)
SWKS
This was a busted #ShortStrangles that I turned into a #CoveredCalls position. After selling for quite a few weeks I’m using this bounce to book it for a .10 loss. Happy to be out and freeing up some room for earnings season.
Sold to Close SWKS Covered Stock @ 99.23 (bought for 99.33)
SVXY
#ShortPuts – In my “SVXY only” account that has done absolutely nothing this year…I’ll follow @hcgdavis ‘s lead and try to shake things up a little. Sort of a #TakeOneForTheTeam trade…
Sold SVXY FEB 2 2018 120.0 Put @ 2.31
Sold SVXY FEB 9 2018 120.0 Put @ 3.20
ISRG
#ShortStrangles #CoveredCalls – There was a method to my madness…LOL Turning inverted strangle into a covered stock position.
Current position is 435/415 Inverted Strangle @ 19.35 credit.
Rolling the 415 call out a week to 420 for a small .35 debit and taking the stock at a 416 basis. Should work nicely with earnings the following week and bigly premium available.
UVXY
#SyntheticShortStock – Next split has to be soon so I’m now fully loaded after closing the short VXX the other day. I’ve rolled my short puts out to 5 strike 2020’s. I’ll probably ride those into the ground unless we get a huge spike but should easily be offset by this position and should be able to ride 2019’s down again and 2020’s at least twice. I’ll roll them another year if I can but not sure if we can roll when they become “post split” options.
Sold to Close UVXY 30/30/55 Synthetic Short Stock @ 23.47 (bought for 14.91)
This was all just a big experiment when I first suggested it back at the last split. I’d have to say a stress free huge success along with the VXX short!
Options Bistro 