#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.
#Earnings #ShortStrangles – Up 44 percent of max already. Let it ride? 🙂
#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. 🙂 🙂
#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.
#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)
#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
#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
#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
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
#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…
#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
#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
This is a cool feature. Sort your watchlist by earnings date and easily see if it’s before or after the bell. Very nice!
#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)
#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.
#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
#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…
#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…
#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
#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)
#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
#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
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/
#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)
#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
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 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
#UOA over there today?
EDIT…it’s now a hashtag 🙂
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!
#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…
Somebody dumping some gold all of a sudden…
#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!
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
#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…
#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)
#ShortPuts #IRA – Adding one more…
Sold SVXY MAR 16 2018 90.0 Put @ 3.50
#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
#ShortPuts #IRA – Adding one more…
Sold SVXY FEB 23 2018 105.0 Put @ 3.09
#IRA – Sold SVXY FEB 16 2018 110.0 Put @ 3.00
#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
#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…
#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…
#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.
Sizable position so letting it run the distance.
HIMX 11.5 calls (sold for .27)
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)
#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
#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.
#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!
Here’s one out of the dust bin. Just did a reverse split last week and with nat gas up during the arctic blast I’m (sort of) considering #SyntheticShortStock . I’d rather use BOIL but due to the lack of weeklies and no recent splits UNG caught my eye.
Weekly premium is kinda weak but it’s a slow enough mover that over the long haul it could really add up…
No position yet…
#SyntheticStock – Not really using LEAPS and probably too long of a duration to qualify as a #Fuzzy. More of a hybrid here….thanks @smasty for the idea.
Sold KR JUL 20 2018 28.0 Puts @ 2.27
Bought KR JUL 20 2018 28.0 Calls @ 2.68
Bought KR JUL 20 2018 26.0 Puts @ 1.44
This gives a net debit of 1.85 for the Jul 2018 position. Add the 2 point max downside and get a max loss possibility of 3.85. Based on that, and the 27 weeks remaining in the trade I only need to average about 14 cents per week in sales to cover the absolute worst case scenario. I’m adding a small hedge out a couple weeks. This would keep me on pace for weekly sales to cover max loss but also still give the trade long deltas all the way up to about 30.75.
For some reason, I don’t have the ba**s to carry these completely unhedged. For now I’m changing it up a little by selling the first hedge with a lot of room instead of being so aggressive right out of the gate.
Sold KR JAN 26 2018 29.5 Calls @ .25
#SyntheticStock – Rolling weekly up and out picking up upside and long deltas…
Rolled EWW JAN 12 2018 49.0 Calls to EWW FEB 16 2018 50.0 Calls @ .10 credit
#SyntheticStock – Don’t trust it. Could wake up tomorrow and be up 30.
Bought to Close REGN JAN 12 2018 390.0 Calls @ .10 (sold for 3.55)
#SyntheticStock – Nice winner I’m planning on closing before earnings. It’s up near resistance but also in a nice squeeze so rolling weeklies up and out picking up a lot of long deltas. Hoping for a break above 34.50…
Rolled MGM FEB 2 2018 32.5 Calls to MAR 16 2018 33.0 Calls @ .28 credit
Scrolling through my watchlists looking for some #Fuzzy candidates. Here’s an interesting one.
Going out to Jan 2019 a 23/23/20 is only 3.55. Max loss 6.55 with 53 weeks to go. With the crazy premiums in this thing you could almost have that risk covered in 5 or 6 weeks. Then…let it ride un-hedged as a freebie. Otherwise, just 12 cents a week to cover a trip to zero…
#SyntheticStock – Nice base being built here and entering a squeeze. Adding small in the only account without biotech exposure.
Sold AGN JAN 18 2019 175.0 Puts @ 18.73
Bought AGN JAN 18 2019 175.0 Calls @ 18.78
Bought AGN JAN 18 2019 170.0 Puts @ 16.57
This gives a net debit of 16.62 for the Jan 2019 position. Add the 5 point max downside and get a max loss possibility of 21.62. Based on that, and the 53 weeks remaining in the trade I only need to average about 41 cents per week in sales to cover the absolute worst case scenario.
So:
Sold AGN JAN 19 2018 180.0 Calls @ .73
#Fuzzy – Still no position but getting perky.
Jan 2020 20/20/18 #SyntheticStock only requires 3.5 cents per week to cover core and max loss. Hmmmm…
#ShortStrangles – Clearing out another strangle. Looking at a possible #Fuzzy on this one if it drops a little more.
Bought to Close AVGO FEB 2 2018 250.0/290.0 Strangle @ 3.15 (sold for 5.00)
#SyntheticStock – Has to turn around at some point but doesn’t look like anytime soon. This week’s short calls look safe so selling next week.
Sold REGN JAN 19 2018 380.0 Calls @ 1.80
Initial trade required 90 cents a week to cover everything.
#ShortStrangles – Not liking the way this one is acting. It might bounce here…or not. Taking a tiny winner.
Bought to Close NTES JAN 26 2018 325.0/400.0 Strangle @ 5.48 (sold for 6.20)
#SyntheticShort – With VXX going away I’m closing this short down. No where to roll the short puts and a big volatility spike might not leave time for it to come back down. Turned out pretty good since I had fewer short puts than synthetic short stock. Re-load on next UVXY split…
Sold to Close 13 VXX Jan 2019 50/50/55 synthetics and Bought to Close 9 VXX JAN 18 2019 28.0 Puts
Net gain on each synthetic of 3.85. Not great but worth the margin for sure…
#ShortStrangles – Last time I got involved with this one it was screaming higher but worked out ok. Looks like I’ll be rolling this into an earnings trade. Big roll of short put to try to corral this thing.
Rolled ISRG JAN 12 2018 400.0 Put to JAN 12 2018 425.0 Put @ 8.60 credit
Position is now 425/400 inverted @ 25.95 for Friday.
Anything between the strikes is a small winner…but with all the premium I’ll probably roll to earnings week and see what happens.
#ShortStrangles – Going straddle for Friday.
Rolled 370 put up to 400 @ 8.60 credit.
Now sitting at 400 Straddle @ 17.35
Breakeven from 382.65 to 417.35
Missed the segment on TT this morning about utilities. Searched back through the forum here and see some of you guys have played it over the last year or two.
Looking like a nice possibility as a #SyntheticStock or a #Fuzzy. Probably low risk and slow moving for a long term play…
For example:
Jan 2020 52/52/50 Synthetic would only require selling about a nickel per week to cover max loss. Take the trade with a decent size and get a little bounce could be a nice winner.
#ShortPuts -Throwing this out there in an #IRA ….
Sold REGN APR 20 2018 300.0 Put @ 3.20
#ShortPuts -Throwing these out there in an #IRA ….
Sold XBI MAR 16 2018 83.0 Put @ 2.60
Sold XBI MAR 16 2018 80.0 Put @ 1.68
Sold XBI JUN 15 2018 75.0 Put @ 2.13
#SyntheticStock – Posted on this over the weekend so giving it a try as an experiment. Rolling synthetic core up 50 and front month call up 50 and receiving a 3.07 credit. I’ll wait until after earnings to see if any more adjustment is needed. Assuming the stock doesn’t blast off on earnings, this roll should make the weekly a little more rollable in the future.
Rolled AMZN JUN 21 2019 1050.0/1050.0 Synthetic Stock up to 1100.0 in same expiration @ 48.50 credit
Rolled AMZN JAN 19 2018 1010.0 Call to FEB 16 2018 1060.0 Call @ 45.43 debit
#SyntheticStock – Booking this one before it gets away…another one straight up. Maybe an earnings pullback to re-enter. We can hope!
Sold to Close 190/190/185 synthetic @ 67.80
Bought to Close 202.5 short call @ 21.60
Net credit to close of 46.20 plus weekly premium of 2.35 for total credit of 48.55
Entered the trade for 41.00 so a nice little 7.55 gain. Could’ve been better but just went up too fast…
#SyntheticStock – Same as BABA but more extreme….giving back a little of the weekly premium I’ve sold but picking up some more upside.
Rolled BIDU JAN 12 2018 237.5 Calls to FEB 23 2018 250.0 Calls @ 2.34 debit.
#SyntheticStock – I don’t mind things going up but does it always have to be STRAIGHT UP? 🙂 Rolling front month short calls up and out.
Rolled BABA JAN 19 2018 180.0 Calls to BABA FEB 9 2018 185.0 Calls @ .37 debit
#PerpetualRollingStrangles – Filled Friday but missed it. This entire position sat inverted for all of 2017 with rarely either side getting taken out. Still made 2.5 times margin required. I’ll keep it going…nice steady theta day after day with little P/L change due to the inversion. 6 contracts each for 4- 5k margin…
Rolled TLT JAN 19 2018 127.0 Puts to TLT FEB 16 2018 127.0 Puts @ .75 credit.
Everything now in Feb monthly. 121/123 calls and 127/130 puts. Showing $40 theta per day for 4500 margin with a delta of +12. How did I decide on the position size? Stress tested it through TOS Analyze tab using TLT at 87 and/or 143. Using it’s most extreme values over the last 10 years the risk was satisfactory considering the annual returns.
#ShortStrangles – Earnings not for 2 more weeks but IV still hanging in there this week for some reason. Squeezing the strangle in a little for additional premium. Expires Friday…
Rolled 350 put to 370 for 2.75 credit.
Now sitting at 370/400 @ 8.75
#RocketManHedge – Core position in March…selling against it.
Bought to Close SPX JAN 10 2018 2700.0 Put @ .35 (sold for 11.70 net after a roll up)
Sold SPX JAN 17 2018 2725.0 Put @ 5.00
Scroll to the very bottom for the Cliff’s notes if you’d like… 🙂 🙂
#SyntheticStock #Fuzzy – While criss crossing the country this week I’ve had plenty of time to think about things (besides the mountains around Eagle CO and the cyclone in NYC…LOL)
I’ve got a couple synthetic long positions where the weekly call sale has gone ITM. Not surprising in this market but still annoying. Most of the trades are still profitable but it’s more fun when they are REALLY profitable. So…what can I do once they’re so DITM that rolling up and out becomes nearly impossible?
I’m going to use my most extreme example here…
Currently holding AMZN Jun 2019 synthetic short at 1050. It started out as 1000 synthetic but I rolled up a couple months ago to bring a little cash back in. For quite awhile I was selling weekly calls around the 950 to 1000 level while AMZN chopped around down there. They then had an earnings surprise and stock took off and hasn’t stopped since.
My current short call is Jan 2018 monthly at 1010. Obviously DITM so what can I do?
When looking at the overall position and imagining this at expiration, my profit is capped at the level of the short call so the goal is to get that as high as possible.
My plan is to roll the synthetic up to a level I’m comfortable with as far as AMZN support goes. Then…take the credit and use it to roll the ITM short call up. This accomplishes two things. First, the call can be rolled for around even and up a slightly greater distance than the synthetic moves up. Secondly, the short call becomes less DITM so it becomes more rollable in the future (that’s the most important thing I think).
So…what’s the risk? An AMZN implosion is the risk…LOL. For now I’m not rolling up the disaster put since the DITM short call actually provides a nice hedge of it’s own on pullbacks. If the short call were to become out of the money then that might be a signal to ease the disaster put up. Until then, I’m not wasting cash on it.
Hopefully I’ve explained this ok. Other than the free fall of the stock, are there other risks I’m not seeing or considering? It seems to be a reasonable shot at capturing further upside with limited risk increase. I haven’t run the numbers yet on cheaper stocks but looking at VRX now…
Long story short…roll up the synthetic and use the credit to roll up the DITM call IF and only IF you’re confident in the stock holding it’s upside move.
#IRA #ShortPuts – Freeing up some margin in the IRA. With earnings season cranking up hopefully get a chance for some more #FallingKnife trades…
Bought to Close DGX May 18 2018 80.0 Put .52 (sold for 2.20)
Bought to Close GIS Apr 20 2018 47.5 Puts @ .25 (sold for 1.62)
Bought to Close NVDA MAR 16 2018 150.0 Put @ .41 (sold for 3.69)
Options Bistro 