#IRA #ShortPuts – Thanks @jsd501 !
Sold WYNN JAN 19 2018 100 Puts @ 2.70
#IRA #ShortPuts – Thanks @jsd501 !
Sold WYNN JAN 19 2018 100 Puts @ 2.70
#IRA #ShortPuts – Freeing up quite a bit of margin for a few cents…
Bought to Close CAT JAN 19 2018 60 Puts @ .17 (Sold for 1.30)
#Earnings – Sold 71/74/77 Iron flies @ 2.15
Risk 85 to make 215…3 wide on a 3.45 expected move.
#TakeOneForTheTeam #VXXGame – Filled on the little pop…
Bought to Close SVXY JUL 28 2017 95.0/90.0 Bull Put Spreads @ 1.76 (sold for 3.26)
#Earnings coming in a couple weeks and I’m planning on something fairly aggressive to the long side in an #IRA so booking my #LongCallDiagonals for nice profits in a different account…
Sold to Close VRX JAN 18 2019 10.0 Calls /// Buy to Close VRX AUG 18 2017 18.0 Calls @ 8.06 credit (bought for 4.78)
Leaving the 7.5/5.0 Bull put spreads on for now…
#Earnings – Out all day so just stuck an order in to get out at breakeven. Filled pretty quickly…
Bought to Close GOOGL 980/1000/1020 iron fly @ 17.75 (sold for 17.75)
#VXXGame #ContangoETFs – Bought to Close UVXY1 JAN 19 2018 30.0/40.0 Bear Call Spreads @ .20 (sold for 1.75)
#ShortCalls #ReverseRoll – Moving my lowest strike Jan 2018 short calls over to the put side. The last time I did this I rolled to out of the money naked puts and we imploded and I was stuck with some underwater stock for months. This time rolling to higher put strikes but using spreads. If we implode now I’ll still get stock at a reasonable price…
Rolled SVXY JAN 19 2018 112.5 Calls to JAN 19 2018 105.0/95.0 Bull Put Spreads @ .12 credit.
Original sale of the calls brought in 3.07 so total premium now 3.19. With the ten wide spread no matter how far she tanks I can be in the stock at basis just a few dollars above wherever it ends up.
#ShortPuts #IRA – Freeing up some buying power…
Bought to Close SVXY AUG 18 2017 45.0 Puts @ .10 (sold for 1.15)
#ShortCalls -Selling against a long term bull put spread. Replacing this week’s expiring 335 call and staying in the week before earnings…
Sold TSLA JUL 28 2017 342.5 Call @ 2.10
#CoveredCalls – Instead of paying the exercise fee I’m saving a few bucks by closing these now…
Sold SVXY stock covered by 77.50 calls @ 77.49 (basis of 75.25)
Sold SVXY stock covered by 70.00 calls @ 69.96 (basis of 65.45)
#CoveredCalls – Still working this from last earnings. Took the stock and going the covered call route…this gets the call up to about breakeven on the stock.
Rolled ISRG JUL 21 2017 890.0 Call to AUG 18 2017 895.0 Call @ 2.30 credit
#ShortPuts – This was an #Earnings play but with the big run up I’m gonna book it too. Hopefully we get a weak day before earnings to sell something else…
Bought to Close AAOI AUG 4 2017 65.0 Puts @ 1.10 (sold for 2.25)
#ShortStrangles – #Earnings next week….
Bought to Close WYNN JUL 21 2017 133.0 Puts @ .10 (sold for 3.25)
Sold WYNN JUL 28 2017 133.0 Put @ 3.30
Sold WYNN JUL 28 2017 134.0 Put @ 3.81
Sold WYNN JUL 28 2017 135.0 Put @ 4.29
Selling aggressively against Dec 120 ITM calls. Been in this thing for a year now and love it. Good premium and easy to roll.
#VXXGame #BearCallSpreads #IRA – Added a few…
Sold UVXY JAN 18 2019 10.0/25.0 Bear Call Spreads @ 5.34
#Earnings #ShortStrangles #BullPutSpreads – Closed this the day of the announcement whenever that was…
Bought to Close URI JUL 21 2017 114.0/128.0 Strangle @ .45 (sold for 2.45)
Bought to Close URI JUL 21 2017 120.0/115.0 Bull Put Spread @ .33 (sold for 2.25)
#ShortPuts – Fat finger yesterday from phone while waiting on a gate. Lesson learned…air traffic controllers are a distraction to trading! 🙂 🙂
Bought to Close REGN JUL 28 2017 475.0 Put @ .66 (sold for 3.10)
#ShortCalls – I’m going to be selling calls against a DITM put for a long time. Glad I stayed small!
Bought to Close CMG JUL 21 2017 410.0 Calls @ .05 (sold for 2.80)
Sold CMG JUL 28 2017 380.0 Call @ 7.00
***A lot of these trades were from earlier in the week at various times..
#PerpetualRollingStrangles – Another roll going out a month this time…
Rolled GLD JUL 21 2017 121.0 Puts to AUG 18 2017 121.0 Puts @ .31 credit
#BullPutSpreads – This got profitable so quickly I feel like I’ve gotta take some off. Missed my best chance yesterday on the spike up but I’ll take it.
Bought to Close AAOI JUL 28 2017 90.0/80.0 Bull Put Spreads @ 3.25 (sold for 6.25)
#OffTopic -Barely getting online through phone tethering but hanging in there. Plug and outlet on motorhome melted (no fire thankfully) and plug is getting repaired today. Crazy night up at 2am changing out the cord…LOL Just another day in paradise! I’ll be catching up on my postings at some point…
#Earnings – Two trades in one playing it slightly to the bullish side…something different for fun since I couldn’t decide which one to do. LOL
Sold 1 URI JUL 21 2017 120.0/115.0 Bull Put Spread @ 2.25
And outside that Sold 1 URI JUL 21 2017 114.0/128.0 Strangle @ 2.45
#LongCallDiagonals – Rolling front month short call out and up a little…
Rolled SVXY JUL 21 2017 83.75 Calls to AUG 4 2017 85.0 Calls @ .15 credit
#VXXGame – Think I’ll let the last of my stock get called away this week. I’ll try selling the covered position if I can get a similar price to save the exercise fees too. Would like to replace it so going this route to limit downside if we implode but still get a great return if it continues up.
Sold SVXY JUL 28 2017 95.0/90.0 Bull put spreads @ 3.26
#TakeOneForTheTeam #VXXGame – Let’s see how this goes….staying small enough to widen or add if a roll is needed. Also to partly hedge the short SVXY calls out in Jan.
Sold UVXY SEP 15 2017 35.0/40.0 Bear call spreads @ .81
Yesterday sold this:
Sold UVXY Jan 18 2019 5.0/15.0 Bear call spreads @ 5.04
Email this morning saying I was assigned on 2 of the short 5 strike calls but…no short shares in the account and short calls are missing. Said he had a long list of accounts with the same issue. I’ll take the short position if they can make it work. Can cover the stock and re-sell the calls for a better gain than if nothing happened (as long as UVXY stays lower today). Waiting to hear the verdict from the guys researching the issue.
Was out all day yesterday but filled on a couple standing orders I had…
Bought to Close NFLX JUL 21 2017 160.0/155.0 Bull put spreads @ .10 (sold for 2.05) Thanks @Jeff !
Sold UVXY Jan 19 2018 30.0/40.0 Bear call spreads @ 2.20
Sold UVXY Jan 18 2019 10.0/25.0 Bear call spreads @ 5.08
Sold UVXY Jan 18 2019 5.0/15.0 Bear call spreads @ 5.04
Missed one yesterday in an #IRA –
Bought to Close UVXY1 JAN 19 2018 30.0/40.0 Bear call spreads @ .15 (sold for 1.75)
#Earnings – Another low probability, low risk, high reward, iron fly. Need slightly lower and inside the expected move.
Sold GS JUL 21 2017 225.0/227.5/230.0 Iron flies @ 2.16
Risk 34 to make 216…not likely but still worth a shot.
#ContangoETFs – Jeez…hope this thing doesn’t get to zero before we get a chance to sell the new options. Think it closed around 8.80 on Friday. That’s 35.20 split adjusted. Currently at 32.65. C’mon stay up!
#BullPutSpreads – Just for fun…can’t get hurt too bad with a small position. Sold the week before #Earnings .
Sold AAOI JUL 28 2017 90.0/80.0 Bull put spreads @ 6.25
Dan was right about NVDA…let’s see if he’s right about this one too. I may look to sell some ITM put spreads for earnings. Great return with limited risk in case it’s “sell the news”…
http://stockmarketmentor.com/2017/07/high-momentum-fast-growth-hot-sector-whats-not-to-like-about-applied-optoelectronics-aaoi-july-14-2017/
From vixcontango.com :
The Tipping Point Has Arrived
Over the past few months the mainstream financial media – Wall Street Journal, Bloomberg, CNBC – has started a breathless coverage of the short volatility trade. XIV has been the best performing ETF by far over the past 12 months (200%) and year to date (88%) and since it is at the top of the rankings, our reporter friends have tried to outdo each other at figuring out what is going on, how this trade came about, etc.
Of course, it was quickly discovered that the whole thing was started by the Marc Cuban/Goldman Sachs cartel and they have been secretly minting money out of this trade since the mid-80s. I am sure somewhere along the way there was a bailout by Warren Buffet who got a 15% warrant that pays in perpetuity, but they haven’t gotten to that part of the story yet. This trade obviously is quite a bit above the comprehension level of 25 year old reporters who are a couple of years out of college since it involves multiple, very complicated market structures, highly sophisticated financial instruments and a lot of incomprehensible math. If you would believe it, a Wall Street Journal reporter who got assigned to cover this area of finance roughly a year ago, asked me to explain what a “leveraged ETF” is. So a person who is just learning what a leveraged ETFs is doing reporting on the SPX options and futures markets, the VIX options and futures market and the related ETFs. Sure! No wonder, the whole thing was started by Mark Cuban! It is almost an insult that one of the most sophisticated areas of finance is covered by some of the most unsophisticated reporters. After all real reporting is probably way too much work and is not really guaranteed to generate eyeballs. See a story with the key words “Mark Cuban” and “Goldman Sachs” is a guaranteed eyeball generator…
So the untrained and financially illiterate reporters has been breathlessly talking about how the short volatility trade is “overcrowded” simply because it tops the performance rankings. All throughout March and April, I had to read this nonsense and I spent a lot of time debating these erroneous notions on Twitter. In the reporter’s limited understanding, if the XIV is going up, it must be because money is chasing it. After all, that is what happens to real estate, Amazon or any other regular stock. It’s a crazy mania and everybody is doing it! Anybody who understands the short volatility trade, however, understands that the profitability of this trade has nothing to do with the amount of money in the market and everything to do with the magnitude of perceived risks to the market. If market participants are scared a lot about something, there is a lot of money in the trade. If they are not scared, less. The spread in the VIX futures market is what matters. If the spread is wider, the trade will make more money over time and if the spread is thinner, the trade will make less money. If the spread inverts, the trade will lose money. The specific spread in the short volatility trade that matters the most, of course, is the contango of the front two VIX futures since that is what the ETFs track and ETFs provide majority of the exposure in the trade. In this respect, short volatility is not very different from many bond yield spread trades or currency futures spread trades, or oil futures spread trades and their related ETFs but somehow the reporters haven’t quite figured that out yet. So the misinformation campaign continues.
However, here is where the story is starting to get interesting. Even though at the start of the year, there was no noticeable pickup in the AUM of short volatility ETPs, due to the constant pounding on the airwaves, investors have now started looking at the short volatility trade more seriously. Obviously, we have a new short volatility fund and we are constantly talking to various investors big and small and we are doing our part in raising awareness as well, but the media’s constant coverage of this new asset class is undeniably what is starting to move money. So much so that as the VIX hit 3rd lowest reading of all time on Friday at 9.51, we had a tectonic change in volatility positioning.
Net aggregate VIX futures exposure via ETFs finally became negative yesterday!
When the media was breathlessly obsessing over short volatility in March and April, short exposure was about 1 billion dollars – less than Oct and November of 2016. Contrary to the reporting, there was a general lack of interest in the trade. I am on the front lines and I can tell you that people have been avoiding short volatility all year as they have been waiting for a volatility spike to transpire. What was actually happening earlier this year, however, was that money was leaving the long volatility trade. Trump clearly didn’t justify the fears and the World Apocalypse didn’t arrive – instead companies are making money hand over fist in earnings. Investors can stick to their shitty political beliefs only for so long before their pocket starts to hurt so… hedging stopped and the long volatility trade was abandoned. But that is still not the same as a spike in interest in short volatility.
However, since the breathless coverage in March and April was initiated, now we are definitely seeing an increase in short volatility flows. The short volatility ETPs increased AUMs from 1 billion to 1.3 to 1.5 to 1.7 and finally just this last Friday, it crossed the 2 billion mark. Long volatility ETPs have been losing AUM steadily and went from 4 billion at the election to 1.5B on Friday. This puts us in a state of net volatility exposure to the short side for the first time since Aug 2015 – Feb 2016 period (the Dealers Exposure chart below shows delayed data so the latest ETF AUM changes aren’t reflected. Dealers Exposure is very similar to the net ETP exposure since ETP positions are reflected as Dealer Open Interest). And we all know what happened in Aug 2015. Basically, what is happening here is people are staring at this 88% YTD return of XIV and want a piece of the action. And of course, the cavalry is arriving at the scene just as the VIX is hitting all-time lows. Just like in 2014 and 2015, great timing! [eyeroll]
SVXY has gotten an additional $600M in AUM over the last 2 weeks to jump from about $600M to $1.2B. I did mention on Twitter that it has a favorable 60/40 tax status and I immediately had to answer dozens of people on Twitter and in email. Then I did put out a big white paper (Enhancing Portfolios With Short Volatility) a couple of weeks ago as well which has so far gotten roughly 250 downloads. I think that might something to do with the sudden rise of SVXY. Very interestingly now, SVXY is the most popular volatility product as of Friday! VXX is now in second place below 1 billion dollars and XIV in third place with about $700 million. UVXY had a monster dip in AUM on Friday. It appears that a bunch of money moved from UVXY into SVXY on Friday and a bunch of money left VXX. The total AUM is down to 3.7 billion. I guess some folks have decided that it is time to make all the long volatility losses back by shifting to short volatility. [another eyeroll]
You have been warned!
#Earnings #ShortPuts – This thing caught an upgrade today and looks like a possible short squeeze. IV through the roof for earnings also. Gonna go ahead and take an earnings shot at the 50ma. Selling now in case she continues up but can still add on a pullback. Thanks @Bobbie and everyone else that’s been watching this one…
Sold AAOI AUG 4 2017 65.0 Puts @ 2.25
#LongCallDiagonals – Rolling front month up and out a week…
Rolled SVXY JUL 14 2017 165.0 Call to JUL 21 2017 167.5 Call @ .05 debit
#ReverseRoll #ShortStrangles – I may let some stock go next week via the covered call route. Adjusting my August strangle to possibly get long again but also limiting risk.
Originally sold 80/180 strangle for 3.55 but starting to wonder about the 180 call so pulling the @Jeff reverse roll.
Rolled SVXY AUG 18 2017 180.0 Call to AUG 18 2017 185.0/175.0 Bull Put spread @ 2.20 credit.
Total premium received is now 5.75 on the 10 wide spread. Keeps going up it’s all good. If she tanks no matter how low it goes I’ll be in the stock at a basis 4.25 above where it’s trading at the time…lower the better if an implosion happens! Now…do I resell the call side? 🙂
#ShortPuts – Surprised this filled with the mark at 45 cents…
Bought to Close REGN JUL 28 2017 425.0 Put @ .10 (sold for 2.00)
Earnings the following week on 8/3. Might wait until then to sell another one or possibly get aggressive the week prior then roll into earnings if needed.
#ShortStrangles – Can’t catch a break on Fridays on this thing. Rolling again….these are sold against DITM short calls so the drop is a good thing long term. Was trying to whack it pretty hard in the short term too though. Grrr…
BTW…just a coupe days ago Dr. J said he’s long and strong on this. Probably won’t get mentioned today since he seems to never be on the wrong side of a trade…LMAO!
Rolled WYNN JUL 14 2017 134.0 Puts to JUL 21 2017 133.0 Puts @ .20 credit
#LongCallDiagonals – Looking at an exit point up around 40 if she gets there. Adjusting the front month calls to keep plenty of long deltas…
Two-thirds of position:
Bought to Close EWZ JUL 21 2017 36.5 Calls @ .20 (sold for .56)
Sold EWZ AUG 18 2017 37.0 Calls @ .60
One-third position:
Rolled EWZ JUL 21 2017 34.5 Calls to SEP 15 2017 36.0 Calls @ .06 debit (original sale of .41)
These will keep long deltas all the way to the 41 area according to the TOS analyze tab. If we get close to that I’ll book it and look for a re-entry point…
#ShortCalls – Keeping my size in check…booking a gain and re-selling safer. Thanks guys for the new higher strikes!
Bought to Close SVXY JAN 18 2019 320.0 Call @ 9.75 (sold for 11.75)
Sold SVXY JAN 18 2019 330.0 Call @ 8.30
#ShortPuts – Filled at the bell. Thanks @hcgdavis !
Sold XBI AUG 18 2017 71.0 Put @ .85
Sold XBI AUG 18 2017 72.0 Put @ 1.03
Sold XBI AUG 18 2017 73.0 Put @ 1.27
#ShortStrangles – Trading short term against a longer term bull put spread…
Bought to Close TSLA JUL 14 2017 357.5 Call @ .06 (sold for 2.10)
Sold TSLA JUL 21 2017 335.0 Call @ 2.55
#ShortPuts #ShortStrangles – Looks like the selling is done for now. Getting what I can out of the long put side of some put spreads. Selling calls against the remaining short puts as well.
Sold to Close NVDA JUL 21 2017 150.0 Put @ 4.55
Sold to Close NVDA JUL 21 2017 150.0 Put @ 4.75
Sold to Close NVDA JUL 21 2017 150.0 Put @ 5.00
#PerpetualRollingStrangles – Increasing size just a little…
Sold TLT OCT 20 2017 115.0/130.0 Strangles @ 1.17
#ShortStrangles – Taking care of this early to get the theta back up to a decent level…
Rolled EWW JUL 21 2017 50.0 Calls to AUG 18 2017 50.0 Calls @ .27 credit
Sold EWW AUG 18 2017 53.0 Puts @ .91
Will continue watching next week’s 52.5 puts to squeeze a few more pennies out of them…
#TakeOneForTheTeam from a couple weeks ago…
Originally sold the slightly ITM 166/161 BuPS @ 3.25
Then:
Sold to Close SVXY JUL 7 2017 161.0 Put @ 5.40
This will give me the stock at a basis of 157.35. Going out two weeks to cover it using slightly ITM for some downside protection…still a possible profit of almost 5 points (4.65) while reducing basis to close to 150 (150.35)
Sold SVXY JUL 21 2017 155.0 Call @ 7.00
#ShortStrangles – Sold against some further out ITM calls. Would like to be out of these by earnings to really take advantage of the high IV that week.
Rolled WYNN JUL 7 2017 135.0 Puts to JUL 14 2017 134.0 Puts @ .30 credit
#ShortStrangles – Sold SVXY AUG 18 2017 80.0/180.0 Strangle @ 3.55
#PerpetualRollingStrangles – Using this pullback to book some gains and possibly get less inverted or maybe even to a straddle. These were sold against 121 strike puts…
Bought to Close GLD JUL 21 2017 113.0 Calls @ 3.65 (sold for 4.40)
#ShortCalls – Don’t trust this thing….booking it.
Bought to Close CMG JUL 7 2017 430.0 Call @ .20 (sold for 6.20)
#ShortCalls – Taking some risk off. I’ll look to re-load after the split on a spike.
Bought to Close UVXY JAN 18 2019 60.0 Calls @ 1.79 (sold for 3.50 average)
#ShortCalls – I’ve been over writing these at about a 2 for 1 rate so taking some risk off since she’s bouncing…
Bought to Close NVDA JUL 28 2017 175.0 Calls @ .30 (sold for 1.10)
#ShortCalls – Still reducing basis of a DITM put. Replacing this week’s expiration with another one…staying in the week before earnings.
Sold CMG JUL 21 2017 425.0 Call @ 3.30
#LongStock – Missed posting this scalp earlier Friday:
Sold XIV stock @ 84.60 (bought for 82.57)
Kind of interesting reading if you’re bored…have to enter an email and a name to download.
https://vixcontango.com/Site/DownloadWhitePaper
This caught my eye:
Liquidation (Unexpected Overnight Volatility Spike) If the VIX futures jump more than 80% in a day, the prospectus of the Short Volatility ETN (XIV) stipulates that Credit Suisse may terminate the instrument. While this has not happened yet while XIV has been around, it is a feasible scenario. If the XIV had been around for the October 19th, 1987 Black Monday market crash that saw the S&P 500 lose in excess of -20% in one day, the XIV would almost certainly have been bankrupt on that day. But even without bankruptcy, the XIV can experience dramatic one day losses. An example of that was during the British European Exit Referendum in June of 2016 (Brexit) when the S&P 500 dropped -5% overnight due to the unexpected result. The VIX spike was very big that day because market participants weren’t positioned correctly. As investors rushed to buy systemic market hedges (SPX put options), the VIX jumped 49.3% resulting in the biggest daily drop for the XIV ever of -26.8%. Historically, the VIX has had 4 days with spikes over 50% with the maximum spike of 64% ever recorded happening on February 27th, 2007 when there was massive selloff on the Shanghai exchange which spilled over into the US markets. Unimaginable events such as a sudden nuclear explosion in a major market center could cause an even bigger VIX spike thus putting an unmanaged short volatility strategy and the XIV at a significant liquidation risk.
#ShortStrangles – Still selling weeklies against some slightly ITM short calls…
Rolled WYNN JUN 30 2017 135.0 Puts to JUL 7 2017 135.0 Puts @ 1.50 credit
#IRA #LongCallDiagonals – Whiz style…was gonna do this after the split but taking advantage of the pullback now. One quarter position size just in case the drop accelerates.
Bought SVXY JAN 18 2019 150.0 Call @ 50.53
Sold SVXY JAN 18 2019 100.0/80.0 Bull Put Spread @ 7.03
And:
Sold SVXY JUL 14 2017 165.0 Call @ 3.00
Total position is a net debit of 40.50 with 81 weeks to run…need to collect .50 per week on the front month calls to breakeven.
#ShortStrangles – Sold 1 SVXY JAN 18 2019 80.0/320.0 Strangle @ 23.24
#ShortPuts #IRA – Sold SVXY SEP 15 2017 90.0 Put @ 2.55
#CoveredCalls – Hanging on to the stock for a few more weeks…picking up another 2.20 of potential upside while keeping plenty of downside protection.
Rolled SVXY JUN 30 2017 138.0 Call to JUL 21 2017 140.0 Call @ .20 credit
#ShortCalls – Double selling against some ITM puts. Closed this week’s already and have a stop set on July monthlies at 50 percent of max profit. That all seems good so adding another batch…still keeping everything before earnings week.
Sold NVDA JUL 28 2017 175.0 Calls @ 1.10 (half position for now)
#PerpetualRollingStrangles – Again…
Bought to Close TLT JUN 30 2017 126.0 Puts @ .04 (sold for 1.00)
Sold TLT JUL 21 2017 127.5 Puts @ .95
#ShortCalls – Closing a little scalp against a long position…
Bought to Close NVDA JUN 30 2017 175.0 Calls @ .05 (sold for 1.10)
#Futures – A little more basis improvement on the short /ES hedge…so far keeping up with the rise. Should pay off someday when we get an Aug 2015 repeat.
SOLD /ES AUG 17 (Wk3) 2325 PUT @ 11.00
#IRA #ShortPuts – Sold REGN JAN 19 2018 350.0 Put @ 5.90
#ShortPuts – Back in but staying away from call sales…
Sold REGN JUL 28 2017 425.0 Put @ 2.00
In anticipation of the next split I’m selling the rest of this position. Order has been in for awhile but wasn’t getting filled so came down a nickel…throw ’em in the drawer and check in six months. Got 2.92 for the first batch…taking a little less here.
#IRA #VXXGame – Once we get another reverse split and a little more drop after that I’ll cover these. Looking for 50 percent of max…
Sold UVXY JAN 18 2019 5.0/15.0 Bear call spreads @ 1.92
#LongCallDiagonals – Trying to take my lessons learned from AMZN and GOOGL. This thing is coming out of a daily squeeze and maybe just getting started. Rolling front month out and up early…this picks up about 100 deltas on the overall position.
Rolled VRX JUL 21 2017 16.0 Calls out and up to AUG 18 2017 18.0 Calls @ .03 debit
Still long Jan 2019 10 calls and short Jan 2019 7.5/5.0 Bull put spreads…
#ShortStrangles – What a move! I sure didn’t see a two month 200 point move in a 350 dollar stock coming. Had something like 350/450 strangles when this thing took off. Rolled the 450 out to Sep and started rolling the 350 up as she climbed. Wasn’t nearly aggressive enough and kept getting further behind. Finally bailed on the whole thing yesterday when I heard new health care proposal could be pretty friendly to drug companies.
Long story short…gave back all of my REGN profits for the year plus about another 25 points. Being hard headed, I’ll set that aside and look to get it back on next pullback. Grrr…hate getting thumped by one of my all time favorite tickers. I thought we were friends!
#LongCallDiagonals – Long term diagonal (Whiz style trade) is pretty much dead money now so booking it. With the near vertical rise in this thing the short term call got away from me. So far ITM now that profit is basically capped on the LEAP call. After rolling the LEAP call up a couple times to reduce risk, I’m closing the whole thing except the Jan 2019 500/400 BuPS which I’ll close if I ever need the buying power. Ideally we get a pullback to start all over again.
Bought to Close GOOGL DEC 15 2017 900.0 Call @ 110.65
Sold to Close GOOGL JAN 18 2019 850.0 Call @ 194.70
After roll ups of LEAP call basis was down to 31.00 and front month sales brought in another 13.9 points.
When it’s all said and done a net gain of 66.95. Worked pretty good but having that front month call in the way really hurt. Next time I’ll be more aggressive getting out of the way. Of course, who could’ve seen a 250 point six month run coming…wow!
#LongCallDiagonals – Long term diagonal (Whiz style trade) is pretty much dead money now so booking it. With the near vertical rise in this thing the short term call got away from me. So far ITM now that profit is basically capped on the LEAP call. After rolling the LEAP call up a couple times to reduce risk, I’m closing the whole thing except the Jan 2019 500/400 BuPS which I’ll close if I ever need the buying power. Ideally we get a pullback to start all over again.
Bought to Close AMZN DEC 15 2017 865.0 Call @ 167.20
Sold to Close AMZN JAN 18 2019 850.0 Call @ 239.1
After roll ups of LEAP call basis was down to 30.75 and front month sales brought in another 38.7 points.
When it’s all said and done a net gain of 79.85. Worked pretty good but having that front month call in the way really hurt. Next time I’ll be more aggressive getting out of the way. Of course, who could’ve seen a 300 point six month run coming…wow!
#ShortStrangles – Making an adjustment but adding a little downside protection…
Started out as a Jan 2018 175/500 strangle @ 6.10 credit
Rolled 175 to 250 @ 7.40 credit
Today rolled 250 to a 300/200 bull put spread @ 6.27 credit.
Position now 300/200 BuPS against 500 call @ 19.77 credit.
Can this thing see 500 by Jan 2018? TOS says 85 percent chance it won’t get there and a 70 percent chance 300 won’t get hit so still slightly higher downside risk.
#ShortStrangles – Replacing this week’s expiration…still selling against ITM calls.
Sold WYNN JUN 30 2017 135.0 Puts @ 1.35