Since I’m nearly all cash in an #IRA that I use strictly to trade SVXY I’m gonna try something here. While waiting on the big pullback I’m going to sell one aggressive put every couple weeks for juicy premium. If the pullback doesn’t come for months it’ll be a nice income…when the pullback does come it’ll be very easy to average this single position way down to a better level.
Sold SVXY DEC 16 2016 80.0 Put @ 3.20
#FibwizardStyle SOLD /ES DEC 30 2016 (EOM) 2110/2010 Bull put spreads @ 4.80
Selling against a short call…
#ShortPuts – Aggressive here so will be watching closely…
Rolled Dec 16th 200 puts out and up to Dec 23rd 210 puts @ 1.33 credit.
Total credit now up to 2.58…
#ShortCalls – Still selling weeklies against ITM puts.
Sold TLT DEC 9 2016 120.5 Calls @ .96
#ShortCalls – Still selling weeklies against ITM puts.
Sold GLD DEC 9 2016 112.5 Calls @ 1.22
#CoveredCalls #IRA Setting up next week…
Buy to Close GOOGL DEC 2 2016 792.5 Call @ .96 (sold for 2.63)
Sold GOOGL DEC 9 2016 790.0 Call @ 4.77
#CoveredCalls#IRA Setting up next week…
Bought to Close AMZN DEC 2 2016 790.0 Call @ .21 (sold for 4.68)
Sold AMZN DEC 9 2016 775.0 Call @ 3.67
#CoveredCalls Rolled this week’s 73.5’s out two weeks to monthly 74.5’s at even. Scratching another dollar upside out of it…
EDIT…actually had it in for even but filled at .22 credit. 🙂 🙂
#Earnings Closed 75 puts @ .05 and still holding 83 calls.
Original trade of 75/83 strangles @ 1.45
#ShortPuts #IRA Thanks for the idea Jeff…
Sold CMG Jan 6 2017 370.0 Put @ 4.80
Using this pullback as an opportunity to roll a threatened short call. Just in case the ABX strike is settled over the weekend, I’m getting out of the way (partially) even though a pop to 800 isn’t out of the question if the strike is settled.
These are being sold against a longer term position similar to the GOOGL trade…
#Rollup Rolled this week’s 777.5 call (sold for 3.43) out to next week’s 790 @ 1.25 credit
Rolled Dec 134 puts out to Mar 2017 133 puts @ .12 credit
Continuing to collect the weekly dividend against the ITM puts…
#ShortCalls Sold TLT DEC 2 2016 121.0 Calls @ .73
These types of positions aren’t as bad as they look. For example, here the short puts are 13 dollars ITM but I’ve collected 6.43 in weekly premium since starting the position. As long as I can keep collecting 75 to 80 cents a week and gradually rolling down the puts it should work out. I look at it like collecting a 2 percent monthly dividend…24 percent dividend yield ain’t bad!
#ShortCalls Bought to Close GOOGL NOV 25 2016 795.0 Call @ .13 (sold for 2.25)
Sold GOOGL DEC 2 2016 792.5 Call @ 2.63
Rolled Dec 120 puts out to Feb 119 puts @ .05 credit
Continuing to collect the weekly dividend against the ITM puts…
#ShortCalls Sold GLD DEC 2 2016 114.0 Calls @ 1.10
I’ve got enough biotech but LLY looks like a possible put sale…
#Futures I’ve been paper trading this for awhile and it seems to really work well. A low risk way to take advantage of contango all the time…not just during or after volatility spikes.
Looking at spot VIX as well as the futures…there is generally about a 2 point difference ($2000) between spot and front month and between front month and second month. As time passes with no volatility the front month future will gradually decrease to match spot while second month drops a similar amount (contango). If there is a volatility spike, spot will generally be the first to react with front month future lagging behind and second month future lagging even further behind since volatility is generally a short term phenomenon. Once spot exceeds front month we will be approaching a backwardation scenario.
So…with all that in mind, what’s the trade?
I’ve been shorting the front and second month futures against a similar number of short eminis. I keep a stop on the futures positions of 1.5 to 2 points higher and also sell a well out of the money put against the short emini. This allows 3 things to happen.
1. Drastically reduces risk on a volatility spike using the stops while continually cashing in on contango during long periods of low volatility.
2. If stopped out of the short volatility positions, the short /ES should make up for all the loss and probably more.
3. By selling the well out of the money /ES put I can still gradually raise my basis of the short /ES position but still give enough downside protection to make up for more than the volatility stop out loss.
Any thoughts or ideas are welcome. Still haven’t put the trade on in a real account. I probably will on the next decent volatility spike we get.
Happy Thanksgiving…just throwing some “food for thought” out there to chew on over the holiday weekend!
#IRA No sense waiting a month for 3 cents…
Bought to Close UVXY DEC 16 2016 35.0/45.0 Bear call spreads @ .03 (sold for 1.00)
#Futures Currently short a Dec 2160 call sold for 17.00
SOLD /ES DEC 16 2150/1950 Bull Put Spread @ 11.50
This will raise the basis of the short call to 2188.50 and give a downside breakeven of 2121.50 on the put spread. I’ll gladly take the short position at 2188.50 and then sell weekly puts against it. Regrowing the hedge after booking the profits on the last one on election night.
I let a few go all the way to the finish line this week…
EBAY 29 Calls (sold for .35)
EWW 44 Calls (sold for 1.57)
GLD 116 Calls (sold for 3.35)
TLT 122 Calls (sold for 1.35)
Since this is in an #IRA I can’t sell the new one until closing the old one. So, to take advantage of the weekend:
Bought AMZN NOV 18 2016 765.0 Call @ .16 (sold for 2.50)
Sold AMZN NOV 25 2016 777.5 Call @ 3.43
Bought to Close SVXY DEC 16 2016 40.0 Put @ .10 (sold for 2.25)
Bought to Close SVXY DEC 16 2016 45.0 Put @ .15 (sold for 2.50)
Freeing up some room in the #IRA for next selloff….
Sold GOOGL NOV 25 2016 795.0 Call @ 2.25
Selling against a Jan 2019 position…
#CoveredCalls Replacing this week’s expiration…
Sold EBAY DEC 16 2016 29.0 Calls @ .52
Replacing this week’s expiration…
Sold EWW NOV 25 2016 44.0 Calls @ .40
Starting a Jan position…
Sold DUST JAN 20 2017 75.0/85.0 Bear call spread @ 1.60
Replacing today’s expiration…
Sold GLD NOV 25 2016 115.5 Calls @ .76
Getting out of the way here….looking a little too close for comfort. Afraid of capping the upside on my long call diagonal. Cost myself a fortune by not getting out of the way on the similar GS position. We’ll see where she is tomorrow before selling next week.
Bought to Close GOOGL NOV 18 2016 790.0 Call @ 1.95 (sold for 2.70)
Out of super bulls with 1.19 credit (bought for .03)
Sold EWZ JAN 20 2017 30.0 Puts @ 0.98
Closed a bunch of IBB yesterday so looking for some biotech exposure in the #IRA . Here’s a starter..hoping for a deeper pullback to add.
Sold REGN JAN 20 2017 350.0 Put @ 5.70
#IRA #CoveredCalls Adding a point and a half and a dime credit…rolling out 2 weeks.
Buy to Close SVXY NOV 18 2016 72.0 Calls @ 6.60
Sell to Open SVXY DEC 2 2016 73.5 Calls @ 6.70
#IRA Nov 20/25 bear call spreads expired today (sold for .90 average)…first time I’ve used these but selling spreads on any small pop seems like a good bet.
The long term “Whiz” trade on GS worked so nicely, (would’ve been much better with a gradual increase!) I’m adding another one on GOOGL. Placed similar trade on AMZN after the earnings drop… #IRA
Bought to Open GOOGL JAN 18 2019 650.0 Call @ 195.00
Sold GOOGL JAN 18 2019 500.0/400.0 Bull put spread @ 12.00
And every week for the next 113 weeks (unless it’s screaming higher):
Sold GOOGL NOV 18 2016 790.0 Call @ 2.70
Following Ramie from yesterday. Looks like it’s rolling over at resistance with plenty of time to sell some of these again.
Bought to Close IBB Nov 18 2016 270 put @ .20 (sold for 6.50)
Bought to Close IBB Dec 16 2016 260 put @ 2.00 (sold for 6.40)
Bought to Close IBB Jan 20 2017 250 put @ 3.10 (sold for 6.60)
Sold CVS JAN 20 2017 70.0 Puts @ 1.45
Sold EWW JAN 20 2017 38.0 Puts @ 0.80
In the #IRA selling against a long term 2019 position…
Bought to Close AMZN NOV 11 2016 785.0 Call @ .01 (sold for 6.40)
Sold AMZN NOV 18 2016 765.0 Call @ 2.50
Going 4 wide iron fly @ 3.20 with expected move of 5.
Out of the trade that was discussed earlier. Still holding the Jan 2018 bull put spreads that are doing quite nicely. Might help to make up a little for my upside being capped with the short call sale. In a similar trade with AMZN Jan 2019 that I’m considering adding to also.
Bought to Close TLT NOV 18 2016 128.0 Calls @ .12
Don’t have the current basis on those since I’m a couple days behind on my paper work (gallbladder and all…LOL) I do remember that they started out higher and rolled down a couple times so decent trade.
Then:
Sold TLT DEC 16 2016 126.0 Calls @ 1.28
Bought to Close UVXY NOV 18 2016 30.0/40.0 Bear call spreads @ .03 (sold for 1.32)
A few months ago I put on a long term trade in Jan 2018. Sold put spreads and bought calls and as a basis reduction was selling short term calls. I sure didn’t see a 20 point 4 day move coming so the short calls are DITM with no rolling options available without going out to April (ouch).
It’s nicely profitable so:
1. Considering just taking the whole thing off and maybe waiting for a pullback to re-enter….possibly holding the 2019 bull put spreads to at least make a little if it continues up.
2. Roll short calls out to April and see what happens. Could still close the whole thing when it finally peaks. April roll to 175 would reduce short deltas a little so not a bad deal.
3. Anything I’m missing on how to handle this? If Janet raises in December we could really see this thing head higher.
After gallbladder removal yesterday! LOL Glad to be here….
Aggressive adjustment on an in and up roll. If this run up holds I’ll book the big profit on this put much sooner.
Rolled Dec 9th 365 put in and up to Nov 18th 395 @ even. This is against an ITM call in same expiration. Hopefully, the put will expire and I can book it (sold for 17.90) and then roll the ITM call out to a new strangle. It’s hard to defend an 85 point move in 4 days but this might work if it holds above 400.
Rolled this week’s 70 strike #CoveredCalls to next week’s 72’s @ .15 debit. A little late on this…probably could’ve gotten a credit earlier.
Closing and re-selling the call side of 46/54 strangles. Still holding the Nov monthly 46 puts…
Bought to Close EWW NOV 18 2016 54.0 Calls @ .02
Sold EWW NOV 25 2016 50.0 Calls @ .65
Bought to Close TLT NOV 11 2016 131.0 Calls @ .06 (sold for .71)
Sold TLT NOV 18 2016 128.0 Calls @ .75
Selling every week against DITM puts…(similar to a covered call at this point)
Bought to Close WYNN NOV 11 2016 92.0 Calls @ .07 (sold for 2.35)
Sold WYNN NOV 18 2016 89.0 Calls @ .90
Selling every week against DITM puts…(similar to a covered call at this point)
Rolled 121 calls out a week @ .30 credit selling against 122 puts.
Bought to Close AAPL NOV 11 2016 112.0 Calls @ .11 (sold for 1.15)
Sold AAPL NOV 18 2016 109.0 Calls @ 1.32
Selling against Dec 2nd 110 puts…
Bought to Close Dec /VX @ 16.85 (sold for 17.32 average)
Biotech pretty happy with a Trump win…LOL
Bought to Close /ES DEC 16 2140 CALL @ 18.50 (sold for 21.50)
Took off part my /ES downside hedge yesterday (short future/short put) leaving me with a short Dec 2140 call sold for 21.50. Just for fun I’m shorting a Dec VIX future against this position. One side has to do ok on a big move either way…or…best case scenario is a volatility collapse with no associated market movement.
Can’t resist…gotta do something for the big event this evening. BTW…tastytrade doing a special this evening at 6pm central as first polls close.
Rolled 355 short call out to next week’s 357.5 @ 1.00 credit. Still short against a Dec 9th 365 put.
Rolled 362.5 short call out to next week’s 365 @ even. Trying to get a little closer to the money. Sold against a longer term short put.
This looked a whole lot better until yesterday evening…
Bought /ES @ 2123.50 (sold for 2161.25)
Bought /ES DEC 16 2120 PUT @ 41.75 (sold for 27.25)
Net gain of 23 points so not bad. I could sit on the put but not real comfortable with a naked put going into tomorrow.
Still short a Dec 2140 call @ 21.50 so looking to get short again up around 2160 if we keep going up…
What the heck did you guys do? That’s a lot of green!
Rolled this week’s 130.5 calls to Nov 11th 131 calls @ .69 credit. Selling against longer term short puts.
Gotta leave shortly so playing it safe. REGN screaming higher so getting out of this week’s short call since next week’s has already been sold.
Bought to Close REGN NOV 4 2016 355.0 Call @ .95 (sold for 10.30)
Doesn’t bother me paying the .95 since this was an aggressive double roll down as REGN was falling.
This pullback has allowed me to get out of a poor trade. Originally sold SVXY #CoveredCalls in Dec and Jan WAY to early. I’ve now been able to close them at even and re-sell much closer in time to really crank up the theta.
Sold SVXY NOV 11 2016 70.0 Calls @ 2.50
#CoveredCalls Rolled this week’s 12 calls out to Dec 9th 12.50’s @ .25 credit
Rolled this week’s 370 put to Dec 9th 365 put @ even. Still rolling while accumulating 17.90 premium so far. This is against shorter term calls.
Sold REGN NOV 11 2016 355.0 Call @ 2.50
This replaces today’s expiring 355 (sold for 10.30)
Had a fill last night. High IV giving nice premium on the call side too. Adding a little more downside protection at a level I wouldn’t mind shorting again. Selling against a short future/short put position.
SOLD /ES DEC 16 2140 CALL @ 21.50
Rolled Nov monthly 265 put to Dec 9th 262.5 put @ even. Continuing to sell weekly calls against…
New position for me. Stock ran up on earnings and now has fallen back into congestion…
Sold UNH DEC 9 2016 130.0/145.0 Strangles @ 2.33
Rolling down a little to take advantage of earnings (tomorrow) premium. Gives a little more downside protection against a 370 put.
Rolled REGN 370 call down (but not out) to 355 call @ 3.30 credit.
Rolled this week’s 125 puts to next week’s 124’s @ .74 credit.
Lowering strike price and bringing in decent premium. Sold against some slightly ITM calls.
This thing is just grinding sideways right in between my inverted strangle. Not making any adjustments here…just rolling the thing straight out another week for nice premium.
Rolled IBM 155/150 inverted strangles to next week’s 155/150 @ 2.42 credit.
Bought to Close EBAY NOV 4 2016 29.0 Calls @ .04 (sold for .91)
Sold EBAY NOV 18 2016 29.0 Calls @ .35
Bought to Close WYNN NOV 4 2016 95.0 Calls @ .26 (sold for 2.80)
Sold WYNN NOV 11 2016 92.0 Calls @ 2.35
Still selling against ITM puts…nice weekly sales to reduce basis.
Bought to Close AMZN NOV 4 2016 795.0 Call @ .28 (sold for 5.30)
Sold AMZN NOV 11 2016 785.0 Call @ 6.40
Selling against a Jan 2019 long position…(BuPS and long call)
Out of my iron flies at even…nice recovery this morning. Fuzzy happy!
Rolled my Nov 2140 covered put out and down to Dec 2120 to make a little more room to the downside. Paid a half point debit for the roll. Not much liquidity this time of night.
Turning into a pretty good hedge with a cost basis of 2190. Toughest thing at this point is deciding when to cover it. Would love to cover the short and then double dip cashing in on the short put when we head back up. 200 ma at 2076 might be a good low risk place to give it a shot. Cover there and re-sell if it doesn’t hold…
No luck yet on 2.5 wide IB @ 2.05…
Options Bistro 