Back in…still mainly a hedge for a long SVXY position so don’t mind rolling them a few times.
Sold UVXY JAN 8 2016 29.5 Puts @ .96
Author Archives: fuzzballl
$DUST straddle
Continuing to book one side and roll the other for a credit until this thing recovers. Not much left in these so rolling at the 45 day mark for Feb.
Rolled DUST Jan 22 puts to Feb 22 @ .80 credit (accumulated premium now up to 5.35)
Still sitting on the Jan 22 calls that were sold for 1.30. Once I’m out of those will be looking to sell 21 or 22 calls for Feb to reset the straddle.
UVXY puts
Staying aggressive hedging my SVXY puts…playing with a little house money after closing a decent size similar position yesterday.
Sold UVXY JAN 8 2016 29.0 Puts @ 1.15
NFLX
Had to thank GG for this one. He was harping on NFLX being weak last Thursday so I had to try to protect my naked puts a little. Worked out OK…
Bought Jan monthly 110/105 put spreads @ .93 on Thursday.
Today…closed them for 2.58 for a gain of 1.65 and bought 105/100 put spreads @ 1.70. This leaves the 105/100 put spreads for a nickel debit. My kind of protection there!
Also Thursday rolled down this weeks short calls to 115 and 112 for nice credit.
So after all that it’s pretty much a wash on the losses on the short puts…so far so good.
UVXY puts
Bought to Close UVXY JAN 8 2016 26.0 Puts @ .20 (sold for 1.20 up to 1.40 on Thursday)
UVXY puts
$UVXY – Putting the hedge back on a strike lower next week. Margin free against Jan monthly 35/50 45/60 55/70 55/75 bear call spreads. Half position so far…Jeff is right…these are pretty easy to roll down especially if VIX stays above 15 or so. Plenty of SVXY will be doing great if these get too far in the money.
Sold UVXY JAN 8 2016 26.0 Puts @ 1.20
Sold UVXY JAN 8 2016 26.0 Puts @ 1.30
Sold UVXY JAN 8 2016 26.0 Puts @ 1.35
Sold UVXY JAN 8 2016 26.0 Puts @ 1.40
GG says:
$DGAZ running again on weekly EIA 10:30 release back in 12.52 now out at 13.05 10 min 4% scalpie
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Now I grew up in a small town in a little school but I still can’t make that math work…4 percent? What am I missing?
SVXY UVXY…trimming the hedges
Taking off a very profitable weekly hedge. Went against the grain a little but paid nicely. Will re-load on any strength.
Bought to Close UVXY DEC 31 2015 27.0 Puts @ .15 (sold for 1.40)
Bought to Close SVXY DEC 31 2015 52.0 Calls @ .15 (sold for 1.40)
NUGT puts anyone?
I’m a little scared to go to the put side but the Feb 15’s are bringing about 75 cents. Awful tempting since they’d be margin free.
Whaddya think?
Talk about KOLD….wow
Just landed in Vail and talk about cold! About 10 below when we touched down. Burning the nat gas out here!!
Not doing much this week…everything looks great and theta doing it’s thing.
Snow
Looks like the snow is picking up here at “The Bistro”. Should I call for de-icing?
/ES #Eminis
Sold a 2020 call earlier this week for 11.50. Could’ve rolled it but instead I’m going to take the short position (if /ES stays above 2020 tomorrow). Now, turned around and sold a Jan 8 2020 put against the short position. Received 13.50 for the put sale added to the 11.50 call sale earlier, total premium is now 25.00. Short position is only slightly underwater but giving me a nice hedge for my long SVXY. A pullback below 2020 will cover the short position and bank 25 points of gains…
If we continue up I’ll continue selling weekly puts to raise my cost basis in the short position.
SVXY calls
Taking these off the table since they’re not technically covered…they’re just a short put offset.
Bought to Close SVXY JAN 15 2016 60.0 Calls @ .70 (sold for 1.35)
UVXY puts
#ShortPuts – It’s worked the last couple weeks…margin free against short calls.
Sold UVXY DEC 31 2015 27.0 Puts @ 1.27
/ES Eminis
#ShortCalls – SOLD DEC 15 (Wk4) 2020 CALL @ 11.50
This would get me short at 2031.50 or I could roll it. Needing a little more downside protection.
SVXY calls
#ShortCalls – It’s worked the last couple weeks…margin free against short puts.
Sold SVXY DEC 24 2015 51.0 Calls @ .95
UVXY puts
#ShortPuts – It’s worked the last couple weeks…margin free against short calls.
Sold UVXY DEC 24 2015 28.0 Puts @ .90
/NG Nat gas futures
Up 8 cents at the open…if that holds we might see KOLD down 20 in the morning.
/VX VIX futures
Bringing this to the top from my reply below…just thinking out loud tonight.
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Funny you should mention VIX futures…I think I’m going to quit shorting UVXY naked calls and concentrate on the futures. I believe a person could short a few contracts each time it spikes above 25 and do pretty good much more safely without the constant UVXY spike worry.
A VIX future trades at a value of 50 dollars per tick with each tick being .05 This makes them worth 1000 dollars per point. Instead of sitting year round with big short UVXY exposure just wait until the 2 or 3 times a year we get a spike in the VIX futures 20-25 range and short a few. Imagine shorting 5 of those in late August and catching about 10 points of the move. Seems a lot safer without the constant black swan risk.
Of course your account would have to be able to withstand the daily mark to market of the futures if you short to early plus margin of about 6000 per contract.
UVXY puts
Just gotta take the gains on this in such a short time since it was a decent size position.
Bought to Close UVXY DEC 24 2015 27.0 Puts @ .43 (sold for .82 this morning)
UVXY puts
Just a starter for now hoping to add more. Seems like decent premium even with UVXY up a little. These are margin free and replacing a bunch of 27’s from this week.
Sold UVXY DEC 24 2015 27.0 Puts @ .82
DUST
GDX just getting killed…could see a 12 handle soon. Taking the other side of NUGT now. Just adding one to a current position. Will add more if GDX bounces around 13.
Sold 1 DUST JAN 15 2016 22.0 Call @ 1.60
Out all afternoon and missed…
Out all afternoon and missed the excitement. Liking what I’m seeing now though. I knew Iceman could work his magic on KOLD for us! Turned into a very good day….
NUGT short calls
Reducing a small amount of my exposure as well. Mainly in the positions that are more delta dependent vs theta type positions.
Bought to Close NUGT JAN 20 2017 60.0 Call @ 6.50 (sold for 24.90)
Bought to Close NUGT JAN 20 2017 75.0 Call @ 5.30 (sold for 7.50)
OMM, KOLD and the GG
After reading the latest missive from GG I just couldn’t help myself. I’m sure he’s a good trader but bragging about a winner and making fun of (his perception) of another person’s possible misfortune is pretty sad. Here’s his post followed by my response…
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$KOLD finally sold my shares on this parabolic move at 218 and change this inverse levered ETF ( see earlier post on CC attempt sale) ; now that’s extended ; check out chart BTW $BOIL hit yet another ATL as is down well over 90% in year ; funny how so many traders here argued very aggressively that naked put sales when ETF was 100 -125 would make money in the end ; now that ETF is down 90% since they’re no where to be found ; now I know these trades were likely all closed out for huge loses in many cases yet not single post I saw on the related losses ; bottom line = selling naked options on commodities experiencing multi-year downtrends can end a trader up in the poor house no matter how much contra option selling a trader attempts ; not to mention outsized tie-up of capital which is losing money on these ETFS many of which aren’t marginable ; don’t get me started selling naked options on illiquid securities like $KOLD ; traders should just avoid these types of trades like plague ; this is the 2nd year in year many of these same traders made this costly mistake on thesis don’t worry winter is coming Nat gas will go up when it gets cold ; arrogant to assume IMO that wasn’t already priced in market IMO. BTW Nat gas hit seasonal low last winter ( Jan/Feb)when Northeast was experiencing record and sustained cold. El NINO pattern warmer than expected long term continues to crush this commodity as it makes daily multi-year lows with IMO zero signs /technicals in charts that bottom is near ; look at charts of $CHK and $SWN the two Natty gas big boyz YUCK!!!!!!!
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@GreenGhost $KOLD $BOIL – I’m still here…LOL Not in the poor house yet. You’re right…this KOLD is a thorn in my side but talk about a learning experience in damage control! Luckily stayed very very small. By the way…great trade going long on it!
How’s this sound? Not saying it’s great but desperate times call for desperate measures. Looking back the original trade was a BeCS that moved bad against me so made the mistake of closing the long protection and taking the big profit on it figuring I could work the short side with puts and rolls.
As it continued moving against me I sold ITM puts and continued rolling them keeping them slightly ITM all the way up while rolling the short ITM calls up and out to Jan. Eventually the width of the inverted strangle was equal to the total premium I had received (61 dollars total). At that point I started buying ATM calls totaling 100 deltas since the ITM calls were now at 100 delta. I eventually switched to stock since it’s a little easier to get in and out of.
So at this point this thing could go to the moon and my position will remain the same…long stock covering calls with 61 bucks premium in my pocket. I’ve got a little cushion on the stock to the upside as well so I can hang onto it until it starts dropping and still unload it for additional gains.
Downside is the buying power it’s tying up which isn’t the end of the world. Even if I have to hold this thing for 2 years while rolling the short calls up every month I’m still looking at 25 percent annualized on margin or even better if this thing pulls back sooner. Can probably still juice the returns even more by selling really safe puts each month…not to mention what I’ve added to the bottom line shorting BOIL calls all the way down…(I don’t ever short BOIL puts!)
So there ya go…things aren’t always as they seem. I know @Iceman is still in it and @JeffCP is in a similar position as me…even though he resigned his OMM membership we’ve been able to stay in touch on a few trades.
I know, I know, just going long would’ve been smarter and better. Guess I’m an idiot at times!…LOL Trying to make a little lemonade out of this lemon.
KOLD inverted strangle update
Rolled Dec 175 puts up to Dec 200 for a credit. Also short the 120 calls in Jan for an inverted strangle. Assuming the 200 puts expire I’ll be left with short DITM Jan 120 calls with the whole position bringing in a total credit of 52 dollars giving me a breakeven on the Jan 120 calls of 172.
At that point I’ll have to decide where to sell the new puts…basically the more bullish I am on KOLD (bearish on nat gas) the higher the strike I’ll sell the puts at with hopefully being no further inverted than the toal premium received. Ideally early next week nat gas rallies and KOLD tanks and I never even have to sell them…LOL
/ES #Eminis
$Eminis – Really strange…had a standing order to cover a short at 1993.25. Got hit on that sudden spike down. Turned around 4 minutes later and sold it again for 2009.75. Trying to cover again down around 1995. Some sort of strange news I guess really moving this thing!
Eminis
#Eminis – Bought to close DEC 15 (Wk2) 2050 CALL @1.40 (sold for 10.00 yesterday)
and on a little bounce this morning:
SOLD JAN 16 2050 CALL @ 30.75
This would get me short at 2080.75 Still short a couple contracts as a hedge and rolled those from Dec to Mar this morning. Today is the big quarterly roll day for the Eminis…Was short 3 contracts but covered one at 2058 breakeven earlier this week…grrr!
SVXY call scalp
Bought to Close SVXY DEC 11 2015 54.0 Calls @ .05
Sold these for a dollar yesterday with house money after closing short 57’s and 60’s.
BIB…again
3rd time this week…mostly out of boredom but starting to add up. Trading the bounce off the 50 and rejection off the 21ema as it consolidates.
Bought double size positions yesterday at 66.60 and 65.60. Sold it all at 67.60 today. Adds up nicely in the #401k.
Main position in regular account is short Dec 75 puts that I’ve been rolling out but not down for a couple months. Doubling down bullish by rolling short Feb 50 puts up to Feb 70 for 6.40 credit. (yesterday). Breakeven on Dec position is 69.15 and 61.50 on the Feb position. Leaving Jan open for probable roll of the 75’s again. Gradually adding nice premium each month while the politicians bad mouth those evil drug companies…LOL
SVXY naked calls
Bought to Close SVXY DEC 18 2015 60.0 Calls @ .60 (sold for 1.75)
SVXY naked calls
Bought to close SVXY DEC 11 2015 58.0 Calls @ .20 (sold for 1.25)
BIB quickie #401k
#401k – Sold all the BIB I bought yesterday on the run up to the 21ema. Out at 68.25….just missed a reload at 67.25 but orders in all the way back down to the 50ma. Two decent scalps in last 4 trading days…LOL Buy Thur sell Fri buy Mon sell Tue. Loving those alternating red and green big bars!
SVXY put #IRA
#IRA – Just one for now…
Sold 1 SVXY JAN 15 2016 55.0 Put @ 4.80
/ES #Eminis
Continuing to rally after hours…volatility tanking 🙂
UVXY BeCS
Sold UVXY MAR 18 2016 55/75 Bear call spreads @ 1.25
BIB #401k
#401k – Bought this Thursday and sold it Friday last week similar to the XIV trade. Starting a new position here at the 50MA. Starting small leaving room to add if the 50ma doesn’t hold…that could possibly bring the August lows back into play…
DUST calls
#ShortCalls – Bought to close DUST DEC 18 2015 22.0 Calls @ .25 (sold for 1.65)
Still short 22 puts so looking to lay the calls out there again on any follow through. This was part of a short rolled straddle worth 5.45 total.
/ES #Eminis
Missed the last 2 dips…Looking to cover a couple shorts once it regains the 20MA on 2 min chart. Trying to bounce a little here.
XIV #401k
Doing the same thing as last Thurs/Fri. Laddering in as it sells off…buying a few shares in #401k every 50 cent drop. Sold them on Friday so starting over here…
BIB #401k
Same strateegery as XIV. Bought it all the way down yesterday to the 50MA. Sold it today at breakeven price of my first purchase. Another overnight scalp for the #401k. Gotta love the volatility!
UVXY Call spreads
Closing a sizable position in my #IRA just in case a better opportunity comes along in next couple weeks. I held this thing all through the August turmoil even when it went completely ITM. After watching this and seeing how stress free it was I think all my UVXY call trades from now on will be spreads. I think I can put them on a little less often for shorter duration and get out of them quicker and with less risk than being exposed to naked positions for months at a time. I’ll still go naked once in awhile but pick my positions carefully (like a 200 strike a year out for 50 bucks…LOL)
This has been a great strategy in my IRA with no losers and no stress. I think I’ll carry this over to my regular account also…
Bought to Close UVXY DEC 18 2015 70/90 Bear call spreads @ .06 (sold for 1.10)
NUGT
#ShortCalls – Added one today so far…
Sold NUGT MAR 18 2016 65.0 Call @ 2.10
XIV #401K
Bought it all the way down yesterday as low as 27.10 and sold it all today at the breakeven point of my first purchase yesterday (29.50). Nice little quick overnight scalp for the #401k. Still holding a core position to hopefully sell up around 32.
UVXY call spreads
#IRA – Sold UVXY DEC 18 2015 45/60 Bear call spreads @ .84
SVXY Naked calls
#ShortCalls – Bought to Close DEC 4 2015 59.0 Calls @ .30 (sold for 1.70)
/ES #Eminis
#Eminis – Nice day to have a couple of these short to stabilize the account. I keep ’em double covered with short puts for cost basis improvement. Currently covered puts at 2050, 2000, and 1975 with double coverage at the 1750-1850 area further out. I’d probably go long there anyway…
XIV #401k
Took over trading of my #401k Sept 1st once the rules changed at American. Now allowed to self manage 95 percent of it with no limit on number of trades. I’ve been using stock only with no options strictly with XIV and BIB playing the swings. Working so far with total account up 14 percent while never using more than one third at any given time.
Yesterday top ticked XIV when I dumped a tranche at 31.50 (smiley face).
Re-building the position now with orders in to buy a small amount every 50 cent drop all the way to the August low of 20. Love scaling in like this since at some point it will turn more than likely before it gets to 20. This will in total be a one third position. If we keep dropping from there I’ll start the second third and trade it. If we eventually get down to the 2011 low of 4 bucks I’ll have a nice cost basis…
TZA call spread
#ContangoETFs – Adding to some winners…was almost completely out of this ticker.
Sold TZA JAN 15 2016 45/55 Bear call spreads @ .92
SVXY and UVXY in the #IRA
Couple small trades in the IRA…
Sold UVXY JAN 15 2016 45/60 Bear call spreads @ .78 (half position for now)
Sold SVXY DEC 11 2015 55.0 Puts @ 1.35
SVXY…closing one of my hedges
Bought to Close SVXY DEC 18 2015 65.0 Calls @ 1.10 (sold for 1.55)
Scaling back a little just in case we keep running…
ULTA AMBA Earnings
#EarningsScalp – Haven’t decided yet but both have earnings later this week. I’ll be watching for now and see what’s available later this week.
$BOIL – Taking one for the (long nat gas) team
#ContangoETFs – Nothing would make me happier than a nat gas rally so here’s something for Mr. Market to shoot at…
Sold BOIL DEC 18 2015 20/25 Bear call spreads @ .80
NUGT – It just keeps working (going down)
Trying to keep a fairly full position on any little bounce. Replacing a few higher strikes that should be closing soon. Another of our #ContangoETFs These are filling above the mid so I probably could’ve done better.
Sold NUGT MAR 18 2016 45.0 Call @ 2.70
Sold NUGT JUN 17 2016 60.0 Call @ 3.30
Sold NUGT JUN 17 2016 65.0 Call @ 2.40
AGQ ZSL – C’mon silver…you can do it!!
Adding to a hedge against my short ZSL position. Short ZSL is a long silver position so hedging with a short silver position. Great thing is they are both #ContangoETFs
Sold AGQ DEC 18 2015 30.0 Calls @ .75
NFLX puts
#ShortPuts – Adding to a hedge against some short calls…
Sold NFLX DEC 4 2015 123.0 Puts @ 1.65
TZA short call spreads
#ContangoETFs – Bought to Close TZA DEC 11 2015 45/50 Bear call spreads @ .06 (sold for .90)
Just a little scalp from a couple weeks ago. Still short Jan 50/60…
NUGT :)
If I ever have another dog I will name it Nugget! LOL…
Oops…one more (AGQ short calls)
Still hedging my short ZSL with short AGQ…rolled Dec 33 calls down to 30 and added more. Daring silver to rally here.
$SVXY…boring but a moneymaker
Still continuing aggressive shorting of puts and calls near the money on a weekly basis. Rolled 60 puts to next week’s 58 for .10 credit. 59 calls expiring today so sold next week 59’s for 1.70. As long as it grinds sideways these weeklies are pretty rich. Still overall net long SVXY so would love to see calls get in trouble. In the IRA I think I’ll let stock get called today at 57 with a 53 basis.
Great weekend everyone!
BOIL Bear call spreads (KOLD)
Closed Dec 30/40 for a dime. Eases the KOLD pain a little.
On the KOLD subject I also rolled my short puts from 140 to 155 against 105 calls. Strangle is now inverted 50 points while bringing in 48.58 so right now if KOLD closes Dec between 105 and 155 I’ll be at a 1.42 loss (if I let it expire). On the bright side with the huge amount of premium brought in I’ll have plenty of firepower to adjust on the next roll. Right now goal is to get out anywhere near even since it’s such a margin hog at TDA. Staying small is the key to being able to stay in these types of (experimental) trades.
TZA Bear call spreads
Closed a few of these for pennies. Still short Dec 11 weeklies and Jan monthlies.
NFLX puts
Been out working last few days but did mange a few odds and ends…
NFLX 120 puts expired last week so replaced them with 117 puts earlier this week. Now rolled those up to 123 puts for an additional 1.45 credit. Total credit now up to 2.75 expiring next week. Still aggressively selling the puts against ITM calls I’m short. Also short Jan 2017 put Leaps.
KBIO…crazy
New CEO seems pretty shady. Wonder how much he made on this deal. Incredible…
/ES Emini adjustment
#eminis Sold the call side of my Jan strangle a little too soon. Currently holding Jan monthly 1900/2100 strangle for a total premium of 33.25. Rolled the 1900 put up to 2000 for an additional 12.50 credit.
Position is now Jan monthly 2000/2100 strangle @ 45.75 so breakeven of 2145.75 and 1954.25. Also holding a couple short eminis as overall portfolio protection so if we implode the put will be covered for additional profit. Also short a strangle in Dec and short puts further out and well below the August lows Waiting a little to add calls to those. I’d be happy to go long down in the 1650-1800 range if we get there.
NUGT calls
Adding a few at the higher levels…will add more on any strength. Also short at much higher strikes and better premium.
Sold NUGT JAN 15 2016 35.0 Call @ 2.50
Sold NUGT MAR 18 2016 50.0 Call @ 2.80
Sold NUGT MAR 18 2016 55.0 Call @ 2.40
Sold NUGT JUN 17 2016 70.0 Call @ 3.30
$NFLX -closed puts
Playing it safe here since I’ll be out. Booking these now…they were a triple roll up from 105 to 115 then 120 chasing the stock up this week. Really nice gain but…still short calls against Leap puts. I’ll take these kind of trades every week until Jan 2017!
Bought to Close NFLX NOV 20 2015 120.0 Puts @ .10 (sold for 5.89 total)
AMBA – No position yet…
AMBA – 12 day squeeze firing long today. I guess GPRO isn’t that big of a customer after all! I’ve been watching this one for awhile. Love those little red TOS dots.
SVXY housekeeping
I”m not going to be around for the close so unfortunately have to close some stuff prematurely. Using this little dip to take care of those.
Bought to Close SVXY NOV 20 2015 55.0 Puts @ .15 (sold for 1.85)
Bought to Close SVXY NOV 20 2015 57.0 Calls @ .45 (sold for 1.05)
Still have a few 57 calls that are covered. Probably just let the market gods decide how those will go. Either way works for me…LOL
$KOLD…second thoughts
Sure looks like nat gas is breaking down again…futures falling below the 20ma today. My KOLD position is extremely high margin so I’m trying a trick that the tastytrade boys use sometimes involving inverted strangles. Hoping to get out of this position sooner but still with a nice profit.
Current position was Dec 105 calls/100 puts strangles worth 26.75 total premium.
I rolled the 100 puts up to 130 for another 10.25 credit. I’ve now got 105 calls/130 puts inverted strangles that have brought in 38 dollars in total premium. The goal is to have the price between the strikes at expiration just like a normal strangle. Both sides will still offset each other but since my total premium brought in is greater than the width of the strangle I’ll still book that 13 dollar difference per strangle. If it continues on up I’ll have plenty of premium to use for further adjustments…
$KOLD – I’m still wearing shorts in St. Louis!
Will nat gas ever recover? Not sure but I’ll keep selling it and enjoying my heating bills. 100 puts expiring this week so selling again in Dec. These are against 105 calls that have accumulated 21.00 in premium. Would really like these puts to get in trouble…
Sold KOLD DEC 18 2015 100.0 Puts @ 3.52
$DUST roll and re-load
I’ve got decent premium built up in the put side of this so staying a little more aggressive here with 20 and 23 short calls expiring this week.
Rolled Nov 23 strike puts to Dec 22’s @ .50 credit (3.86 total now)
Sold DUST DEC 18 2015 22.0 Calls @ 1.65
Position is now short 22 straddles in Dec worth 5.51. Strange trade but turning out pretty nice after getting caught in that big down move in early October.
$NUGT – Trash yesterday, Treasure today
Closed a bunch yesterday and one more today…and re-loading. It really is the gift that keeps on giving. LOL
Bought to Close NUGT JAN 15 2016 60.0 Calls @ .85 (sold for 7.45)
Sold NUGT JAN 15 2016 45.0 Calls @ 1.85
Sold NUGT JAN 15 2016 50.0 Calls @ 1.35
$NUGT junk in my trunk…
Closing some scraps hoping this bounce follows through a little to sell ’em again! The gift that keeps on giving…still short a bunch out through Jan 2017…
Bought to Close NUGT DEC 11 2015 40.0 Calls @ .45 (sold for 1.10)
Bought to Close NUGT DEC 18 2015 45.0 Call @ .50 (sold for 3.73)
Bought to Close NUGT DEC 18 2015 50.0 Call @ .30 (sold for 2.60)
Bought to Close NUGT DEC 18 2015 55.0 Call @ .20 (sold for 2.50)
$NFLX rolling
Rolled Nov 107, 110, 112, short calls out to Dec 110, 114.29, 117.14, for even. Also, rolled this week’s 115 puts up to 120 for another 1.47 credit giving these weekly puts a nice total credit of 7.04. Don’t mind dealing with these short term issues since it’s still an overall bullish position. Jan 2017 94.29 short puts are looking great!
Options Bistro 