… I mean straddle. Short the 100 straddle today, breakevens at 97.70 and 102.30. We were spot on 100 yesterday, but it didn’t get cheap enough for me to close. It looks like this may hit breakeven, but a move closer to 100 would be nice…… #Pinning does not work so well in these volatile markets.
Author Archives: Jeff
#VXXgame
STO $UVXY Jan 29th 80 calls for 2.30
STC $VIX Jan 19th 19 call for 7.30. Bought for 2.87 avg price in December. Still holding more.
(put spread)
The parentheses are my attempt to be quiet about selling a put spread, so maybe the market won’t notice and let this one slip by. But taking an advantage of the extreme move.
#SPXcampaign STO $SPX Feb 12th 1650/1625 put spreads for 1.30.
Monday Holiday
Don’t forget U.S. markets are closed Monday, but international markets are OPEN. This could mean anything’s possible for Tuesday’s open. So although it is a shorter week for options expiration, be careful with any positions going into the weekend.
Good morning…
Although I thought we might remain calmer until next week, our trip down to October 2014 lows (1820) is resuming now. I don’t think we can look for any meaningful bounce until at least that level.
UVXY puts
BTC $UVXY Jan 22nd 22 puts and 22/20 put spreads for .02. Sold for 1.00 and .55 respectively on 12/31.
STO UVXY Feb 5th 27 puts for 1.18
STO UVXY Jan 22nd 30 puts for .52
SPX in rally, but VIX not plummeting and UVXY sideways
and another…
#SPXcampaign STO $SPX Jan 22nd 1995/2020 call spreads for 1.25. This is the third I’ve sold today. Cutting it a bit close, especially if rally continues into expiration tomorrow. But I believe call spreads are still the safest bet.
More calls
#SPXcampaign STO $SPX Feb 5th 2025/2050 call spreads for 1.45
Reversal
#SPXcampaign Put spread stopped at the bottom again! Always seems to work that way, aye? I mentioned this the other day, but 22 of the 25 biggest rally (up) days in the Dow have been during corrections, with Dow beneath its 200 dma. Huge rallies now are a good chance to short the market. I’m looking for the high today to sell more call spreads and UVXY puts.
ETF Webinar – January 20, 2016
A new webinar next week for what I call #ContangoETFs; the bull and bear 2x and 3x ETFs and ETNs that always head toward zero; how they work, and how to keep an edge in trading them. It will be Wednesday, January 20 at 5pm ET, 2pm PT. Limited spaces available; reply below this post if you’d like to attend.
some trades…
STO $UVXY Jan 15th 55 calls for .60
STO $TZA April 85 call for 5.05, added to the one I sold for 4.05 yesterday
BTC $BOIL Jan 15th 25 calls for .05, for no other reason than I forgot I had a GTC order in. Sold for 1.10 in November
Puts stopped
#SPXcampaign Hand slapped again… tried selling my first put spread in a week yesterday, but did it too early and already stopped out. Need to stick with call spreads.
BTC $SPX 1810/1785 put spreads for 2.90. Sold yesterday for 1.25.
Call spreads
#SPXcampaign STO $SPX Jan 29th 2000/2025 call spreads for 1.35.
Managing options positions through max Payne
I made a presentation last night to a local Options Trading group about #ContangoETFs, and I included the recent $KOLD trade through the swing from 90 to 220, where many of us held ITM naked calls on the whole ride up. I shared @fuzzballl‘s tactics of selling ITM puts, and of selling the long leg of a way-ITM spread while it was riding high. One member said you need to have “ice in your veins” to handle these types of trades without panic.
It is true that the way many of us trade UVXY and other naked options is not for everyone. I stressed last night and I stress again now, you must know the products you’re trading and you MUST control position size so your account can handle worst case scenarios.
For new members or followers to Bistro, be sure to ask any of the traders here any questions about their positions. This is a good group, always willing to offer advice. I learned much of what I do from many of these people, including @optioniceman who first taught me the tricks to selling naked premium.
(And if you want to see some of the KOLD trading, use search box in the right column and enter the term “KOLD”)
More UVXY
#VXXGame STO $UVXY Jan 2018 85 call for 24.00
STO $UVXY March 18th 165 call for 3.00
Also, STC another $TLT long 123 call (Jan 15th) for 2.50.
SPX calls closed
#SPXcampaign BTC $SPX Jan 29th 2060/2085 call spreads for .20. Sold last Friday for 1.50.
This looks like a serious drop.
TLT long calls, VLO short stock
#LongCalls Scaling out of $TLT Jan 15th 123 calls I bought for 1.42 avg back in Dec. Sold half the position today for 1.45 and 1.75. Also holding Feb 19th 123 calls which I will hold since I have more time.
#ShortStock Bought to cover a portion of my short $VLO stock position at 64.50, assigned at 65, cost basis currently 68.00. I have several short puts at 67.00, now one of them naked, but I trust we’ll be back up there soon.
TZA rolling
#ContangoETFs #Rolling one position and opening another one. The April positions started as Jan 50’s, then rolled to April 60’s, now rolled to July 65’s. I can do this all year (at least until I run out of expiries).
BTC $TZA April 60 calls for 9.00 (sold for 5.85 last Thursday)
STO $TZA July 65 calls for 10.40
STO $TZA April 85 call for 4.05 (order in to sell another at 5.05)
SPX long spread closed
#SPXcampaign STC $SPX Jan 22nd 1800/1775 put spreads for 1.20. Bought last Friday for 1.10.
SPX put spread
#SPXcampaign STO $SPX Jan 22nd 1810/1785 put spreads for 1.25
This spread is higher than the 1800/1775 I bought last week for 1.10. I will be closing that purchased spread today, as the window for profit is closing… I believe I can get out for at least breakeven today… I sold one of them for a double on Monday; now I can see that was my best chance to close all!
What Ramie said
#VXXGame
STO $UVXY Jan 15th 50 calls for .55
STO $UVXY Feb 26th 85 calls for 3.00
Another 1% down move in SPX but $VIX is barely budging.
Threading the needle
#ContangoETFs STO $KOLD Jan 15th 130 puts for 1.40.
KOLD between 130 and 150 is my sweet spot for January expiration… and then plummet below 100 for February expiry. Is that too much to ask?
Indexes rolling over, TLT spiking…
Indexes rolling over, TLT spiking up
SPX call spread
#SPXcampaign STO $SPX Feb 12th 2070/2095 call spreads for 1.20.
More profit-taking
#SPXcampaign BTC $SPX Feb 5th 20175/2100 call spreads for .40. Sold for 1.40 last Friday.
More ETF action
#ContangoETFs
STO $DUST March 24 call for 1.75
STO $KOLD Jan 15th 159 call for 2.35
STO $KOLD May 280 call for 6.20
AAPL straddle
#Pinning #ShortStraddle
STO AAPL Jan 15th 100 straddle for 2.34.
Based on gigantic Open Interest on the $AAPL 100 calls and puts, this is a pinning play. Pinning tends to work best on monthly expirations. This has a profit zone between 97.60 and 102.40. You can also reduce your risk and make this an #IronButterfly by buying 102 call and 98 put, which should give you 1.40 credit with .60 max risk.
Paring upside risk
#SPXcampaign BTC $SPX Jan 29th 2060/2085 call spreads for .50. Sold for 1.50 on Friday. This was a double-sized position so I closed half at 66% profit. Leaving the rest for now.
Gold plunge
#ContnagoETFs BTC $NUGT March 70 call for .35. Sold for 1.85 on Dec 4th
STO $DUST Jan 29th 20 calls for .80
Good morning…
Futures soaring as earnings season begins… Monday saw a new a new high in the VIX, briefly, before closing lower. Have we seen the peak in volatility, or is more to come? I’m expecting more, with SPX below 1900; but now I’m more cautious. I will be still selling call spreads at higher levels, and watching my lower ones in case rolls are necessary. Some of the biggest rallies occur during corrections. Something like 22 of the 25 biggest UP days in the Dow have occurred during downtrends, when the Dow was under the 200 dma (including just this past August 26th, which was the third highest increase in history). It’s important to keep this in mind on these big rally days during a correction.
SPX call spread added
#SPXcampaign Sold to Open $SPX Feb 12th 2060/2085 call spreads for 1.25.
UVXY same-week puts
#VXXGame STO $UVXY Jan 15th 35 puts for 1.00
STO UVXY Jan 15th 35/33 put spreads for .45 (smaller account)
UVXY new strikes
#VXXGame Some higher strikes added, up to 70 in Feb weeklys and 74 in the Feb monthly.
STO $UVXY Feb 19th 74 call for 6.75
STO $UVXY Jan 22nd 80 call for 2.00 (adding)
SPX calls closed
Missed a fill on this morning’s pop, so disappointingly did not add a new spread. However, these trades…
#SPXcampaign
BTC $SPX Jan 22nd 2050/2075 call spreads for .20. Sold for 1.45 on Friday.
STC $SPX Jan 22nd 1800/1775 put spread for 2.20. Bought for 1.10 on Friday. This is only one of the spreads; letting the rest ride and scale out as SPX drops further.
KOLD pop
#ContangoETFs Selling whatever I can for options that expire Friday…
STO $KOLD Jan 15th 155 calls for 1.50
kick up DUST
#ContangoETFs STO $DUST June 25 call for 2.15
Pre-market fill
#SPXcampaign In pre-market, BTC $SPX Feb 5th 2130/2155 call spreads for .20. Sold for 1.25 last Tuesday.
Options Expiration 1/8/16
Expiring with max profit…
$SPX 1900/1875 put spreads (sold at close yesterday for 1.20)
$SPX 2030/2055 call spreads
$SPX 2060/2085 call spreads
$SPX 2090/2115 call spreads
$SPX 2100/2125 call spreads
$SPX 2175/2200 call spreads
$UVXY 22 puts
$UVXY 22/20 put spreads
$VLO 74 call
$VLO 67 (covered) put
Have a great weekend, everyone!
UVXY calls / VIX call
#VXXGame Added these at the close:
STO $UVXY Jan 22 80 calls for 1.50 (highest strike)
STO $UVXY Jan 15 100 calls for .30 (expire next week)
and…
STC $VIX Jan 19th 19 call for 6.20. Bought for 2.87 average in late December. Still holding 4 more into next week.
more KOLD cut
#ContangoETFs Two-day rally in Nat Gas and $BOIL is likely to see some relaxing on Monday. Hoping $KOLD waits for another week before getting below 120, but it’s definitely headed there.
STO KOLD Jan 15th 114 put for 2.25
STO KOLD Jan 15th 110 puts for 1.30
One last call spread
#SPXcampaign STO $SPX Feb 6th 2075/2100 call spreads for 1.40. That should be enough for today.
Filled at 1.10 for the…
Filled at 1.10 for the long Put Debit Spread below. #SPXcampaign
BUY a spread
#SPXcampaign Yes, that’s right. I am trying to buy the $SPX Jan 22 1800/1775 put spread. I missed my fill as this drop started happening, so I will try on the next bounce. As I believe 1900 and lower is in the cards for next week, I am adding the PURCHASE of spreads into the strategy on occasions where direction seems apparent, and the cost of purchasing is more than covered by selling call spreads. The intention here is not to bring the spread ITM, as I don’t expect 1800 by the 22nd. But this trade will make between 100% and 200% if we get down to 1900 next week. I will update if I get filled.
Call spread closed
#SPXcampaign I had this GTC order in all week, but this one did not close at yesterday’s lows, and instead closed at today’s open. I think it goes to show that when volatility is high, call spreads have difficulty closing due to fluctuating prices, even as the index is sinking far away from the strikes.
BTC $SPX Jan 29th 2160/2185 call spreads for .10. Sold for 1.35 on 12/29.
New followers…
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Another call spread
#SPXcampaign STO $SPX Jan 29th 2060/2085 call spreads for 1.50.
SPX call spreads
#SPXcampaign Started with this one, trying for more…
STO $SPX Jan 22 2050/2075 call spreads for 1.45.
OptionsBistro available on mobile phones or tablets…
Just add the WordPress app to your mobile device! #Welcome
Good morning…
Good jobs report… time to short the rally. I will be selling call spreads today.
SPX final put spread closed
If SPX ends tomorrow at this level, it will cost me $25.00 to close this spread. So I’m instead closing it now while the long puts still have plenty of value. I will look to do an ITM spread in the near future to replace this. It is a small position so not a huge headache.
BTC $SPX Jan 8th 1970/1945 put spreads for 14.60. Sold for 1.25 last Thursday.
SVXY new low
#VXXGame SVXY just tagged its lowest level since July 2013… a true laggard in the last 15 months, even though it managed to tag an all-time high in June 2015.
Soundtrack for the day…
This song was used in the ending credits for The Big Short (which you should all see) and I think it’s appropriate for today…
Out and Up
#ContangoETFs #Rolling
Man how I love these ETFs; able to roll 10 points higher and still take in a huge credit. $TZA hasn’t been to 60 since the Oct 2014 correction.
BTC TZA Jan 15th 50 calls for 4.65. Sold for 1.40 on Dec 7th.
STO TZA April 15th 60 calls for 5.85.
UVXY soars
#VXXGame STO $UVXY Feb 66 call for 4.00 (a few minutes ago, now it’s 4.75)
STO UVXY Jan 15th 125 call for .15… expire next week. This strike is pretty ridiculous, which is why I only got filled on 1 contract. I’ll see how many I can get.
VIX Indicator firing again
We just passed 25% above Tuesday’s close, which is another Downside signal. Perhaps we’ll get the panic spike today, but I would at least think we should see VIX above the Dec 14th high, which was 26.81, when the low on SPX was 1993… VIX should be higher already. Next VIX signal is at 25.60, which is 100% above the most recent low (Oct 28).
SPX puts closed (again)
#SPXcampaign BTC $SPX Jan 8th 1940/1915 put spreads for 4.00. Sold for 1.50 on Tuesday. Can’t risk another overnight flush on the S&P, so getting out now. This leaves only one small-sized spread at 1970/1945, currently partly ITM. I will let this one sit and deal with tomorrow, since it is small and easy to shoulder if necessary. Plenty of call spreads expiring tomorrow and in future weeks. Will sell more on any rally and possibly try put spreads on extreme lows. VIX is higher today, but not spiking too high so I still believe 1900 is coming soon.
KOLD closing, VLO opening
#ContangoETFs BTC $KOLD Feb 19th 300 call for .90. Sold for 16.00 on Dec 18th. I don’t think this is at risk of being breached, but closing calls does release margin pressure. I am happy with over 90% of max.
STO $VLO Jan 22nd 74 call for 1.00, after selling a put on this morning’s dip. #Earnings
KOLD low
Nat Gas resuming its rally, and $KOLD hits its lowest point since November 19th.
STO $KOLD Jan 15th 119 put for 1.80
STO $BOIL March 18th 24 call for 1.30
#ContangoETFs
Covered put
STO $VLO Jan 29th 67 put for 1.50. I continue to sell puts and calls against this short stock position… assigned at 65.00 after an #Earnings play, my cost basis is now just below 68.00. It is a bullish chart, but the stock is having trouble rising due to oil and market volatility.
China suspends circuit breaker rule
Looks like China is throwing in the towel on their new rule. Makes sense, since they cannot open every day, have a 7% sell-off, and then shut down. This could mean less volatility for Futures tonight, or it could mean an even bigger China sell-off and global panic. And we have job numbers. What a week!
http://www.bloomberg.com/news/articles/2016-01-07/china-suspends-stock-circuit-breaker-rule-csrc-says-on-weibo
KOLD puts
#ContangoETFs STO $KOLD Jan 15th 120 puts for 1.30. Margin-free against numerous short calls and expiring in 6 trading days.
UVXY calls
#VXXGame Sold near the open:
STO $UVXY March 165 calls for 2.60
STO $UVXY June 80 call for 9.00
Highest strikes in both expiries.
Good morning…
Well, not like we didn’t expect it. Don’t panic like the guy in the cartoon… protect your capital, take opportunities when you can. I’m looking for a big spike in the VIX to consider any neutral or bullish trades; even with Wednesday’s sell-off, VIX was relatively quiet. It has not yet signaled panic, but it has given plenty of downside warning. Once the panic comes, volatility will be driven to higher levels and VXX products will be primed for selling. SPX spreads will be possible in 1600’s or lower.
New calls opened
#SPXcampaign STO $SPX Jan 8th 2030/2055 call spreads for 1.30. Adding this hedge against a couple of put spreads, 1970/1945 and 1940/1915. Hoping the SPX waits until next week to take its big dive.
SPX calls closed
#SPXcampaign BTC $SPX Jan 22nd 2130/2155 call spreads for .15. Sold for 1.30 on Dec 21st.
ETF calls
#ContangoETFs
STO $NUGT Jan 29th 35 calls for 1.15
STO $KOLD Feb 320 calls for 1.15
STO $KOLD Feb 220 call for 4.60
Thanks @optioniceman for the ideas.
UVXY calls closed
#VXXGame BTC $UVXY Jan 15th 150 calls for .05. Sold for .85 on Dec 18th.
SPX put spread roll
#SPXcampaign STO $SPX Jan 8th 1940/1915 put spreads for 1.50. Paired with call spreads sold earlier, all expiring this Friday.
SPX call spread
#SPXcampaign STO $SPX Feb 6th 2130/2155call spreads for 1.25.
SPX spread rolls
Whipsawing continues … sold $SPX Jan 8th 2060/2085 call spreads for 1.45. Was poised to sell 1940/1915 put spreads but was not filled before the index reversed upwards. Will look to sell put side on next down move.
SPX puts stopped
#SPXcampaign BTC $SPX Jan 8th 2000/1975 put spreads for 7.25. Sold last week for 1.20. After another VIX Indicator warning yesterday, I will now only sell put spreads at extreme lows, like yesterday morning, where I was able to turn around a same-week spread in the same day. I will also be more aggressive with call spreads. Until we get a significant flush or correction with a high spiking VIX, I believe we will be in a continued down trend… no more buy the dips, but instead sell the rallies. I will stick with this until the market and VIX tell me something new.
SPX 5 hour spread
#SPXcampaign At 7 minutes after the close, BTC $SPX Jan 8th 1900/1875 put spreads for .30. Sold this morning for 1.30. Maybe can do it again if we get another morning of weakness.
VLO puts
STO $VLO Jan 15th 67 put for 1.00
STO $VLO Jan 22nd 67 put for 1.30.
These puts are covered against a short stock position from an earnings play. Cost basis now around 68.00. #Earnings
SPX same week put spread – 90 points OTM
#SPXcampaign STO $SPX Jan 8th 1900/1875 put spreads for 1.30. These expire Friday.
TZA calls
#ContangoETFs STO $TZA Jan 22nd 50 calls for 2.50. Looking at the monthly chart on this, I’m not concerned that this position will remain a problem, even if it requires some #Rolling in the short term.
