Preparations for the Elections
more of a general question but how are you preparing for the jump of volatility that inevitably will happen during the first week(s) of November.
- Do you retreat to all cash in your trading accounts?
- if not, do you hedge it and how?
I have started to get some long calls on VXX, far OTM with expiration in November and/or December, added a Call calendar in VXX with October / November expiration. Just not sure what else could be done
I would have expected more of a move here, could that indicate the 500 drop in /NQ isn’t that relevant? It is to me though.
#Shortputs trying to mitigate my bad earnings trade when I sold 40 puts by first rolling them out to September and at the same time selling some calls for a straddle in the struggle. I flatly overlooked my loss limit per trade, terrible.
Jeff can you please post the earnings evaluation? Thanks
i had an order in for 2$ on a Bull Call Spread 40/45 expiration Jan15’21, never thought it would be filled but has in the panic sell of at the end of day. The Risk Reward ratio was too tempting
if this isn’t an appropriate background, i will never know …
Looks that the difference between futures and DOW is quite pronounced, futures are down less then the Dow. Is that an indication for anything?
#jadelizard After FB’s drop opened a JadeLizard 195/212.5/215 March13 for 3.31, can get better now
$FDX had tried as an earningstrade a strangle 150/190 exp Oct18. Didn’t give me the success I wanted, i rolled the call down to 165 collected extra premium and will wait a little. My BEP is 146.85 on the put side. This will be my last time trading FDX once this is resolved.
#fuzzy I had been doing well with KR, I actually closed my existing ones just beginning of the week as i had a decent profit in them (I guess luck was part of it…). Now, after that steep drop, i re-entered at 23/25/25 exp Jan 2021. Paid 3$ I BTO 3 contracts to allow me to sell only 2 calls against it, limiting my overall risk in case the stock price would over run my short calls.
#OT Pattern Day Trader
in a small account, I followed MamaCash on a LopHir and got flagged by IAB for too many day-trades. They count LopHir as two day-trades! Same for an Iron Condor, if you opened a spread it is one day-trade. Didn’t think of it as Tastyworks counts it as a single trade. I called and got already reset, but that makes things very complicated. Are the other brokers interpreting the rule as IAB does?
rolled SP 56 to SP59 both with exp Aug31 for an additional .40 credit. So far, this ticker is treating me nicely
ATVI is bouncing of the 200 day MA, usually a nice entry point. Earnings are not before November. Reason enough for me to try a pietrade with selling a put Aug31 at 71 at 1.02
took advantage of the drop and STO Jun21’19 80 put for .93
closed long strangle Aug 3 87.5/93, bought for 1.77 y’day and STC for 2.66.
gives this opportunity: STO IC 1710/1730/1850/1852.5 with a premium of 4.16 and expiration Jul27. Besides of the issue of Earnings before expiration, anything wrong with this?
I have one running in AMZN, Jun 29 1697.5/1707.5 and it is under pressure. How long would you hold out, there are just a few days to go, before you just close out trying to salvage some credit? I had paid 8.28
Didn’t like the action during the last 40 minutes, closed and received 5.87, well within the 2x loss limit.
still trying and making experiences. Today experienced a failure. Opened a FDX trade on 6/20 with expiration 6/29 247,5/252.50 with stock price at 252.50, paid 3.11 with the intention to STC at 4.20. I was aware of being tight but looked for a bounce after the earnings. Today I STC for a 1.02 to prevent going over 2x loss. Not sure what went wrong in my selection, please comment
ROKU rolled my Jun22 SP 46 to Jun29 and collected some much needed extra premium of 79 Cents
#pietrade Guess my first attempt with AMAT is off to a bad start… Am getting ready to sell calls
#Fuzzy I am in a few, but as with most strategies, results are mixed. Have a hard time to decide when is the right time to close once you are not profitable. I am clear about the combined risk between premium paid and the spread, so I do know what max exposure is. This is mainly such a long term strategy which makes it so difficult, for example I started with MU on 4/12 with 50/52.5/52.5 exp Jan18’19, paid 7.51. Shortly after MU started to tank, but I have been able to clear already a premium of 1.95 after fees by selling the calls, Delta is still almost 50. I am still considerably down at this time and am certainly not interested to give it all away. So, where would you stop and why?
WYNN re-entered as STO Jan18’19 put with a strike at 100. Got 1.92
#OT Jeff, is there a way to re-sort all posts including replies, not only the initial one and its replies, by date/time?
#Fuzzy just completed another on KR this morning. positive result thanks for the direction from you all. Profit was 40% and used a 2-lot
Results: I try to calculate the results of my trading for the year, not only in money but also as a percentage. Easy if one didn’t add any funds to the accounts during the reporting period, but I did. How do you calculate in this case? I guess I wouldn’t bother if I added 10% or so, but I actually doubled in early October. That seems to mess everything up. Thanks for your opinions and/or suggestions.
$PG sold to open a 80 put 3/16/18 as almost falling knife
$CMI #earnings STO Put Aug4 with 160 strike, during the last 15 cycles, the highest percentage drop as 6.5% with the average drop at about 3%. Waiting on a good fill now.
#earningstrade $ADBE releasing after close. average down moves have bee just about 3.5% with a max down of 9%. Up Moves were similar. looking to sto a strangle 132/150 exp 6/23
#Earnings $AVGO looks interesting with a potential max low of about 228 averaged thru the last 14 cycles, I STO a put 220 with Jun09 expiration for 1.03. Small of course.
$UVXY saw on TT an interesting suggestion BuCS 10/20 with Jun16 expiration. Relatively low cost bto around 2.05. Small position but have already entered a STC for about 1$ higher
#IronCondor I have one in TLT 115/117/125/127 exp 12/30, sold at .56 end of Nov. It has a small risk but the short put at 117 has been under pressure. Just buying back doesn’t get a fill, so I was thinking to close the short put which i can buy back for a loss of some 20 cents and let expire the rest. I should end up making some money, am i correct and have you done this before with some success?
$SVXY this morning I received a note from IAB that I have to liquidate my put options in my IRA account by Dec 23. Having to do with restrictions on limited partnerships. Is IAB the only that does that?
$BABA looking at an earnings trade, average low 96 and average high of 107 after report were the results during the last 8 reports. STO strangle 95/110 with expiration 11/4.
$SVXY just checking on weekly’s and realized that July 1 is the last open at this time. Was wondering when are new weekly options usually opened? What would be the range they cover, as in weekly options for two months or three? I am selling puts in a two and a 7 week cycle. Thanks
$CMI #Earnings opened short strangle 108/134 which have been max deviations over last 10 reports. CAT had its report and stayed within a reasonable range, these two have been moving quite closely to each other since last June.
$MCD #Earnings watching today for tomorrow mornings release. Waiting on a fill for a short strangle 123/135 with April22 exp. for a premium of .59 or better. The strikes are both outside of the max close for the last 9 quarters, probability over 80 %.