Sold WFC SEP 25 2020 $30 CALLS @ 0.11
The stock is bouncing around just above 25.
The premium is about equal to the new quarterly dividend, which is not a lot these days.
In my estimation banks are pretty Covid-proof so I’ll hold on for an eventual recovery.
It would be nice if they managed their business better though 😦

Sold 1 VXX Sep 04 2020 28 Call / Bought 1 VXX Sep 25 2020 50 Call @ 0.15 Credit

Big ramp up is SPY plus a big move up in VIX/VXX

Today’s all-time-high in the S&P 500 was accompanied by the highest level ever for VIX at an all-time high stock print…

How long can this last?

/VX Futures, VIX and VXX all up again

Really afraid of the VIX move if the SPY were to actually go down

Sold 1 SQQQ Sep 04 2020 19 Put @ 0.22 on the open when the stock got down to 19.55

Apple’s Market Cap Surpasses The Entire Russell 2000 Due To “Option Insanity”

The convexity skew picture on big-name equities like Apple $AAPL has gone parabolically stupid. Let’s keep this simple and draw a conclusion.

Apple $AAPL Stock near $130
Jan $180 Strike Calls costs $4
Jan $80 Strike Puts costs $1
*Both options are $50 out of the money, approx data, BUT it is nearly 3x more expensive to buy upside risk in AAPL equity. What does this mean?

Apple closed near $130, while the cost of speculative upside calls is weighted heavily against the buyer.

Another new all time high in the SPY (ignoring pre/post markets) and /VX futures are still up, though not as much as yesterday.
VIX is down a bit now but opened at a new high for this move at 26.59

Another day, another tech stock rocketing higher after crushing earnings. Ho hum.
Huge earnings beats are becoming a weekly event, and there is no denying that the recent stock market action is producing some interesting results. With index inclusion decisions looming, trading should stay interesting.
Zoom Video Communications (ticker: ZM) stock is up 27% in premarket trading Tuesday after reporting second quarter numbers Monday evening. The company earned 92 cents a share. Analysts were looking for 45 cents in per-share earnings. It was a huge beat.
The stock is at $411 in premarket trading, bringing year-to-date gains to roughly 500%. Zoom’s market capitalization is now roughly $115 billion , making it worth more than IBM ( IBM ). Impressive.

Tesla Announces $5 Billion “At The Market” Stock Offering
https://www.zerohedge.com/markets/tesla-announces-5-billion-market-stock-offering

In short, for those asking why TSLA picked an ATM, it was to avoid an institutional roadshow where buyers can perform due diligence or simply ask questions.

https://www.wsj.com/articles/beware-as-wall-street-goes-direct-to-consumer-11592389980

Crazy town again – today’s move equivalent to 278 points on the old stock.
On my watch list, only TSLA and /NQ futures, WDC and every VIX related stock index or future is up.
Everything else down.

Anther new high for S&P500 although it reversed into the red at the end.
Seven straight days with new all time highs

In fact as the S&P hits all-time-highs, this is a level of VIX that has not been seen since those heady days of extreme speculation and retail day-trading muppetry. This is a very different regime of ‘walls of worry’ that we saw during the 2017/2018 all-time-highs…
This level of co-movement between VIX and stocks is highly unusual – and has typically not ended well for stocks. Except this time is even more extreme, as the correlation between stocks and vol is at its highest since the collapse of XIV and Volmageddon 2018…

https://www.zerohedge.com/markets/last-time-happened-was-day-dot-com-bubble-burst

Sold 1 VXX Sep 04 2020 30.00 Call at $0.47
Sold 1 VXX Sep 04 2020 30.50 Call at $0.43
Sold 1 VXX Sep 04 2020 31.00 Call at $0.39
Sold 1 VXX Sep 04 2020 32.00 Call at $0.33
Holding Long VXX October and November calls as a hedge

New Diagonal Call spread
Bought Open VXX Oct 16 2020 65 Calls / Sold VXX Sep 04 2020 27.5 Calls @ 0.03 Credit.
It’s not about how much you make in the first week of the diagonal spread, it’s how much you can make with re-writes.

Tesla ‘Losing Ground’ In Europe’s Biggest EV Market As July Registrations Crash

“Tesla posted a 76% decline…”

https://www.zerohedge.com/markets/tesla-losing-ground-europes-biggest-ev-market-july-registrations-crash

Ignoring the pre/post market moves, we just got another new high in the SPY. Six day run with new highs every day.

The VIX has dropped 3 points since 11 AM

Bought to close 1 AAL 08/28/2020 14.0 Covered Call / Sold 1 AAL 09/04/2020 14.0 Covered Call @ 0.46 Credit

Bought to close TSLA Aug 28 2020 2500/2700 Bear Call Spread @ 0.05. Sold 2 days ago @ 2.10

Replaced it with TSLA Sep 04 2020 2800/3000 Bear Call Spread @ 7.60 Credit

I have no idea what the stock does after the split but my short for next week is 300 points above the short for this week. (this week’s move low to high was about 375 points and peaked at 2318.49)

Stock is 2220

I should have waited one more day rolling my short 37 Puts 😦
At least I own some stock 🙂

Bought to close WDC 08/28/2020 37.0 Covered Calls / Sold WDC 09/04/2020 38.0 Covered Calls @ 0.22 Credit Plus a point higher on the strike price

Bought to close KSS 08/28/2020 23.0 Covered Calls / Sold KSS 09/04/2020 24.0 Covered Calls @ 0.12 Credit plus a point higher strike.
KSS is recovering from it’s swoon after earnings.

Bought to close AAL 08/28/2020 14.50 Diagonal Calls / Sold AAL 09/04/2020 15.50 Diagonal Calls @ 0.15 Credit plus a point higher strike

And so it begins
My VXX November Calls are all up (between 38% and 66%) above my cost.
Let the November madness do it’s work

https://www.zerohedge.com/markets/correction-watch-divergences-are-developing-between-large-us-stocks-everything-else

With only hours to go before expiration my 2500/2700 BCS still is trading @ 1.85
Stock is 2305

Highest close in 8 trading days.
Rolled my WDC 08/28/2020 37.0 Puts to WDC 09/04/2020 37.0 Puts @ 0.17 Credit

a bit more strength on the VIX and the upside warning will be cancelled
High 27.09 so far, up 15%

It’s getting a bit crazy again.
SPY sets a new all time high (almost to 350) and then reverses a bit back to unchanged.
However, the VIX explodes from 22.85 to 24.28 in just 20 minutes.

Something is going on under the surface but I don’t know what.
Algos at work?

Sold 1 VXX 08/28/2020 26.0 Diagonal Call @ 0.21
Sold 2 VXX 08/28/2020 27.0 Diagonal Calls @ 0.13

Creating Short Calendar Iron Condor Spreads to help balance out a lot of short Puts.
Sold the Calls against already long November Calls.
Hoping to keep VXX above 24 through Friday.

I would add to these if higher prices come along tomorrow.

Another new all time high @ 2166

Sold 1 TSLA 08/28/2020 2500 Call / Bought 1 TSLA 08/28/2020 2700 Call @ 2.10 Credit.

2 days to expiration

Sold 1 SPY Sep 02 2020 333.0 Call / Bought 1 SPY Oct 16 2020 346.0 Call @ 5.19 Credit.
If there is no market pullback in the next week, I can do a roll every few days after that.

SPY is at an all time high just above 347

Stocks in the SP500 that have eliminated their dividend – just a FYI
Carnival Corp.
Coty Inc. Class A
Nordstrom Inc.
Kohl’s Corp.
Macy’s Inc.
Marathon Oil Corp.
American Airlines Group Inc.
Royal Caribbean Group
Delta Air Lines Inc.
National Oilwell Varco Inc.
PVH Corp.
DXC Technology Co.
Boeing Co.
Alaska Air Group Inc.
Western Digital Corp.
Tapestry Inc.
Kimco Realty Corp.
Ralph Lauren Corp. Class A
Host Hotels & Resorts Inc.
Wynn Resorts Ltd.
Marriott International Inc. Class A
Southwest Airlines Co.
Molson Coors Beverage Co. Class B
Las Vegas Sands Corp.
Ford Motor Co.
Ross Stores Inc.
Universal Health Services Inc. Class B
Darden Restaurants Inc.
Hilton Worldwide Holdings Inc.
General Motors Co.
Gap Inc.
Expedia Group Inc.
TJX Cos.
Walt Disney Co.
Aptiv PLC
HCA Healthcare Inc.
Weyerhaeuser Co.
Freeport-McMoRan Inc.
Maxim Integrated Products Inc.
L Brands Inc.

AAPL new high at 515.98
TSLA new high at 2140

Sold AAL 08/28/2020 14.0 Covered Call @ 0.09
Sold AAL 08/28/2020 14.50 Diagonal Calls @ 0.06
Sold ADC 08/28/2020 50.0 Covered Call @ 0.10
Sold WBA 08/28/2020 42.0 Covered Calls @ 0.07
Sold WDC 08/28/2020 37.0 Covered Calls @ 0.06
Sold WFC 08/28/2020 25.0 Covered Call @ 0.09
Pays for this week’s beer run 🙂

Also:
Bought ADS 10/16/2020 70.0 Calls / Sold ADS 09/04/2020 50.0 Calls @ 0.25 Credit

Sold 1 SPY Sep 18 2020 335.0 Call / Bought 1 SPY Oct 16 2020 345.0 Call @ 3.61 Credit.
If there is no market pullback in the next month I can do a weekly roll after that.

SPY was down near 335 several times in the last 10 trading days

Bought to close 1 TSLA 08/21/2020 2300 Call @ 0.01
Sold this yesterday as part of a spread @ 1.96

Bought to close VXX 08/21/2020 25.0 Puts / Sold VXX 08/28/2020 24.0 Puts @ 0.15 Credit plus a point lower on the strike.

Sold these last Friday @ 0.71 and closed @ 0.45 today

I’ve been away from this one since January.

Taking a flyer here with 1 DTE

Sold 1 TSLA 08/21/2020 2300 Call / Bought 1 TSLA 2500 Call @ 1.52 Credit.

This stock topped out at 2021.99 so far, up 140 ish

Just WOW

S&P500 Dividend payers within 10% of their yearly lows.
On my watch list for now

Bought to Close KSS Aug 21 2020 22.5 Covered Calls 0.01. Sold before earnings @ 1.88.
So it didn’t quite protect me from the drop in the stock, but it did help.

Some diagonal bear spreads helped a bit too.

Adding some calls for this week hoping to pull my large put positions back out of the money before Friday
Sold VXX 08/21/2020 26.0 Calls @ 0.29
Sold VXX 08/21/2020 27.0 Calls @ 0.18.
Sold these against November long calls I’ve been adding for the last two weeks.

If the markets decline badly, these can easily be rolled.

Sold 1 SPY Sep 18 2020 333.0 Call / Bought 1 SPY Oct 16 2020 346.0 Call @ 5.02 Credit.
If there is no market pullback in the next month I can do a weekly roll after that.

SPY was down below 333 three times in the last 10 trading days

Bought to close KSS Aug 21 2020 24.50 Diagonal Calls @ $0.01.
They won’t trade any lower.

Interestingly the Aug 25 calls have not traded there yet

I have not yet replaced the dozen or so strike 25 short Puts I had that expired Friday, leaving a bunch of 2021 fully paid for long positions.

Tiptoeing back in with new diagonals:
Bought to open VXX Jun 18 2021 9.0 Puts / Sold VXX Aug 21 2020 24.5 Puts @ 0.12 Credit.

It would be nice if we got just a tiny market pullback this week.

Sold AAL 08/21/2020 14.0 Covered Call @ 0.28.
This replaces the 13.50 Call that expired Friday

Bought to open 1 VXX Nov 20 2020 60.00 Call @ 0.98.
Adding this to my stable of longs in November.
I don’t average down old positions. I lower the strike of new positions instead.
Next target is the Nov 55 Call at the same price.
Election chaos is coming …

My timing sucked today 😦

Bought to close VXX 08/14/2020 26.0 Puts @ 0.59.
Sold VXX 08/21/2020 25.0 Puts @ 0.71.
VXX is at 25.48

Sold the 26 puts all during the last week at 0.92, 0.60, 0.67, 0.70 and 0.69

Another one I was hoping would expire after it dropped to 22.56 this morning. I hate Friday explosions
Bought to close KSS 08/14/2020 23.0 Diagonal Calls / Sold VIAC 08/21/2020 25.0 Diagonal Calls @ 0.12 Credit.
KSS is at 23.87

I spent all of the last few days hoping this would expire. I hate Friday explosions
Bought to close VIAC 08/14/2020 28.0 Diagonal Calls / Sold VIAC 08/21/2020 30.0 Diagonal Calls @ 0.07 Credit.
VIAC is at 28.21

Sold VXX 08/21/2020 32.50 Calls @ 0.23 with the stock at 25.60
Will replace similar calls expiring tomorrow.
Written against Sept, Oct and Nov long calls.

Bought to close KSS 08/14/2020 22.00 Covered Calls / Sold KSS 08/21/2020 22.50 Covered Calls @ 0.80 Credit plus another half point on the strike.
That’s a pretty big premium with the stock at 23.0.

Also Bought to close KSS 08/14/2020 22.50 Diagonal calls / Sold 08/21/2020 24.50 Diagonal Calls @ 0.27 Credit plus a big 2 point jump in the short strike.

Peak Insanity: Tesla Adds $16 Billion In Market Cap After Announcing 5-For-1 Stock Split
Tesla stock has added almost half of GM’s market cap after hours on the news of the stock split.

Sold VXX 08/14/2020 31.50 Diagonal Calls @ 0.15.
Sold against long Sep 38 and 40 calls.

Sold VXX 08/14/2020 32.00 Diagonal Calls @ 0.16.
Sold against long Oct 48 and 51 calls.

Getting back 15% of the cost of my longs.

Converting some short diagonal put spreads to “Short Calendar Iron Condor Spreads”

Bought to open 1 VXX 11/20/2020 65.0 Call @ 0.94.
Preparing for election fireworks.

Bought VXX 01/21/2022 5.0 Puts / Sold VXX 08/14/2020 25.0 Puts @ 0.37 Credit
Bought KSS 10/16/2020 30.0 Calls / Sold KSS 08/14/2020 23.0 Calls @ 0.13 Credit
Bought AAL 10/16/2020 25.0 Calls / Sold AAL 08/14/2020 15.0 Calls @ 0.12 Credit
Bought WFC 09/25/2020 30.0 Calls / Sold WFC 08/14/2020 26.0 Calls @ 0.04 Credit

Bought to open 06/18/2021 10.0 Puts / Sold VXX 08/14/2020 26.0 Puts @ 0.14 Credit with VXX at 26.05.
The long has 312 Days to Expiration so the short can be rolled a few times 🙂

Sold ADS 08/14/2020 51.0 Covered Calls @ 0.25 replacing similar calls from last week
Sold ADS 08/14/2020 52.0 Diagonal Call @ 0.30 replacing a similar call from last week

Bought to close VXX 08/07/2020 27.0 Diagonal Puts @ 0.30

Sold these during the week @ 0.56/0.50/0.33 and 0.60

Replaced them with half the number of 08/14/2020 26.0 Puts @ 0.61.
Even swap on the cash.
New shorts are sold against 2021/2022 long puts.

Will add to my shorts for next week if higher prices become available.

Riding this rally a little longer
Bought to close AAL 08/07/2020 14.0 Diagonal Calls @ 0.02. Sold these @ 0.26 Yesterday.
Replaced them with AAL 08/14/2020 15.0 Calls @ 0.16.

Also rolled up 1 AAL 08/07/2020 13.0 Covered Call to AAL 08/14/2020 13.50 Covered Call @ 0.30 Credit

Bought to Open 1 VXX Nov 20 2020 70 Call at $0.98.
Preparing for election fireworks.

Bought to close WBA 08/07/2020 41.50 Covered Calls / Sold WBA 08/14/2020 42.0 Covered Calls @ 0.17 Credit.
I want to keep this dividend payer a bit longer and it goes ex-div on 08/18 for 0.4675 per share.
I’m guessing the stock will run a bit next week as the dividend date approaches.

Bought to close KSS 08/07/2020 21.50 Covered Calls / Sold KSS 08/14/2020 22.0 Covered Calls @ 0.32 Credit
Bought to close KSS 08/07/2020 22.0 Diagonal Calls / Sold KSS 08/14/2020 23.0 Covered Calls @ 0.17 Credit

Rolled my WDC 08/07/2020 40.0 Puts out a week to 08/14/2020 40.0 Puts for a 0.15 Credit

Bought to close VIAC AUG 07 2020 28.00 Calls @ 0.01. Sold these before earnings @ 0.49 on 08/03