$SVXY #ShortCalls #Rollup – Small trade in a managed account –
Bought to close SVXY Sep 16 2016 60.0 Calls / Sold SVXY Dec 16 2016 65.0 Calls @ 0.45 credit.
Author Archives: Option Iceman
$SVXY #ShortCalls – margin pressure…
$SVXY #ShortCalls – margin pressure forced me into the following roll –
Bought to close SVXY Sep 16 2016 60.0 Calls / Sold SVXY Jan 19 2018 90.0 Calls @ 0.40 credit.
$SVXY #CoveredCalls – a lesson…
$SVXY #CoveredCalls – a lesson on why not to trade on your phone.
Friday I was attempting to roll some strike 70 calls that were about to expire out 3 weeks to some Sep 30 2016 72.0 calls for a credit. I got a spread order off, Buying strike 70s at 5.81 and selling strike 72s at 6.69. All good, right? Well … not so much.
I realized a few hours later that I had fat-fingered the spread order and bought the Sep 9 2016 70 calls that I did not formerly have a position in, putting me long 10 contracts. And I was still short the Sep 2 2016 calls that I had intended to cover.
I spent the rest of the day trying to cover the Sep 2 contracts while liquidating the long Sep 9 contracts. The bid ask spreads just kept getting wider and wider until near the close I just put in a covering order at 6 for the Sep 2 contract figuring if it didn’t fill at least I could deliver some long stock I was holding. The stock was trading above 76 at the close but just after the close the stock dipped and the option order filled.
So this morning, thanks to strong opening I sold some stock at 76.30 in the premarket and then sold the long calls at 6.80 when the market opened.
So I made almost $1000 on the long options I didn’t really want. Most of the time it doesn’t work out so well. I’m cooling my jets for the rest of the week.
#OptionsExpiration #Weeklys #Sep02 – A…
#OptionsExpiration #Weeklys #Sep02 – A profitable week with Gold and Volatility strangles front and center again. An earnings trade on $LULU worked.
Raised even more cash in some IRA accounts.
— Expirations —
CF (Weekly) Sep 2 2016 20 Puts
LULU (Weekly) Sep 2 2016 65.5 Puts
LULU (Weekly) Sep 2 2016 67.5 Puts
MRO (Weekly) Sep 2 2016 16 Calls
NUGT (Weekly) Sep 2 2016 16 Puts
NUGT (Weekly) Sep 2 2016 17 Puts
NUGT (Weekly) Sep 2 2016 18 Puts
NUGT (Weekly) Sep 2 2016 26.7 Calls
SVXY (Weekly) Sep 2 2016 40 Puts
SVXY (Weekly) Sep 2 2016 55 Puts
SVXY (Weekly) Sep 2 2016 55.5 Puts
SVXY (Weekly) Sep 2 2016 56 Puts
SVXY (Weekly) Sep 2 2016 56.5 Puts
SVXY (Weekly) Sep 2 2016 57 Puts
SVXY (Weekly) Sep 2 2016 57.5 Puts
SVXY (Weekly) Sep 2 2016 58 Puts
SVXY (Weekly) Sep 2 2016 58.5 Puts
SVXY (Weekly) Sep 2 2016 59 Puts
SVXY (Weekly) Sep 2 2016 60 Puts
TWLO (Weekly) Sep 2 2016 53 Puts
UVXY (Weekly) Sep 2 2016 30 Calls
UVXY (Weekly) Sep 2 2016 30.5 Calls
UVXY (Weekly) Sep 2 2016 30.5 Calls
UVXY (Weekly) Sep 2 2016 31 Calls
UVXY (Weekly) Sep 2 2016 31.5 Calls
UVXY (Weekly) Sep 2 2016 31.5 Calls
UVXY (Weekly) Sep 2 2016 32 Calls
UVXY (Weekly) Sep 2 2016 32.5 Calls
UVXY (Weekly) Sep 2 2016 33 Calls
UVXY (Weekly) Sep 2 2016 44 Calls
UVXY (Weekly) Sep 2 2016 58 Calls
UVXY(ns) (Weekly) Sep 2 2016 12 Calls
XOM (Weekly) Sep 2 2016 85 Puts
— Assignments —
DUST(ns) (Weekly) Sep 2 2016 6.5 Calls (Covered) – profitable
MYL (Weekly) Sep 2 2016 44 Puts – going long some stock/IRA
SVXY (Weekly) Sep 2 2016 62 Calls (Covered/IRA) – profitable
SVXY (Weekly) Sep 2 2016 65 Calls (Covered/IRA) – profitable
$GDX #ShortCalls – Bought to…
$GDX #ShortCalls – Bought to close GDX Sep 2 2016 27.5 Puts @ 0.11 to avoid assignment.
I rolled into these last week and the roll was profitable
$NUGT #ShortCalls – Sold 1…
$NUGT #ShortCalls – Sold 1 NUGT March 17 2017 52.0 Call @ 2.10. Highest available strike
$SVXY #ShortCalls #VXXGame – sold…
$SVXY #ShortCalls #VXXGame – sold all these long term Calls on the opening creating an #OptionLadder –
Sold 1 SVXY Jan 19 2018 100 Call @ 14.80
Sold 1 SVXY Jan 19 2018 105 Call @ 13.20
Sold 1 SVXY Jan 19 2018 110 Call @ 12.50
Sold SVXY Jan 19 2018 120 Calls @ 9.80
Sold SVXY Jan 19 2018 125 Calls @ 9.00
Sold SVXY Jan 19 2018 130 Calls @ 7.90
Sold SVXY Jan 19 2018 135 Calls @ 7.10
Sold SVXY Jan 19 2018 140 Calls @ 6.40
$DUST #ShortCalls #Rollup – made…
$DUST #ShortCalls #Rollup – made some money on the short calls and I’m rolling the position up 5 points and out of the money
Bought to close DUST Sep 2 2016 33.0 Calls @ 1.37 (Originally sold @ 2.30)
Sold DUST Sep 23 2016 38.0 Calls @ 1.92
$SVXY #CoveredCalls #Rollup – the…
$SVXY #CoveredCalls #Rollup – the first of several rolls as SVXY sets a new YTD high above 75 –
Bought to close SVXY Sep 2 2016 71.0 Calls @ 4.33
Sold SVXY Sep 30 2016 74.0 Calls @ 5.43
Added 3 points to the strike price plus 1.10 credit to my cash balance. The new breakeven on the covered call is now well above the YTD high on SVXY.
$TWLO #ShortPuts – SMM issued…
$TWLO #ShortPuts – SMM issued a stock alert today on this one so I’m making a very short term trade –
Sold TWLO SEP 2 2016 53.0 Put @ 0.40 with the stock at 54.19
$NUGT #ShortPuts – sold all…
$NUGT #ShortPuts – sold all these just after NUGT turned higher
NUGT Sep 2 2016 18.0 Puts @ 0.95
NUGT Sep 9 2016 17.0 Puts @ 0.95
NUGT Sep 16 2016 16.0 Puts @ 0.95
$DUST #ShortCalls – Sold 1…
$DUST #ShortCalls – Sold 1 DUST 20/100 MAR 17 2017 12.0 Call @ 2.10 adding to my position. This is the old pre split contract
$SVXY #ShortCalls #VXXGame – on…
$SVXY #ShortCalls #VXXGame – on my orders on SVXY leaps, I got the 2nd of them off this afternoon.
Sold 1 SVXY Jan 19 2018 110.0 Call @ 11.50 with the stock at 72.75.
Trying for another one a point higher.
#BPE – TOS tells me the buying Power effect is only 731.15 for the next one.
$NUGT #ShortPuts – Back in…
$NUGT #ShortPuts – Back in it. Sold NUGT Sept 2 2016 17.0 Puts @ 0.35. These should expire Friday
$DUST #ShortCalls – Sold 1…
$DUST #ShortCalls – Sold 1 DUST 20/100 Mar 17 2017 12.0 Call @ 1.40 with the stock at 36.74.
This is the old pre-split contract and the effective strike price is 60 on the new stock.
Adding to an existing position since the option only covers 20 shares.
#BPE (new hashtag for Buying power effect) is only 196.11
$CF #CoveredCalls – Sold CF…
$CF #CoveredCalls – Sold CF Oct 07 2016 30.0 Calls @ 0.38 on a jump in CF this morning.
$POT & $AGU were halted following chatter about merger talks according to someone over on OMM
$SVXY #ShortCalls #VXXGame – with…
$SVXY #ShortCalls #VXXGame – with little else going on, I put some orders in last night on some leaps on SVXY. I got the first of them off this morning.
Sold 1 SVXY Jan 19 2018 100.0 Call @ 13.80 with the stock at 73.27.
Trying for another one a point higher. TOS tells me the buying Power effect is only 731.45 for the next one.
$BMY #ShortPuts – Sold 1…
$BMY #ShortPuts – Sold 1 BMY Dec 16 2016 55 Put at 1.77.
My only trade today.
#BoringMarket
#OptionsExpiration #Weeklys #Aug26 – an…
#OptionsExpiration #Weeklys #Aug26 – an interesting week and a volatile expiration day.
Despite the midweek drop in $NUGT my puts stayed just far enough out of the money to expire. $SVXY set a slightly higher YTD high on Friday, only to get crushed in the afternoon. I let more stock go in IRA accounts to raise even more cash.
— Expired —
CF (Weekly) Aug 26 2016 20.5 Puts
NUGT (Weekly) Aug 26 2016 16 Puts
NUGT (Weekly) Aug 26 2016 17 Puts
NUGT (Weekly) Aug 26 2016 18 Puts
NUGT (Weekly) Aug 26 2016 19 Puts
NUGT (Weekly) Aug 26 2016 20 Puts
NUGT (Weekly) Aug 26 2016 21 Puts
NUGT (Weekly) Aug 26 2016 21.6 Puts
NUGT (Weekly) Aug 26 2016 43 Calls
SRPT (Weekly) Aug 26 2016 10 Puts
SRPT (Weekly) Aug 26 2016 41 Calls
TIF (Weekly) Aug 26 2016 54 Puts
TIF (Weekly) Aug 26 2016 55 Puts
SVXY (Weekly) Aug 26 2016 57.5 Puts
SVXY (Weekly) Aug 26 2016 68 Puts
SVXY (Weekly) Aug 26 2016 71 Puts
UVXY (Weekly) Aug 26 2016 25 Calls
UVXY (Weekly) Aug 26 2016 25.5 Calls
UVXY (Weekly) Aug 26 2016 26 Calls
UVXY (Weekly) Aug 26 2016 27 Calls
UVXY (Weekly) Aug 26 2016 28.5 Calls
UVXY (Weekly) Aug 26 2016 38 Calls
UVXY (Weekly) Aug 26 2016 39 Calls
UVXY (Weekly) Aug 26 2016 40 Calls
UVXY (Weekly) Aug 26 2016 45 Calls
UVXY (Weekly) Aug 26 2016 55 Calls
UVXY (Weekly) Aug 26 2016 58 Calls
UVXY 20/(Weekly) Aug 26 2016 19 Calls
XOM (Weekly) Aug 26 2016 80 Puts
— Assignments —
DUST 20/(Weekly) Aug 26 2016 6 Calls (Covered)
SVXY (Weekly) Aug 26 2016 59 Calls (Covered)
SVXY (Weekly) Aug 26 2016 60 Calls (Covered)
SVXY (Weekly) Aug 26 2016 63 Calls (Covered)
SVXY (Weekly) Aug 26 2016 66 Calls (Covered)
$NUGT #ShortPuts – Bought to…
$NUGT #ShortPuts – Bought to close NUGT Aug 26 2016 21.8 Puts (the old 109 Puts) @ 0.05 to avoid possible assignment
$UVXY #ShortCalls #VXXGame – sold…
$UVXY #ShortCalls #VXXGame – sold these on the move to 22 in UVXY
Sold UVXY Sep 2 2016 32/32.5/33 Calls – all at 0.22
Sold UVXY Sep 16 2016 45/46 Calls @ 0.37
SVXY #CoveredCalls – in my…
SVXY #CoveredCalls – in my account with the 3:1 short call to stock ratio, I rolled this week’s calls out to a new week to keep my #OptionLadder going.
Bought to close SVXY Aug 26 2016 65.0 Calls @ 5.56
Sold SVXY Oct 07 2016 73.5 Calls @ 5.66.
Covered commissions on the switch and moved the strike price up 8.5 points.
One of these days I’ll let one of these weekly calls get assigned — or — one will actually expire.
$SVXY #ShortPuts – more gifts…
$SVXY #ShortPuts – more gifts 🙂
Sold SVXY Sep 2 2016 57.5 Puts @ 0.20 with the stock at 69.45
Sold SVXY Sep 2 2016 57.0 Puts @ 0.20 with the stock at 69.20
Sold SVXY Sep 2 2016 56.5 Puts @ 0.20 with the stock at 69.17
$SVXY #ShortPuts – more gifts…
$SVXY #ShortPuts – more gifts 🙂
Sold SVXY Sep 2 2016 58.0 Puts @ 0.25 with the stock at 70.64 and a week to go until expiration.
$SVXY #CoveredCalls #Rollup – did…
$SVXY #CoveredCalls #Rollup – did the following rollup with the stock at 71
Bought to close SVXY Aug 26 2016 69.0 Calls @ 1.94
Sold SVXY Sep 02 2016 71.0 Calls @ 2.19
I bumped the strike price up 2 points and added a 0.25 credit to my account while only adding one week to my holding period.
I was going to let this position get assigned but the collapse in the stock from 74.24 to 71 made the roll too attractive. And I made money on the calls that I covered. Win-Win
$SVXY #LongStock – an old…
$SVXY #LongStock – an old GTC order with a limit at the old YTD high of 74.16 filled during the Yellen madness.
Sold SVXY @ 74.16. This sale was 10% of my remaining position.
$DUST #ShortCalls #Rollup – the…
$DUST #ShortCalls #Rollup – the split complicated matters but this roll was still also slightly cash flow positive.
Bought to close 10 DUST(ns) Aug 26 2016 5.5 Calls @ 0.90
Sold 2 DUST Sep 09 2016 30.0 Calls @ 4.60
This one was harder because it was further in the money.
$GDX #ShortPuts – Bought to…
$GDX #ShortPuts – Bought to close GDX Aug 26 2016 28.0 Puts @ 0.18 to avoid assignment.
Originally sold for an average of 0.22, so a slight profit on the trade. Thanks Janet.
$DUST #ShortCalls #Rollup – the…
$DUST #ShortCalls #Rollup – the split complicated matters but the roll was still slightly cash flow positive
Bought to close 10 DUST(ns) Aug 26 2016 6.0 Calls @ 0.40
Sold 2 DUST Sep 02 2016 33.0 Calls @ 2.30
$SVXY #CoveredCalls #Rollup – did…
$SVXY #CoveredCalls #Rollup – did the following rollup with the stock at 73.86
Bought to close SVXY Aug 26 2016 69.0 Calls @ 4.58
Sold SVXY Oct 07 2016 75.0 Calls @ 5.13.
I bumped the strike price up 6 points and added a 0.55 credit to my account.
My first trade in this new weekly contract and the strike price is above the YTD high.
$NUGT #ShortCalls – Sold 1…
$NUGT #ShortCalls – Sold 1 NUGT Dec 16 2016 52.0 Call @ 1.35. Highest available strike.
$SVXY #ShortPuts – Sold SVXY…
$SVXY #ShortPuts – Sold SVXY Sep 2 2016 59.0 Puts @ 0.20 with the stock at 72.38 and a week to go until expiration. A gift 🙂
$MYL #ShortPuts #FallingKnife – Dan…
$MYL #ShortPuts #FallingKnife – Dan mentioned this morning that he thought Mylan may have bottomed. Maybe, maybe not. However, opportunities still exist to sell puts with strike prices below the YTD low of 37.59
$UVXY #ShortCalls #VXXGame – sold…
$UVXY #ShortCalls #VXXGame – sold all these on the open with the stock at 21.36
Sold UVXY Sep 2 2016 31.5 Calls @ 0.22
Sold UVXY Sep 9 2016 35.0 Calls @ 0.35
Sold UVXY Sep 9 2016 35.5 Calls @ 0.35
Sold UVXY Oct 21 2016 55 Calls @ 1.30
$WYNN #FallingKnife – lots of…
$WYNN #FallingKnife – lots of good opportunities in the October short puts with plenty of room for a further decline
$NUGT #ShortPuts Sold 1 NUGT…
$NUGT #ShortPuts
Sold 1 NUGT AUG 26 2016 90.0 Put @1.38
Sold NUGT AUG 26 2016 85.0 Puts @ 0.75
Sold NUGT AUG 26 2016 80.0 Puts @ 0.36
$SVXY #CoveredCalls – Early assignment…
$SVXY #CoveredCalls – Early assignment last night on 5 SVXY Aug 26 2016 63.0 Calls in an IRA account. I probably wasn’t going to roll them anyway. Originally sold @ 4.55.
More cash reserves for the pullback that I hope is coming
$TWLO #ShortCalls – saw an…
$TWLO #ShortCalls – saw an interesting segment on Fast Money about this recent IPO.
Sold TWLO Sep 70 Calls @ 0.75 as an initial position. Trying to add more
$NUGT #ShortCalls – Bought to…
$NUGT #ShortCalls – Bought to Close 1 NUGT JAN 20 2017 185.0 Call @ 23.00 for a slight profit.
This is my last long term short call on NUGT
$NUGT #ShortCalls – Bought to…
$NUGT #ShortCalls – Bought to close NUGT Dec 16 2016 185.0 Calls @ 22.00
Getting out of the way of the split tomorrow. Actually made a few bucks profit on this trade.
$SWN #CoveredCalls – Sold SWN…
$SWN #CoveredCalls – Sold SWN Sep 16 2016 15.0 Calls @ 0.38. Replaces the August calls that just expired Friday.
$UVXY #ShortCalls – covered all…
$UVXY #ShortCalls – covered all these within a few seconds of each other after having GTC orders in for a month
Bought to close UVXY(ns) Sep 16 2016 45/50/55/60/65/70/90/95 Calls @ 0.01
48 total calls
$SVXY #ShortPuts – Sold SVXY…
$SVXY #ShortPuts – Sold SVXY Aug26 2016 57.5 Puts @ 0.15.
Only got a partial fill because all today’s volume is me 🙂
$GDX #ShortPuts – who needs…
$GDX #ShortPuts – who needs NUGT. Sold GDX Aug 26 2016 28.0 Puts @ 0.13.
$NUGT #ShortCalls – clearing the…
$NUGT #ShortCalls – clearing the decks a bit before the split
Bought to close NUGT Jan 20 2017 100 Calls @ 60.11.
I can always reestablish bearish calls after the split.
$UVXY #CoveredCalls – sold these…
$UVXY #CoveredCalls – sold these early
UVXY Aug 26 2016 25.0 Calls @ 0.17
UVXY Aug 26 2016 26.0 Calls @ 0.13
UVXY Sep 9 2016 35.0 Calls @ 0.39
UVXY Sep 23 2016 45.0 Calls @ 0.64
$DUST #CoveredCalls – Sold DUST…
$DUST #CoveredCalls – Sold DUST Aug 26 2016 6.0 Calls @ 0.20
$NUGT #ShortPuts – Sold these…
$NUGT #ShortPuts – Sold these early
NUGT Aug 26 2016 109 Puts @ 0.60
NUGT Aug 26 2016 108 Puts @ 0.55
NUGT Aug 26 2016 105 Puts @ 0.40
NUGT Aug 26 2016 100 Puts @ 0.25
NUGT Aug 26 2016 95.0 Puts @ 0.20
$DUST #ShortCalls #Speculation – Sold…
$DUST #ShortCalls #Speculation – Sold DUST Aug 26 2016 5.5 Calls @ 0.30. Pure speculation and cheaper than shorting NUGT Puts.
If DUST stays in the current trading range, these should expire next Friday or will be cheap to cover
$SRPT #ShortStrangle – I have…
$SRPT #ShortStrangles – I have some strangles expiring today. Adding some for next week.
Sold SRPT Aug 29 2016 10.0 Puts / SRPT Aug 29 2016 41.0 Calls @ 0.55 Credit with the stock at 25.79
$UVXY #ShortCalls – Sold UVXY…
$UVXY #ShortCalls – Sold UVXY Aug 26 2016 28.5 Calls @ 0.16 for next week’s expiration.
$SVXY #CoveredCalls #OptionLadder – a…
$SVXY #CoveredCalls #OptionLadder – a couple of large rollups on the opening tick. I split a large short position expiring today into two new positions with different expiration dates.
Bought to close SVXY Aug 19 2016 70.0 Calls @ 3.30 / Sold Sep 16 2016 75.0 Calls @ 3.40
Bought to close SVXY Aug 19 2016 70.0 Calls @ 3.32 / Sold Sep 23 2016 75.0 Calls @ 4.38
Both trades are cash flow positive, adding to my cash balance, and this moves the strike price up 5 points, above the YTD high of 74.16.
I might have been able to do better by waiting but at least it’s a big position I don’t have to watch today.
$SVXY #CoveredCalls #Rollup – one…
$SVXY #CoveredCalls #Rollup – one of many rollups I’m doing in various accounts for SVXY.
Bought to close SVXY Aug 19 2016 64.0 Calls @ 8.84
Sold SVXY Sep 30 2016 68.0 Calls @ 9.14 for a 0.30 Credit plus 4 points on the strike price.
The new strike price is still in the money with the stock at currently 72.70 and the breakeven for the new short call is at 77.14, well above the YTD high on the stock.
As I said last week, in this account I’m using a 3:1 overwrite strategy with an #OptionLadder approach. So if SVXY collapses again I’m not likely to get hurt to the downside unless the stock stays down for more than 6 weeks. In most cases for each individual week, I only have calls outstanding on 50% of my long stock. I roll that position each week out to a week that I have no exposure in, at successively higher strike prices.
At some point I will start letting some of my stock go and switch to selling puts. But for now this is working.
$VIX – apparently all is…
$VIX – apparently all is right with the world and new highs are coming, as the VIX index collapses back below 12. I don’t get it
$NUGT #ShortCalls – Sold NUGT…
$NUGT #ShortCalls – Sold NUGT Aug19 2016 175 Calls @ 1.05
My short Puts from 137 down to 130 are looking better now.
$NUGT #ShortPuts #Rollup – Bought…
$NUGT #ShortPuts #Rollup – Bought to close 1 NUGT Aug 19 2016 70.0 Call @ 0.01 /Sold 1 NUGT Aug 19 2016 130.0 Put @ 1.11 For a 1.10 credit.
Also sold 2 NUGT Aug 19 2016 175 Calls @ 0.80.
All these should expire Friday
$NUGT #ShortPuts – Adding on…
$NUGT #ShortPuts – Adding on to my earlier play
Sold 1 NUGT AUG 19 2016 135.0 Put @ 1.10 with the stock at 151.27
Sold 1 NUGT AUG 19 2016 134.0 Put @ 1.10 with the stock at 149.72
Sold 1 NUGT AUG 19 2016 133.0 Put @ 1.10 with the stock at 148.19
Done for now. I still have some 130 calls that need to be dealt with this week.
$NUGT #ShortPuts – Had some…
$NUGT #ShortPuts – Had some cash to play with in an IRA
Sold 1 NUGT AUG 19 2016 136.0 Put @ 1.10 with the stock at 151.69
Sold 1 NUGT AUG 19 2016 137.0 Put @ 1.30 with the stock at 151.77
I expect these to expire Friday
$NUGT – all over the…
$NUGT – all over the map today. Up 12 in the premarket and now down 2
$UVXY #ShortCalls – Sold the…
$UVXY #ShortCalls – Sold the following for to add to my previous trades for Friday’s expiration. Easy to roll if they get in the money.
UVXY AUG 19 2016 26.5 Calls @ 0.12
UVXY AUG 19 2016 27.0 Calls @ 0.11
I wonder where SVXY will be if these get in the money … 🙂
$UVXY #CoveredCalls #IRA – Sold…
$UVXY #CoveredCalls #IRA – Sold the following for this week in various IRA accounts. No margin pressure, and easy to roll if they get in the money.
UVXY AUG 19 2016 24.5 Calls @ 0.21
UVXY AUG 19 2016 25.0 Calls @ 0.20
UVXY AUG 19 2016 25.5 Calls @ 0.18
UVXY AUG 19 2016 26.0 Calls @ 0.15
$SVXY #ShortCalls #Rollup – since…
$SVXY #ShortCalls #Rollup – since my account seems to come under margin pressure every time SVXY approaches 74, I put in this diagonal rollup spread last week. It finally filled.
Bought to close SVXY Sep 16 2016 60.0 Calls @ 13.99
Sold SVXY Jan 19 2018 95.0 Calls at 14.22.
Cash flow positive at a 0.23 Credit and bumped the strike price 35 points. Gives me some room to maneuver for margin purposes.
$UVXY #ShortCalls – Sold UVXY…
$UVXY #ShortCalls – Sold UVXY AUG 19 2016 32.0 Calls @ 0.11. I think I caught the other side of someone’s market order to buy.
$VIX – http://blog.gavekalcapital.com/?p=11556 The relationship…
$VIX – http://blog.gavekalcapital.com/?p=11556
The relationship between the VIX and the spread between high yield bonds over 10-year treasuries is highly correlated (87% over the past 15 years). This, of course, makes intuitive sense. The VIX tends to spike when confidence in stocks or the economy is shaky. Which is also true for high yield bonds. When investors begin to worry that high yield issuers won’t be able to make debt payments because of, for example, slowing growth, high yield bonds usually sell off against treasury bonds.
This occurred earlier this year in February when the VIX spiked to over 28 and the spreads widened to 850 bps. Since then as investors climb the wall of worry the level of the VIX and high yield spreads have fallen in tandem. However, the level of the VIX has fallen much further and signifies that fears in the equity market are much lower than fears in the bond market.
At no point over the past 15 years has this level of the VIX occurred when high yield bond spreads are this elevated. A simple regression model suggests that the VIX should be around 19 rather than the current level of 12. Or looked at from the other angle, high yield spreads are usually 185 bps lower than they currently are when the VIX is at 12.
Presumably, this relationship will begin to normalize. The question that needs to be answered is will it normalize because investors bid up high yield bonds or because the complacency in the stock market erodes away?
#OptionsExpiration #Weeklys #Aug12 – another…
#OptionsExpiration #Weeklys #Aug12 – another week another new high for the market, $SVXY and $NUGT.
I finally decided to let go of part of an overly large position in SVXY in some retirement accounts. These had been rolled up several times but the additional premium just wasn’t there today. But, cash is good!!!
— Expired —
CHK (Weekly) Aug 12 2016 6 Calls (Covered)
KORS (Weekly) Aug 12 2016 43 Puts
NUGT (Weekly) Aug 12 2016 205 Calls
NUGT (Weekly) Aug 12 2016 80 Puts
SVXY (Weekly) Aug 12 2016 50 Puts
SVXY (Weekly) Aug 12 2016 70 Puts
UVXY (Weekly) Aug 12 2016 24 Calls (Covered)
UVXY (Weekly) Aug 12 2016 25.5 Calls (Covered)
UVXY (Weekly) Aug 12 2016 26 Calls (Covered)
UVXY (Weekly) Aug 12 2016 26.5 Calls (Covered)
UVXY (Weekly) Aug 12 2016 27 Calls (Covered)
UVXY (Weekly) Aug 12 2016 28 Calls
UVXY (Weekly) Aug 12 2016 58 Calls
UVXY 20/(Weekly) Aug 12 2016 12 Calls
UVXY 20/(Weekly) Aug 12 2016 18 Calls
— Assignments —
SVXY (Weekly) Aug 12 2016 58.5 Calls (Covered/IRA Account)
SVXY (Weekly) Aug 12 2016 60 Calls (Covered/IRA Account)
SVXY (Weekly) Aug 12 2016 64 Calls (Covered/IRA Account)
SVXY (Weekly) Aug 12 2016 65 Calls (Covered/IRA Account)
SVXY (Weekly) Aug 12 2016 66 Calls (Covered/IRA Account)
$NUGT #ShortPuts – with a…
$NUGT #ShortPuts – with a week to go I rolled up some short puts for a little more premium.
Bought to Close NUGT Aug 19 2016 85.0 Puts @ 0.04
Sold NUGT Aug 19 2016 135.0 Puts @ 1.19.
$NUGT – was assigned early…
$NUGT – was assigned early on an Aug 12th ITM call. Just closed the short stock at 165.
I was a bit worried when the pre-market high of 182.37 showed up on my chart.
$SVXY #CoveredCalls #Rollup – Deep…
$SVXY #CoveredCalls #Rollup – Deep in the money rollups are tough to get off.
Bought to close SVXY Aug 12 2016 60.0 Calls @ 11.70
Sold SVXY Sep 23 2016 63.0 Calls @ 12.10 for a 0.40 Credit plus 3 additional points on the strike price.
$SVXY #CoveredCalls #Rollup – one…
$SVXY #CoveredCalls #Rollup – one of many rollups I’m doing in various accounts for SVXY.
Bought to close SVXY Aug 12 2016 65.0 Calls @ 5.70
Sold SVXY Sep 23 2016 71.5 Calls @ 5.90 for a 0.20 Credit plus 6 1/2 points on the strike price.
The new strike price is slightly out of the money with the stock at currently 71.30 and the breakeven for the new short call is at 77.40, well above the YTD high on the stock.
As I said last week, in this account I’m using a 3:1 overwrite strategy with an #OptionLadder approach. So if SVXY collapses again I’m not likely to get hurt to the downside unless the stock stays down for more than 6 weeks. In most cases for each individual week, I only have calls outstanding on 50% of my long stock. I roll that position each week out to a week that I have no exposure in, at successively higher strike prices.
At some point I will start letting some of my stock go and switch to selling puts. But for now this is working.
$SVXY #ShortCalls – As SVXY…
$SVXY #ShortCalls – As SVXY pulls back a bit, I’m getting a bigger credit for doing this roll. I also have an order in to liquidate more stock at the recent high of 74.16, should it return there anytime soon.
Bought to close SVXY Sep 16 2016 60.0 Calls @ 13.78
Sold SVXY Jan 19 2018 90.0 Calls @ 15.28
$UVXY #ShortCalls #VXXGame – Sold…
$UVXY #ShortCalls #VXXGame – Sold UVXY Oct 21 2016 55.0 Calls @ 2.05. This is the highest available strike price and represents almost 10% of the underlying equity, currently at 21.30
$UVXY #ShortCalls – getting some…
$UVXY #ShortCalls – getting some more done on the move to 22 in UVXY
Sold UVXY AUG 19 2016 34.0 Calls @ 0.24 – these expire next week
Sold UVXY AUG 26 2016 40.0 Calls @ 0.43
$UVXY #ShortCalls #VXXGame – Sold…
$UVXY #ShortCalls #VXXGame – Sold UVXY Sep 16 2016 56.0 Calls @ 0.78. Highest available strike price
$UVXY #ShortCalls – Covered these…
$UVXY #ShortCalls – Covered these positions to free up room to sell shorter term calls expiring this week and next.
Bought to close UVXY2 SEP 16 2016 100.0 Calls @ 0.01
Bought to close UVXY2 SEP 16 2016 105.0 Calls @ 0.01
Bought to close UVXY2 SEP 16 2016 110.0 Calls @ 0.01
All these were sold on 6/13/16 @ 0.84
$SVXY #ShortCalls – while liquidating…
$SVXY #ShortCalls – while liquidating some long stock today, I had to deal with a bunch of Short Calls to relieve Margin pressure. So I did a big rollup.
Bought to close SVXY Sep 16 2016 60.0 Calls @ 14.65
Sold SVXY Jan 19 2018 90.0 Calls @ 15.55
Cash flow positive and much less expensive to carry with the stock in the low 70’s.
My new long term short calls will give me some cover once I return to selling SVXY puts again.
That won’t be for a while, but at least it’s out there.
Options Bistro 