EIX – Parking More Cash

#suecollar #sleepatnight

BTO EIX stock @ $53.54 
STO EIX Sep 18: 52.5 call @ $3.40

BTO EIX Jan 2022: 70 put : @ $21.76

EIX (Edison International) currently pays a $2.55 per share dividend (4.7% yield).

For the $70 protective put you are paying (53.54 + 21.76) – 70 = $5.30 premium. That first call sale goes a long way on the cost reduction process.

Thanks Sue (and many others) for all the ideas on conservative trades that can generate a reasonable income with upfront protection.

EWZ – Parking Cash

#DiagonalButterfly

BTO EWZ Jan 2022 : long strangle $27 call / $37 put @ $16.70
STO EWZ Aug 07: 32.0 straddle @ $1.38

Classic Hedge Fund trick. The long strangle has 526 DTE. Back of the envelope calculation 526 / 7 = 75 weekly option expirations left. Guaranteed $10 when closing out the long strangle in Jan 2022. So $16.70 – $10.00 = $6.70 to finance in weekly sales. Just sold week 1 for $1.38 . Four more similar weeks and that’s a zero cost strangle.

Will be closing out the previous EWZ September 2020 strangle.

MDLZ

#DiagonalButterfly

BTC MDLZ July 31: 55.0 short straddle @ $0.52 (originally sold for $2.17)
STO MDLZ Aug 07: 55.0 short straddle @ $1.18

Premium seems to be dropping off pretty fast on this one – but sticking to the system.

Cover is the Jan 2022 long 40 put / 65 call strangle.

EWZ

#DiagonalButterfly

BTC EWZ July 31: 32.5 straddle @ $0.08 (originally sold for $1.55)
STO EWZ Aug 07: 32.5 straddle @ $1.65

The short straddle is covered by a long EWZ Sep 18: 24 put / 30 call strangle.

MDLZ

#DiagonalButterfly

BTC MDLZ July 24: 53.5 short straddle @ $1.38 (originally sold for $1.38)
STO MDLZ July 31: 55.0 short straddle @ $2.17

Cover is the Jan 2022 long 40 put / 65 call strangle.

EWZ

#DiagonalButterfly

BTC EWZ July 24: 31 straddle @ $1.54 (originally sold for $1.40)
STO EWZ July 31: 32.5 straddle @ $1.55

Standstill on premium income, but the Sep 18 $30 long call moves further ITM

The short straddle is covered by a long EWZ Sep 18: 24 put / 30 call strangle.

CINF

BTC August 21, 50 puts at $0.30, sold at $2.00

Hat tip @optioniceman

XLK DiagBFly

#DiagonalButterfly

BTO $XLK Jan 22: $90 call / $125 put long strangle @ $50
STO $XLK Aug 21: $110 short straddle @ $6.70

Minimum cash out value of the LEAP strangle is $35. Whatever happens I get to keep the $6.70 for the first (aggressive) sale of a straddle, so that leaves ($50 – $35 – $6.70) = $8.30 to finance over the next 550 days or $0.015 per day.

Given the volatility of the underlying it will be a roller coaster ride, but doable.

On this kind of trade I want to get the max premium out of the first sale (hence the straddle sale) – recognizing that an aggressive roll will be needed on one of the sides. For sure with XLK, future short term sales will be strangles not straddles.

MDLZ DiagBFly

#DiagonalButterfly

BTC MDLZ July 17: 51 short straddle @ $3.18 (originally sold for $1.50)
STO MDLZ July 24: 53.5 short straddle @ $1.38

MDLZ showing some strength, may have to move to selling short term strangles rather than straddles.

Cover is the Jan 2022 long 40 put / 65 call strangle.

EWZ DiagBfly

#DiagonalButterfly

BTC EWZ July 17: 30 straddle @ $1.26 (originally sold for $2.04)
STO EWZ July 24: 31 straddle @ $1.40

So far so accommodating with EWZ remaining in a nice channel. Premiums are coming down (obviously with a lower VIX), so I will look to roll the Sep 18 long strangle to Jan 22 to extend the selling opportunities.

The short straddle is covered by a long EWZ Sep 18: 24 put / 30 call strangle.

MDLZ DiagBFly

#DiagonalButterfly

BTC MDLZ July 10: 51 short straddle @ $0.83 (originally sold for $1.32)
STO MDLZ July 17: 51 short straddle @ $1.50

Learnt not to wait until OpEx Friday to manage these weekly options. Getting lucky so something is about to happen.

Cover is the Jan 2022 long 40 put / 65 call strangle.

EWZ DiagBfly

#DiagonalButterfly

Early management of the short sale, taking profits & rolling out to sell some additional premium

BTC EWZ July 10: 30 straddle @ $1.30 (originally sold for $1.90)
STO EWZ July 17: 30 straddle @ $2.04

The short straddle is covered by a long EWZ Sep 18: 24 put / 30 call strangle.

MDLZ DiagBFly

#DiagonalButterfly

BTC MDLZ July 02: 52.50 short straddle @ $0.82 (originally sold for $2.38)
STO MDLZ July 10: 51 short straddle @ $1.32

Selling weeklies for the moment, but may lengthen the time period to reduce screen staring time.

Cover is the Jan 2022 long 40 put / 65 call strangle.

EWZ DiagBfly

#DiagonalButterfly

BTC EWZ July 02: 28 straddle @ $2.31 (originally sold for $1.89)
STO EWZ July 10: 30 straddle @ $1.90

Tried to get clever by adding the new straddle late yesterday and hoping to close out the Jul 02 ITM short call at a smart price today – Wrong!

The short straddle is covered by a long EWZ Sep 18: 24 put / 30 call strangle.

EWZ DiagBFly

#DiagonalButterfly

BTC 1 EWZ June 26: 30 short straddle @ $1.91 (originally sold for $1.79)
STO 1 EWZ July 02: 28 straddle @ $1.89

The short straddle is covered by a long EWZ Sep 18: 24 put / 30 call strangle.

This setup appears to be pretty forgiving. One side always expires worthless, so I just buyback the side that is ITM. Let the OTM side expire worthless. Then re-establish a new weekly straddle.

Only problem is that the trade is so boring one starts to lose interest quickly. Long Live Boring!

EWZ DiagBFly

#DiagonalButterfly

BTC 1 EWZ June 19: 31 short straddle @ $1.37 (originally sold for $2.14)
STO 1 EWZ June 26: 30 straddle @ $1.79

The short straddle is covered by a long EWZ Sep 18: 24 put / 30 call strangle.

IRBT BWB

#BWB $IRBT BTO Aug 21, 80 / 75 / 65 Broken Wing Put Butterfly for 0.78 credit.

CINF

#ShortPuts – Thanks @optioniceman !

Sold CINF Aug 21 2020 50 Puts @ 2.00

MDLZ DiagBFly

#DiagonalButterfly

$MDLZ @ $52.74
BTO 1 MDLZ Jan 22: 40 Put / 65 call long strangle @ $4.65
STO 1 MDLZ July 02: 52.50 short straddle @ $2.38

Going aggressive on the first sale, bringing in over 50% cost of the long strangle emergency covers.

583 days left to sell more premium.

EWZ DiagBFly

#DiagonalButterfly

$EWZ @ $30.39 (exact same price as last Friday!)
BTC 1 EWZ June 12: 30 short straddle @ $0.37 (originally sold for $1.84)
STO 1 EWZ June 19: 31 straddle @ $2.14

The short straddle is covered by a long EWZ Sep 18: 24 put / 30 call strangle.

EWZ DiagBFly

#DiagonalButterfly 

Rolling the short straddle early due to the strong upward momentum.

$EWZ @ $30.39
BTC 1 EWZ June 05: 27 short straddle @ $3.55 (originally sold for $1.62)
STO 1 EWZ June 12: 30 straddle @ $1.84

The short straddle is covered by a long EWZ Sep 18: 24 put / 30 call strangle.

Now it becomes interesting. The strong move perhaps came earlier than I would have liked, but the long Sep $30 call is now ITM. That has come at a cost of some debit rolls, but the credits will come further down the timeline.

$BIDU DiagonalBFly

#DiagonalButterfly 

$BIDU @ $103.80
Original trade:

Sold to open 1 BIDU May 29 108 short straddle @ $3.78
Bought to open 1 BIDU Jul 02 100 put / 115 call strangle @ $5.29
Net debit trade of $1.51

With BIDU moving down, need to roll the put side of the 108 short straddle

Rolled to the Jun 05, 105 short put for a debit of $0.92 – however, improving $3 in position.

Will let the May 29, 108 short call expire worthless and willing to take the risk by already opening the new short call leg to complete the $105 short straddle:

STO BIDU Jun 05, $105 call @ $2.20

The original Diagonal Butterfly was put on for a debit of $1.51, so the overall position now is in credit for $0.69.

EWZ DiagBFly

#DiagonalButterfly 

$EWZ @ $27.26
Sold to open 1 EWZ June 05: 27 short straddle @ $1.62
Bought to open 1 EWZ Sep 18: 24 put / 30 call strangle @ $2.93
Net debit trade of $1.32

#DiagonalButterfly #Option Iceman $BIDU @…

#DiagonalButterfly #Option Iceman

$BIDU @ $107.75
Sold to open 1 BIDU May 29 108 short straddle @ $3.78
Bought to open 1 BIDU Jul 02 100 put / 115 call strangle @ $5.29
Net debit trade of $1.51

Should get a number of tries until July to sell very short term straddles.

I may look at another underlying to also pay down the debit.