Morning Hope everyone had a great weekend. #VXXGame, #ContangoETFs
Last Friday I was assigned my short Jan 20th 95 and 100 Calls leaving me with zero SVXY stock in quit a while. This morning I sold Feb 17th 90 Put @ 1.60 and Feb 10th Put @ 1.05 when $SVXY was around $110.0. I will roll to avoid assignment.
Afternoon all. Hope everyone is doing well and gearing up for the madness of the season. Late yesterday I bought back my Dec 09th 80 Calls for 9.80 when $SVXY was at 89.61. I had originally sold for 3.60 back on Nov 15th. It was trading close to 100 Delta so I figured with the strong up trend in the market I had a good chance to improve the position with a higher strike. I’m looking at Dec 30th 95’s to cover if $SVXY climbs closer to 93 or 94. I don’t have much long stock left in my IRA to sell calls against thus the trade change. However I expect to be completely out or nearly so by year end and will return to put selling as most of my cash is currently committed to #YieldHog orders.
I have been selling puts against SVXY ala Iceman for a few years now learning from the Master while making all the stupid mistakes I can come up with. In keeping with that trend, I’ve come up with a new one. Those low strike Put entries have been great for obtaining long stock to be covered by calls. My general parameters for short Puts has been a three week holding period with premium being around 2% of the strike while taking the rare assignment. Over time it appears to me that covered calls have greater potential returns due to premiums coupled with gains when the assigned stock is sold. With the market at near record highs the low Put strikes with sufficient premium are more of a long term memory as I wait for the next split or a whooshing pull back.
I am managing a small account that has level 1 trading, covered calls only. Without the permission to sell Puts I’m challenged with doing income trades via covered calls against equities. So I want to explore the possibility of using SVXY for income trades in this account. In my personal account I have elected to put on a covered call that expires this Friday, Nov 18th to work through the entry and stop management mechanics before deploying this into the other account.
This morning :
Bought stock @ 75.41 and sold a Nov 18th 75.5 call for 2.30 when the stock pushed back above VWAP the second time. This yielded a basis of 73.25 and a potential gain of +/-2.8% for the week if assigned @ 75.50. I set a position stop at mark 70.00 with a limit to close at 70.10. If the position is closed it would result in a loss of around $340 or approximately 4.5% of the net debit to enter the trade. My entry was not well timed, being a few minutes early of the morning drop. Had I waited I might not have put the trade on but definitely would have picked a lower strike if I had. Will this prove to be a better method for an account that that cannot sell puts and does not involve the issues associated with individual equities earnings, and analysts opinions?
Comments appreciated especially if I have missed something.
Popped in to see how the relief rally was going and write up a trade. Sold Nov 11th 77 Calls at 1.55 when SVXY was at 70.80. These are covered by long stock that was originally covered by Nov 4th 75 Calls that obviously expired last Friday. Otherwise sitting on my hands out in the gardens.
Sold to open Nov 25th 50 Put @ 1.05. Put this on and went to try and vote. Huge lines here in NC. Wife had to get to work so we shall try again tomorrow. Filled while we were out. SPX down to the 200dma. I just might wait until after the election to do anything else.
$NUGT #ShortPuts – Bought to close NUGT (Weekly) Oct 28 2016 13 PUTS @ 0.15 to avoid possible assignment. Originally sold @ 0.75
Who knew that NUGT would rally from 12.40 to 13.40 in only an hour?
$DUST #ShortCalls – Sold 1 DUST Dec 16 2016 70.0 Call @ 2.40. Adding to my position at the highest available strike.
$DUST #ShortCalls – Sold 1 DUST Dec 16 2016 70.0 Call @ 2.31. Highest available strike.
STO Nov 18 $70 calls @ $0.55
$DUST $ShortCalls – Sold 1 DUST DEC 16 2016 70.0 Call @ 2.10 with the stock at 42.83.
Highest available strike
Borrowing an idea from Jeff, from yesterday, I sold $DUST Nov 4 50 calls @ 1.00.
Gold miners are pretty weak today given that gold is flat to up a smidge.
STO November 25, 55/65 bear call spread @0.90 cents.
Sold DUST DEC 16 2016 55.0/65.0 Bear call spreads @ 1.32
#ContantoETFs STO DUST Nov 4th 50 calls for .75
Ok. DUST has ground me into dust today lol. See posts from yesterday. Would you guys stick with it or just dump it all and take the loss? My position is small. But it did get pounded today. Seems like gold may go higher for a bit.
In a nutshell: Yesterday I bought stock for 41.66, sold a oct28 42 call against it, and sold a oct28 42 put. If I hang on and am assigned shares on Friday my cost basis will be 39.49.
Sold $NUGT Dec 2 (weekly) 21 calls @ .65
Added 1 more
STO Nov 18 $65 calls @ $0.60
Hey @fuzzballl, did TD Ameritrade make a change to margin requirements on these instruments? Last week when I was looking at some trades, the margin requirement was huge. This week I’ve put on a couple of trades because the margin requirement is only a fraction of what it was a week ago. I’d guess that it is about 1/3 of what it was. Reference our conversation last week on the topic.
Just curious if you have seen this as well. At least in my account, something definitely changed.
STO Nov 11 $60 calls @ $0.70
Sold $DUST Oct 28 50 calls @ .35.
BTO DUST shares @ 41.66, STO DUST 28oct16 42 call @ 2.20, STO DUST 28oct16 42 put @ 2.50. Never traded this before. Call me crazy. Don’t follow unless Iceman gives me his blessing. Any thoughts or better ways I could have gotten involved welcome. Guess I should have asked that before jumping!
#ContangoETFs Sold to Open DUST Nov 18th 55 call for 1.70. Orders in for a couple others.
Sold $DUST Dec 16 70 calls @ 2.00. Highest strike.
$NUGT #CoveredCalls #Weeklys – Sold NUGT OCT 28 2016 16.0 Calls @ 0.40
$DUST #ShortPuts #Weeklys #OptionLadder – this worked last week and it should work this week too.
Sold DUST (Weekly) Oct 28 2016 33 Puts @ 0.60
Sold DUST (Weekly) Oct 28 2016 32.5 Puts @ 0.45
Sold DUST (Weekly) Oct 28 2016 32 Puts @ 0.40
STO Nov 4 $50 calls @ $0.75
A lot of my positions are now off the board. Being cautious. I am old.
Thanks for this terrific support resource.
Expirations Full Profit
$ADP 90 call (Covered)
$FIT 16 call (covered)
$UVXY 19 call
$ETE 15 put
$FANG 95 put
$NFLX 85 put
$NUGT 12 put
$DUST 35 put
$FB 120/125 BUPS
$GOOGL 780/790 BUPS
$WYNN 90/95 BUPS
$NFLX 85/90 BUPS
$NFLX 113/118 BUPS
Closed Early
$LULU 60/65 BUPS @ 39% of the maximum loss
$SPX 11/4 2240/2215 BECS @ 91% profit
Total Loss
$NFLX 123/118 BECS (part of iron condor with 113/118 BUPS)
$TWLO 55/60 BUPS
Assignments
$OPHT @ 45 Basis 42
$GIMO @ 52.5 Basis 49.90
$ETP Assigned the 37 put even though stock closed at 37.01. Penny rule anyone?
#OptionsExpiration for 10/21
Expirations:
$AMZN 10/21/2016 860.00 calls (covered)
$APA 10/21/2016 62.50 calls (covered)
$CYBR 10/21/2016 55.00 calls (covered)
$DUST 10/21/2016 60.00 calls
$DUST 10/21/2016 32.0 puts
$DUST 10/21/2016 34.50 puts
$DUST 10/21/2016 35.50 puts
$FIT 10/21/2016 15.00 calls (covered)
$MBLY 10/21/2016 44.00 calls (covered)
$SVXY 10/21/2016 60.00 puts
$SWN 10/21/2016 14.00 calls (covered)
$TWTR 10/21/2016 19.00 calls (covered)
$UVXY 10/21/2016 27.00 calls
$UVXY 10/21/2016 55.00 calls
$WFM 10/21/2016 27.00 calls
$WHR 10/21/2016 150.00 puts
$X 10/21/2016 20.00 calls (covered)
Assignments:
$DVN 10/21/2016 40.00 calls–long stock getting called away
$WYNN 10/21/2016 100 puts–short stock getting called away
Have a great weekend everyone.
— Expiring —
AVGO 175 covered call
DUST 60 call
FB 126 covered put
ISRG 650/600 put spreads
NFLX 85 puts
NFLX 120 puts
NUGT 25 call
RGLD 82.5 and 85 covered calls
— Expiring with full loss —
TLT 140 long calls
BTC UVXY Nov04’16 25 CALL @ 0.10, sold for 1.55 on 9/27/16.
Rolled NUGT 21oct16 18 puts to NUGT 28oct16 16 puts (doubled position) for 0.30 credit
Plenty of time to sell these again so not even messing with it. I’ll look to get back in if this bounce follows through.
Bought to Close DUST DEC 16 2016 60.0/70.0 Bear call spreads @ .97 (sold for 2.05)
$DUST #ShortCalls #Rollup – doing a second or third rollup on this stock
Bought to close DUST Oct 21 2016 34.0 Calls @ 4.63 – originally sold at 6.10
Sold DUST Nov 11 2016 37.0 Calls @ 5.40
$NUGT follow-up on buy write when calculated >3% ROI on weekly position of nearest OTM call. I have observed it is unlikely to work out as planned – call expires and stock has declined more than premium gained.
Wed I sold $NUGT Oct 21 $15 Call and bought stock net $14.25, gain$ 0.75 for ROI 5.25%. Thurs stock rolled over, I had stop at 14.48 just below pivot point, sold. Thurs I watched as price bounced around approaching 15 but not crossing. The 20 sma was declining below 15 yesterday and today the option price dropped from .48 (sold) to .20 start of today, and dropping until I closed for $0.05. No worries if prices move erratically this afternoon.
I think in the future I will calculate ROI and if >5% I will sell BeCS to minimize capital involved and maximize premium by allowing closer to ITM call sales.
I’m really surprised at how low the $VIX and $VXX instruments are given how weak the market has been acting and how bad the charts of the indexes look. Still a pretty healthy contango in the $VIX futures curve driving $UVXY lower and $SVXY grinding higher. $SPX is below yesterday’s low, yet $UVXY is well below yesterday’s high.
STO 60/70 December 16, bear call spread @0.90 cents
Sold
$SPX 11/18 2250/2225 BECS @ 1.10
$SPX 11/4 2210/2185 BECS @ 2.05
$SPX 11/18 1935/1960 BUPS @ 1.50
$NFLX 11/18 135/130 BECS @ .90
BTO $BAC 1/20/2017 16 call @ 1.12
STO $DUST 10/21 puts @ .45
STO $NFLX IC 113/118/123/118 @2.65
Thanks to all for input
STO November 25, 55/65 bear call spread @0.90 cents.
covered call sold yesterday – stopped out of stock at 14.48, 0.25 loss on stock but potential 0.48 profit on option. I’ll put in offer for day buy to close at 0.05, still profitable. I thought the >3% profit on weekly was too rich.
$DUST #ShortCalls – Sold DUST Oct 21 2016 45.0 Calls @ 0.15.
Sold these before the bid disappeared. These expire Friday
IC from yesterday 51/48/39/36 for 0.90, well price opened 38.40 falling fast. I closed the put side for a $1 loss. If the call side expires I’ll only loose 0.10. I needed a backup plan when I couldn’t simply short the DUST – none available.
sold covered call Oct 21 $15 call, net 14.25, yielding 5.26%, if it works out. I have begun to notice any of these weekly covered calls yielding over 3% seldom (never) work out – and the price falls more than the premium. I am trying another strategy: enter the trade and set a stop on security just below likely support, 0.10 to 0.20 below current price. I’ll let you know how it plays out.
$DUST #ShortPuts – Sold DUST Oct 21 2016 32.0 Puts @ 0.20 with the stock at 37.0.
These expire Friday
$DUST #ShortPuts #OptionLadder – DUST falls, NUGT rises. My NUGT stock position is now above the strike 14 covered calls I sold last Friday and my NUGT 12, 12.5 and 13.5 short Puts for this week are out of the money.
I like where it’s sitting now so I sold the following for Friday’s expiration.
Sold DUST Oct 21 2016 35.0 Puts @ 0.40 adding to my position
Sold DUST Oct 21 2016 34.0 Puts @ 0.25
Sold DUST Oct 21 2016 33.5 Puts @ 0.20
Sold DUST Oct 21 2016 33.0 Puts @ 0.20
$NUGT #ShortCalls Sold $NUGT Jan 19 2018 52 calls @ 2.50. Highest strike.
Trying and iron condor expiring this Friday 51/48/39/36 for 0.90, I may short to cover if price continues toward 39.
$DUST #ShortPuts #OptionLadder – Sold DUST OCT 21 2016 34.5 Puts @ 0.20 with the stock at 41.31
These expire Friday
$DUST #ShortPuts – Sold DUST OCT 21 2016 35.0 Puts @ 0.20 with the stock at 41.24
These expire Friday
Sold $NUGT Jan 20 2017 24.00 calls @ 1.00
$DUST #ShortPuts – Sold DUST OCT 21 2016 35.5 Puts @ 0.20
These expire Friday
$DUST #ShortPuts – Sold DUST Oct 21 2016 36.0 Puts @ 0.20 with the stock at 45.32
$DUST #ShortPuts – Sold these this morning. Since I am also short NUGT Puts, these are protecting each other.
Sold DUST Oct 21 2016 38.0 Puts @ 0.40
Sold DUST Oct 21 2016 36.5 Puts @ 0.20
Assigned 100 shares of NUGT last night from a 17 put, had a short 17 call expire
Alls I gots expiring is the DUST 55 call. Have a great weekend everyone!
#OptionsExpiration #Weeklys #Oct14 – An unusually quiet week. No Assignments this week and 3 sets of SVXY Calls expired (that’s unusual).
The October monthly expiration next week is a big one.
— Expirations —
DUST (Weekly) Oct 14 2016 61 Calls
MYL (Weekly) Oct 14 2016 45 Calls (Covered)
NUGT (Weekly) Oct 14 2016 10 Puts
NUGT (Weekly) Oct 14 2016 11 Puts
NUGT (Weekly) Oct 14 2016 14 Calls (Covered)
SVXY (Weekly) Oct 14 2016 74 Calls (Covered)
SVXY (Weekly) Oct 14 2016 76 Calls (Covered)
SVXY (Weekly) Oct 14 2016 85 Calls (Covered)
UVXY (Weekly) Oct 14 2016 21 Calls
UVXY (Weekly) Oct 14 2016 21.5 Calls
UVXY (Weekly) Oct 14 2016 22 Calls
UVXY (Weekly) Oct 14 2016 22.5 Calls
UVXY (Weekly) Oct 14 2016 23 Calls
UVXY (Weekly) Oct 14 2016 23.5 Calls
UVXY (Weekly) Oct 14 2016 24 Calls
UVXY (Weekly) Oct 14 2016 24.5 Calls
UVXY (Weekly) Oct 14 2016 25 Calls
UVXY (Weekly) Oct 14 2016 25.5 Calls
UVXY (Weekly) Oct 14 2016 26 Calls
UVXY (Weekly) Oct 14 2016 26.5 Calls
UVXY (Weekly) Oct 14 2016 40 Calls
UVXY (Weekly) Oct 14 2016 45 Calls
$NUGT #CoveredCalls – since my calls for this week are about to expire, I sold the same strike price for next week.
Sold NUGT Oct 21 2016 14.0 Calls @ 0.35
$NUGT #ShortPuts – NUGT has been all over today. Sold Puts for next week and then later covered some of this week’s exposure.
Sold NUGT Oct 21 2016 10.5 Puts @ 0.25
Bought to close NUGT Oct 14 2016 13.5 Calls @ 0.80. Originally sold @ 0.85
$NUGT #ShortPuts – Sold NUGT OCT 21 2016 10.5 Puts @ 0.19.
$NUGT #ShortPuts – Sold NUGT Oct 21 2016 11.0 Puts @ 0.25
$NUGT #ShortPuts – Bought to close NUGT Oct 14 2016 12.0 Puts @ 0.05.
They can’t go any lower and I’m free to sell Puts for the following week.
Some of these were “rolled into” when I covered short 13.0 puts last Friday
STO $SPX 11/11 1965/1990 BUPS @ 1.35
STO $UVXY 10/21 19 calls @ .38
STO $LOCK 11/18/ $17 straddle
BTO $FB 11/18 130 call
Closed Early
$SPX 11/4 2260/2235 BECS @ 81% profit
$SPX 10/21 2250/2225 BECS @ 92% profit
$NFLX 10/21 95 call @ 10.35 STO @ 8
Rolled
$NUGT 10/21 18 put to 10/28 19 put for 1.01 added profit (But gold must go UP) or roll we must
TDA has removed this ticker from portfolio margin calculations so naked is way too risky for me now. I’ll spread it and give it plenty of time…and staying small enough to be able to widen and add for a credit roll if this thing gets way in the money.
Sold DUST DEC 16 2016 60.0/70.0 Bear call spreads @ 2.05
Sold $DUST Nov 4 70 calls @ 2.00
$DUST STO Oct 14 $50 call for $2.60 half an hour ago, covered.
$DUST #ShortCalls – Sold DUST Oct 14 2016 61.0 Calls @ 0.40. These expire in 4 days
#ContangoETFs Sold to Open $DUST Oct 14th 55 call for 1.25. Expires this Friday.
Sold $DUST Nov 18 70 calls @ 3.20. Highest strike in Nov.
$SVXY 45 put
Closed Early 10/7
BTC $NFLX 110 call @ 3.98 Sold @ 1.66 as part of strangle with 85 put
BTC $NUGT 1/20/2017 37 call @ 4.00. Sold @ 23.50 6/29
Assigned $ULTA @ 240 from 235.240 BUPS expiring while I was not WATCHING
Trades 10/7
STO $SVXY 1/20/2017 45 put @ 2.20
STO $SPX 10/28 2225/2200 BECS @ 3.80
STO $SPX 11/4 2240/2215 BECS @ 1.60
–Expiring–
$FB 125 covered put
$NUGT 23 and 30 calls
$SPX 2190/2215 call spreads, sold last Friday for 3.50
#OptionsExpiration for Oct 7
Only 2 expirations today:
$DUST 10/07/2016 60.00 calls
$UVXY 10/07/2016 40.00 calls
No assignments.
#OptionsExpiration #Weeklys #Oct07 – another profitable week except for some $NUGT puts I had to roll at the last minute.
I’m choosing to let some of my $SVXY stock go partly because it’s still my biggest long position and partly because of the high premium received when selling the calls. The premium now becomes part of my long term capital gain on the stock.
— Expirations —
CF (Weekly) Oct 7 2016 30 Calls (Covered)
FCX (Weekly) Oct 7 2016 9.5 Puts
NUGT (Weekly) Oct 7 2016 11 Puts
SVXY (Weekly) Oct 7 2016 40 Puts
SVXY (Weekly) Oct 7 2016 75 Calls (Covered)
SVXY (Weekly) Oct 7 2016 80 Calls (Covered)
UVXY (Weekly) Oct 7 2016 23 Calls
UVXY (Weekly) Oct 7 2016 23.5 Calls
UVXY (Weekly) Oct 7 2016 26.5 Calls
UVXY (Weekly) Oct 7 2016 27 Calls
UVXY (Weekly) Oct 7 2016 27.5 Calls
UVXY (Weekly) Oct 7 2016 28 Calls
UVXY (Weekly) Oct 7 2016 28.5 Calls
UVXY (Weekly) Oct 7 2016 30 Calls
UVXY (Weekly) Oct 7 2016 40 Calls
— Assignments —
NUGT (Weekly) Oct 7 2016 13 Puts
NUGT (Weekly) Oct 7 2016 16 Puts
SVXY (Weekly) Oct 7 2016 64 Calls (Covered)
$NUGT #CoveredCalls = Sold NUGT Oct 14 2016 14.0 Calls @ 0.25 against stock I’m choosing to acquire via some strike 13 Puts this afternoon.
$GLD and $GDX are now both up slightly on the day.
$DUST #ShortCalls #LEAPS- Sold DUST2 (20 sh contract) Jan 19 2018 30.0 Calls @ 2.00.
Thanks Ramie for the idea.
$NUGT #ShortPuts #RollOut #IRA – Another roll
Bought to close NUGT Oct 7 2016 12.0 Puts @ 0.05 – covered since they went in the money today
Sold NUGT Oct 14 2016 10.5 Puts @ 0.25
$NUGT #ShortPuts #RollOut #IRA – started the process of rolling out my NUGT puts expiring today
Bought to close NUGT Oct 7 2016 13.0 Puts/Sold NUGT Oct 14 2016 12.0 Puts for a 0.10 Credit.
Added a week to my holding period but gained a point on the strike price plus a little cash.
Options Bistro 