#coveredcalls
$NUGT BTC 9/18 100 calls and STO 9/26 105 calls at .15 debit. Been rolling this longer then the miller’s daughter in Rumpelstiltskin has been spinning gold from hair.
#shortputs
$VXX STO 9/11 26 put at .25. Thank you @optioniceman for reminding to sell against the long $VXX pyt.
#Earnings $RH reports tonight. Below are details on earnings one-day moves over the last 12 quarters.
June 4, 2020 AC -0.88%
March 30, 2020 AC -14.85%
Dec. 4, 2019 AC +13.39%
Sept. 10, 2019 AC +5.07%
June 12, 2019 AC +15.82%
March 28, 2019 AC -21.96% Biggest DOWN
Dec. 3, 2018 AC +10.90%
Sept. 4, 2018 AC -13.06%
June 11, 2018 AC +30.54%
March 27, 2018 AC +22.48%
Dec. 5, 2017 AC +0.79%
Sept. 6, 2017 AC +44.75% Biggest UP
Avg (+ or -) 16.21%
Bias 7.75%, positive bias on earnings.
With stock at 320.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 279.63 to 360.37 (+/- 12.6%)
Based on AVERAGE one-day move over last 12 quarters: 268.14 to 371.86
Based on MAXIMUM one-day move over last 12 Q’s (44.8%): 176.80 to 463.20
Based on DOWN max only (-22.0%): 249.73
Open to requests for other symbols.
TRADES: When I trade high priced stocks over $100.00, I trade in increments of 25 shares.
VMW BTO STOCK @136.89
WKHS STO 9/11/20 25.0 CALLS @1.07
AAPL BTO STOCK @116.96, 116.60, 116.40, 117.32,117.72 Method not for everybody,works4me.
WKHS STO 9/18/20 30.0 CALLS @.90
#ShortPuts – Not quite half but I’ll take it for one day.
Bought to Close TQQQ OCT 2 2020 85.0 Put @ 1.95 (sold yesterday for 3.45)
Adding one more:
Bought to open WBA 10/23/2020 30.0 Puts / Sold WBA 09/11/2020 35.50 Puts @ 0.17 Credit
#ShortPuts – Jumping back in for a quickie…
Sold DOCU SEP 25 2020 177.5 Put @ 2.50
#SPX1dte BTC $SPX Sept 9th 3200 puts for .15. Condors sold yesterday for 1.15.
Sold 1 VXX 09/11/2020 26.0 Put @ 0.37
plus:
VXX Diagonal Calendar Put
I’m adding a new long in a new expiration month with this spread
Bought to open VXX 03/19/2021 14.0 Puts / Sold VXX 09/11/2020 27.0 Puts @ 0.12 Credit.
#ShortStrangles – After earnings short term strangle…
Sold LULU SEP 18 2020 300.0/380.0 Strangle @ 4.60
Mirror image of last week.
SPY down
VIX Down
#SPX1dte Sold to Open $SPX Sept 9th 3180/3200-3440/3460 condors for 1.15, IV 31.32%, SPX 3343, deltas -.05,+.06.
Today’s condor: closed put side for .10, remainder expires.
#earnings #ironcondor LULU
It took a few tries at different prices and expirations throughout the day
Sold Oct. 16, 280/290/430/440 for 2.66
Thanks for the data Jeff
#tastytradefollow
With the stock looking weak and a decisive break below the 200 day moving average, this wouldn’t be the ideal day (at least technically) to sell puts and take a bullish position. But I am looking to potentially acquire this stock below 50 and this put sale will allow me to do that if it continues down more than another 10% at expiration. As of now it’s down almost 9% today, almost 15% over the last 4 trading days and around 20% from its intraday high on 8/14.
Sold $AMAT 10/16 50 puts @ 1.60. Delta 25. IV rank 34.
Sold 1 VXX 09/11/2020 27.0 Put @ 0.58
Sold VXX 09/11/2020 26.50 Puts @ 0.39
Sold these against existing long puts in 2021 and 2022
#ShortPuts – Small hedge for quite a few longs next week…
Sold VXX SEP 11 2020 27.0 Puts @ .61
Even though I have a boatload of long (Fully paid for) Puts for 2021 and 2022 I’m adding a new long with this spread
Bought to open VXX 01/15/2021 17.0 Puts / Sold VXX 09/11/2020 27.50 Puts @ 0.03 Credit.
This puts my VXX Short Strangle positions more in balance for the coming week
#SPX1dte BTC $SPX Sept 8th 3260 puts for .10. Condors sold for 1.25 on Friday.
I will be selling a new one for tomorrow’s expiration.
Sold 1 KSS 10/16/2020 25.0 Covered Call @ 1.09
Bought to open AAL 10/16/2020 23.0 Calls / Sold AAL 09/11/2020 14.50 Calls @ 0.03 Credit.
Also sold 1 AAL 09/11/2020 14.50 Covered Call @ 0.25, replacing the strike 14 call from last week.
#Earnings $LULU reports tonight. Below are details on earnings one-day moves over the last 12 quarters.
June 11, 2020 AC -3.81%
March 26, 2020 AC -5.95%
Dec. 11, 2019 AC -3.73%
Sept. 5, 2019 AC +7.81%
June 12, 2019 AC +2.12%
March 27, 2019 AC +14.12%
Dec. 6, 2018 AC -13.36% Biggest DOWN
Aug. 30, 2018 AC +13.08%
May 31, 2018 AC +16.31% Biggest UP
March 27, 2018 AC +9.21%
Dec. 6, 2017 AC +6.42%
Aug. 31, 2017 AC +7.19%
Avg (+ or -) 8.59%
Bias 4.12%, strongly positive bias on earnings.
With stock at 360.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 320.79 to 399.21 (+/- 10.9%)
Based on AVERAGE one-day move over last 12 quarters: 329.07 to 390.93
Based on MAXIMUM one-day move over last 12 Q’s (16.3%): 301.28 to 418.72
Based on DOWN max only (-13.4%): 311.90
NOTE: Max 5-day moves are -11.1% and +18.1%, so slightly more bullish than 1-day.
Open to requests for other symbols.
#SPX7dteLong Bought to Open $SPX Sept 14th 3340/3360-3370/3390 condors for 18.25, with SPX at 3367.
#coveredcalls WBA M
Replacing a couple expirations
WBA sold Sept. 18, 39 call for .18
M sold Sept. 18, 8 call for .17
Bought to open WBA 10/16/2020 30.0 Puts / Sold WBA 09/11/2020 36.0 Puts @ 0.12 Credit
Bought to open WBA 10/23/2020 30.0 Puts / Sold WBA 09/18/2020 35.50 Puts @ 0.16 Credit
The stock is 36.61 with the Low YTD of 36.50 and a big dividend yield. I’m hoping it holds here in a weak market.
#ShortPuts – Let’s see if it can take out all the major moving averages…
Sold TQQQ OCT 2 2020 85.0 Put @ 3.45
I’m no longer going to use Options Bistro to post my podcast, “The Pick,” but that won’t stop me from shameless self promotion. I’ve added a section for my podcast at the bottom of the right hand column. It will display the three latest posts, and clicking on any of them will connect to the website where you can link to the episodes, videos, and other information about the show.
This podcast s NOT about trading, but rather music and entertainment. I hope you listen and enjoy!
Hi Everyone! Big winter storm bearing down on us here in Denver. The last time I remember a snow on Sep 8 was about 22 years ago, I was working for a dot-com startup that went public with a billion $ and lost it all. Another thing that happened over 20 years ago was that I was a subscriber to Power Options. I know that because I purchased a course from them a couple weeks ago and had to update my address on the platform….an address over 20 years old in the pacific northwest.
So, I just love collars, and have found several different ways to structure them, as you know. But….I can’t even begin to tally up the amount of $$$ I lost on the collar ceilings in the last quarter. TSLA, AAPL, NVDA, PTON, ROKU, even JNJ. I stumbled onto “The Blueprint” course at Power Options and decided to take the plunge. It’s $339 I think. I am super enjoying the course though, well worth the money. There is so much nuance and depth to collar structures—one might think them simple, pedestrian–but there are layers and layers of beautiful complexity to them. This one (Blueprint) uses very long term (5+ months) and very DITM puts for the married put portion. (Think, a long term $120 put on a $100 stock guarantees a $120 sell price—the only risk in the position is the extrinsic above the strike. The positions start off with no ceiling limitations, just significant downside protection from a higher stock price). Then they have 12 various income methods to cover that extrinsic risk, thus yielding a “bulletproof” position. The income methods—some are obvious, but many are VERY unique in the management of this type of position. Then the course originator (Radioactive Trading, which has partnered w/ Power Options) has hours and hours of highly informative webinars that further train and explain application of the income methods.
Power Options has developed into a pretty robust scanning platform. They have a cool list for covered calls called the “7/11” list. The companies on the scan provide covered call ops with at least 7% return on assignment and at least 11% downside protection. I started using the 7/11 list for collar candidates. WKHS, posted by @honkhonk81 this week is on the list, so I put a collar on it this week.
Along w/ purchasing the Blueprint course Power Options gave me 6 weeks of free trial.
Geez, I know this sounds like an advertisement, but NO affiliation, not looking for any referral credits here….just passing along a good thing, worth the price. The Radioactive Trading site probably has free videos to review if interested.
Sue
BTC EWZ Sep 04 $30.5 call @ $1.01 (sold for $0.89);
0.5 x EWZ Sep 04 $30.5 put expired worthless (sold for @ $0.51)
0.5 x EWZ Sep 04 $30.0 put expired worthless (sold for @ $0.58)
STO EWZ Sep 11 $31 straddle @ $1.65
Cover is EWZ Jan 2022 long strangle $27 call / $37 put – which is showing a small profit.
IBB @ $129.28
BTC Sep 04: $133 straddle for $5.63 (originally sold for $3.94).
STO Sep 11: $130 call @ $1.15
STO Oct 02 : $130 put @ $5.73
Cover is IBB Jan 2022 : long strangle $115 call / $150 put @ $53.74
WKHS The volatility seems to be high, as evidenced by the nice premiums. Is there a reason for this? Also the stock, IMO, has low entry costs. IMO an ideal stock to trade for me, a seller of call premium.
EXPIRATION FRIDAY, 9/4/20, Expired worthless, all uncovered unless marked by **.
VMW 150.0 CALL STO @1.85
VIAC 29.0 CALLS STO.50
OSTK 105.0 CALL STO 5.00
MS 54.0 CALLS STO .52 **
KODK 6.0 PUTS STO .70
CZR 45.0 PUTS STO .85
CZR 51.0 CALLS STO .90
AAL 14.5 CALLS STO ..31
#SPX1dte Sold to Open $SPX Sept 8th 3240/3260-3545/3565 condors for 1.25, IV 22.38%, SPX 3431, deltas -.07,+.06. Bit nervous with the three day weekend, but strikes are decently OTM.
Bought to close WDC 09/04/2020 38.0 Covered Calls / Sold WDC 09/11/2020 40.0 Covered Calls @ 0.02 Credit plus and extra $2 on the short strike.
Since this was stock put to me after a disastrous earnings trade, they can have my stock next week..
Meanwhile the strike 37.0 puts I also sold as part of earnings week will expire today.
Yay!
Wow
Jekyll and Hyde market here.
Selling calls earlier, now puts
Sold VXX 09/11/2020 27.0 Put @ 0.48
Sold VXX 09/11/2020 26.50 Puts @ 0.33
Sold VXX 09/11/2020 26.00 Puts @ 0.22
#ShortPuts – Over 50 percent in a few hours…gotta take it.
Bought to Close SPY SEP 18 2020 310.0 Put @ 1.20 (sold for 2.60)
Bought to close 1 VXX SEP 04 20 $32 Call @ 0.01.
Sold @ 0.33 on 8/31
#SPX7dteLong Sold to close $SPX Sept 4th 3500/3480 put spreads for 19.25. Condors bought on Monday for 15.90. There looks to be a small chance of a rally to 3480, so not risking it. Now I’m rooting for it so I can make some money on my call side.
Also, super proud for shorting the market near the low today. But I still actually think that will be a winner next week.
Some more VXX Diagonal rolls
Bought to close 1 VXX 09/04/2020 28.00 Diagonal Call / Sold 1 VXX 09/11/2020 29.50 Diagonal Call @ 0.12 Credit plus 1.50 higher on the short strike
Bought to close VXX 09/04/2020 27.00 Diagonal Call / Sold VXX 09/11/2020 28.0 Diagonal Call @ 0.22 Credit plus 1.00 higher on the short strike.
I still have VXX 30.50, 31.0 and 32.0 short calls that should expire in an hour if I don’t cover them.
CC STO 9/11/20 22.0 NTM PUTS @1.33
Bought to close ADS 09/04/2020 51.0 Covered Call / Sold 1 ADS 09/11/2020 51.0 Covered Call @ 0.50 Credit
Bought to close ADS 09/04/2020 51.0 Covered Calls / Sold ADS 09/11/2020 51.0 Covered Calls @ 0.65 Credit (different account)
Bought to close ADS 09/04/2020 50.0 Covered Calls / Sold 1 ADS 09/11/2020 52.0 Covered Calls @ 0.38 Credit
Link to Calendar: https://research.investors.com/economic-calendar/
#ShortPuts – Stopped out of my overnight scalp at even. Added these though…
Sold UVXY SEP 11 2020 24.0 Puts @ .83 and .90
Sold to open $LABU 10/16 30 puts @ 2.00. Lowest strike in 10/16. 16 delta.
Bought to close KSS 09/04/2020 23.0 Calls / Sold KSS 09/11/2020 23.50 Calls @ 0.32 Credit plus an extra 0.50 on the strike price.
Bought to close KSS 09/04/2020 24.0 Calls / Sold KSS 09/11/2020 24.00 Calls @ 0.27 Credit
Bought to Open VIAC Oct 16 2020 33 Calls / Sold to Open VIAC Sep 11 2020 29 Calls @ Net Credit of $0.09.
I’m long excess September 32.50 Calls from earlier spreads but they expire in 2 weeks and I want to sell them soon.
The high for this move since earnings is 29.02 set yesterday morning.
Bought to close VXX 09/04/2020 30.0 Diagonal Calls / Sold VXX 09/11/2020 34.0 Diagonal Calls @ 0.22 Credit.
Added 4 BIG points to the short strike
Since this was my biggest short call position I’m just playing it safe.
I have other calls short today with higher strikes (and some lower) that I will monitor until 3:45
All is forgiven. Nothing to see here.
VIX drops from 38.28 to 32.28 in less than 2 hours and is down 4% from yesterday’s close.
#SPX1dte Sold to Open $SPX Sept 11th 3200/3220 call spreads for 17.25, when SPX was at 3370. Betting on more downside. Risking 2.75.
$ROKU looks to be bouncing off the 50 day moving average. Sold 10/16 140/130 bull put spread @ 2.80. Short strike 27 delta. IV rank 37. Stock trading around 159-160.
Rolled $NFLX Sep-04-2020 490/500 #BuPS // Sep-11-2020 @0.50 Credit.
STO Sep-11-2020 14 #CoveredCalls @0.34
Holding for expire Sep-04-2020 14 #ShortCalls
#ShortPuts – Gotta take a shot at the 200ma bounce.
Sold SPY Sep 18 2020 310.0 Put @ 2.60
Sold more VXX 09/18/2020 80.0 Calls @ 0.42 against long November calls
#ShortPuts #Earnings #CoveredCalls – A few this morning…
DOCU: Earnings booking it for safety.
Bought to Close DOCU SEP 18 2020 190.0 Put @ 2.60 (sold for 3.34)
NFLX: Short strangle rolling call down for extra credit.
Rolled NFLX SEP 18 2020 640.0 Call to NFLX SEP 18 2020 600.0 Call @ 1.25 credit (6.65 total now)
OSTK: Will be assigned 100 shares. Got an early start on covered calls right at the open.
Sold OSTK SEP 11 2020 70.0 Call @ 7.50
SLB: Covered rolling.
Rolled SLB SEP 4 2020 19.0 Calls to SEP 18 2020 19.0 Calls @ .48 credit
STX: Covered rolling.
Rolled STX SEP 4 2020 46.0 Calls to SEP 11 2020 46.5 Calls @ .15 credit
TNA: Booking for safety.
Bought to Close TNA SEP 18 2020 27.0 Put @ .64 (sold for .90)
Bought to Close TNA SEP 18 2020 28.0 Put @ .85 (sold for 1.08)
UVXY: Replacing some closed yesterday.
Sold UVXY SEP 11 2020 24.5 Puts @ 1.10
Bought to close 5 TSLA Sep 04 2020 560 Calls Limit at $0.01 to release margin for other trades.
It won’t trade any lower.
This was the short side of a single 2800/3000 Bear Call Spread sold last Friday @ 7.60
Playing the eventual contango loss in VXX over time.
First trade in this expiration – a year out – 378 DTE
Bought 1 VXX SEP 17 2021 $10 PUT @ 0.70
#Jobs — increase meets expectation, while UE rate falls more than expected
Gain of +1,371,000 non-farm payroll jobs, vs. expected 1.32M gain
Unemployment at 8.4%, down by 1.8%, vs. expected 9.8%
U6 unemployment at 14.3%, down by 2.3%
Labor force participation 61.7%, up by 0.3
Average hourly earnings up 0.4%, up by 0.2
July jobs revised down by -29K to +1.734M
June jobs revised down by -10K to +4.781M
#VIXIndicator A double warning today as $VIX closed up over 25% from yesterday’s close and is also up over 50% from the August 11th VIX low. Expect lower markets in the coming days or weeks.
#ShortPuts – This might get volatility to come down a little. Going for one night scalp…roll if needed.
Sold UVXY SEP 4 2020 26.0 Puts @ .21
Bought back half of my AAL 09/04/2020 15.50 Diagonal Calls @ 0.01 to release a bit of margin.
They won’t trade any lower.
Just to force me to stay long and not bail too soon:
Liquidated my long VXX September 18 2020 80.0 Calls and also shorted them @ 0.25.
Sold against long October and November 70.0 Calls so no upside risk.
#Earnings Unless it rallies tomorrow, looks like $CRWD will be a bust, but it was sold ITM so I knew the risk…
BTC $FIVE Sept 4th 112 puts for .05. Will let the call side wait for tomorrow.
#ShortPuts – A couple of my bigger positions so have to take the one day gains. Looking for a re-entry on any decent drop.
Bought to Close UVXY SEP 11 2020 21.5 Puts @ .19 (sold for 1.17)
Bought to Close UVXY SEP 11 2020 22.0 Puts @ .25 (sold for 1.16)
Not much green here
Semis and software groups are the leading losers.
NO new lows in the SP500 yet so no #FallingKnife candidates today
https://www.finviz.com/map.ashx?t=sec
Sold $AMD 10/16 65/110 strangle @ 3.42.
#TastyTradeFollow
Probably a nice bounce if it gets here
@DAN is right is will be the 3rd day down (ie: Tuesday)
#SPX7dteLong Bought to Open $SPX Sept 9th 3460/3480-3490/3510 condors for 17.20, with SPX at 3480.
Also, yesterday: Sept 2nd 3490/3510 call spreads expired ITM for max credit of 20.00. Condors bought last Thursday for 16.45.
Bought to Close 1 Contract SQQQ Sep 04 2020 19 Put @ $0.01. It won’t trade any lower.
Sold earlier this week @ 0.22
Sold $CRWD 9/18 110/115/145/150 iron condor @ 1.40.
#vxxgame
SOLD -1 VXX 20 NOV 20 65 CALL @2.76
had bto @ .92 on 8/13/20
Sold $AAPL 10/16 115/100 bull put spread @ 1.15. Short puts 24 delta. IV rank 55.
WKHS STO 9/11/20 20.0 CALLS @.73
THC STO 9/11/20 29.0 ATM CALLS @1.12
WKHS STO 9/11/12 16.5 PUT @.60
Thursday’s levels to watch: The Upside Warning will be canceled with an intraday VIX high of 30.42.
WE ARE THERE 🙂
Good time to have 10 excess long calls in VXX
VIX has spiked over 50% higher than its recent low.
Options Bistro 