@hcgdavis Chris, what are the…

@hcgdavis
Chris, what are the current hedges you have on?
Can you please share some examples?

Rolling IRBT

Continuing to extend the trade and lower basis–rolled my now short 6/21 92.50 puts to 7/19 90 puts @ .25 credit, and 6/21 95 calls to 7/19 95 calls @ 1.60 credit. I looked at using the #lizardpies strategy described by @hcgdavis but for this one the strike availability didn’t allow it (they’re 5 points wide in July right now and I couldn’t get more than 5.00 credit anywhere). Will look at on my next rollout.

Total premium taken in now 7.08 so my breakevens have been lowered (helped by being able to move the put strike down for a credit). Downside breakeven 82.92, upside breakeven 102.08.

IRBT / GOOGL Adventure / SPX1DTE / LABU CVX Short Calls SFIX Expired / FB Assigned/ KNX SQ Short Puts

#bups
$IRBT BTC 5/3 98/102 BUPS for .20. STO at 1.35.
$IRBT STO 5/10 95/100 BUPS for 1.00
$IRBT STO 5/10 100105 BUPS for 2.05 You rock @honkhonk81

$GOOGL Misadventure
Assigned this morning stock $2000 (Yikes) Fortunately stock had a good day and I could close
the 5/3 1190/2000 BUPS at .50 per contract less than a total loss. Sold on 4/30

#spx1dte
$SPX 5/3 2850/2870/2945/2965 will show 90% of profit as market closed finally. Thank you @jeffcp66

#shortcalls
$CVX STO 5/10 119 call at .78. Sold against 5/17 long 125 calls. The 5/3 120 calls expired. Sold for 1.52. If this expires the losing trade (so far) of the long call will be reduced by 2.30. They were bought for $3. And another week possible.
$LABU BTC 5/3 50 call and STO 5/10 51 call at 1.45 added credit (Covered) Thank you @hcgdavis.

#optionsexpiration
$SFIX 28 call (covered)

#assignment
$FB 195 calls

#shortputs
$KNX STO 6/21 30 put at .80
$SQ STO 6/21 65 put at 1.82 Thank you @thomberg1201

SPX 2dte makes another appearance

STO SPX Mar6 BeCS 2820/2825 @ .30 x4
BTC SPX Mar6 BuPS 2740/2735 @ .05 x4. Sold @ .30. Profit $100
STO SPX Mar6 BeCS 2820/2825 @ .25 x4
STO SPX Mar6 BuPS 2760/2755 @ .25×4
Full position on for this round.

I was planning to pause on the ICs due to low vol. Then the low vol went poof. Also, you could say that @hcgdavis made me do it.:-)
#spx1dte

#jadelizards, #lizardpies, #pietrades, #spikedjadelizard, #spycraft

MNST double double calendar

Out for flat minus commissions. BTO @ .40. STC @ .40
#dubdubcal

Defending ICs

@hcgdavis is so good to recap his trading strats and share lessons learned. I’m going to try to follow his example here.

Over the last six weeks or so, I’ve traded multiple SPY/SPX ICs using different time frames. It’s a given that defense is absolutely necessary to survive. However, defending too early robs you of potential profits more often than not. Although it will be more expensive, I’ve decided not to defend ICs anymore unless the short strikes are breached. Expensive defense 10% of the time is cheaper than inexpensive defense 40% of the time. If you’re selling spreads outside 1sd, most of them are going to be safe.
#IC_Defense

#spycraft

SPY 21dte ladder

Sold SPY Feb15 255/253 BuPS @ .20 x2 to start third step of SPY 21dte IC ladder strat. Will add call side before the close.
Sold SPY Feb15 276/278 BeCS @ .24 x2 to complete the IC.
#spycraft

SPX 1dte picture perfect

SPX Jan23 IC 2595/2600/2680/2685 Put/Call expired. Sold 6 lots at .45 yesterday, 4 in one account and 2 in another. After two harrowing days of defending ICs that breached or nearly breached the short side, today’s closing risk profile was gratifying.
spx 1dte jan23
#spx1dte

SPX 1dte fly defense worked

Closed my SPX Jan22 2620/2625/2630 put flies (defense position from IC) one account for $1240 profit and the other for $600 profit. I was tempted to hold for a pin at 2625 but decided some profit is better than no profit so I TTMAR. I’ve learned a lot from Deal or No Deal. lol.

The call side of the IC will close for full profit of $600. Was a good day. I owe @hcgdavis for suggesting flies for defense. They will be my “go to” defense on the credit spreads that are near expiration.
#spx1dte

SPX 1dte

#spx1dte Sold SPX Jan23 2600/2595 put credit spread (pcs) @ .25 x 6, four in one account and two in the other. Looking for an opportunity to sell a call credit spread (ccs)
Sold SPX Jan23 2685/2690 ccs @ .20 x6 to complete ICs in both accounts based on break below low of day.

#markettide

SPY 21dte IC ladders

Sold SPY Feb8 275/277.5/255/252.2 call/put IC x2 @ .45
Joining the SPY21 dte ladder party with @hcgdavis. Will add a layer whenever a 21dte is available. Starting small but will increase size after I defend a couple to find out how that goes.
#spycraft

Market Tide

#Tide I now have the Market Tide indicators on all my charts. Looks pretty solid. Also noticed that SPY 1-hour chart just printed a purple arrow, signaling a possible top for at least a few days.

SPX 1dte IC

Sold SPX Jan16 2640/2645/2535/2530 call/put @ .50 x 10 total in two accounts
Used Tide to time entries per side.

#spx1dte

SPX 1-dte IC

Sold SPX Jan9 2635/2640 BeCS @ .25 x5. Will buy bull put spread later today when conditions look a little better to do so.
Sold SPX Jan9 2495/2490 BuPS @ .30 x5 to complete the IC.
Defense plan: use @hcgdavis tactic to buy back 2 or 3 of the shorts to create a ratio should either of these credit spreads get in trouble.

#bitty
#spx1-dte

Market tide

@hcgdavis @fuzzballl
Thanks for recommending this indicator and for going to bat to get us a discount. The indie has paid for itself a few times over already.

#pietrades

Alpha Shark Indidcator

@hcgdavis – Hey Chris. I just purchased the indicator for the opening price. Forwarded the email received after purchase to you and Bryan. Thanks!

TQQQ pietrade

Dipping my fingers in the pie. Thanks @hcgdavis for your help. I welcome constructive criticism on my choice of ticker or strikes.:-)
STO TQQQ Oct12 66.5p @ 1.80

#pietrade

#fuzzies

Trades and rolls.

/CL added another strangle 71 DTE 63.5/91 for 0.70 credit. Goal is to close the other one in another week, already up $900 then leave the longer one on a few weeks. The decay rates on these are about $100 per day for 5 contracts.

XBI #fuzzy lot 1 80/97 rolled out 36 DTE for 1.23 credit. Cb 18.33

LNG #fuzzy 50/66.5 rolled out 36 DTE for 1.33 credit. Cb 17.24

XBI lot 2,3, and 4 at 95/98 adjusted to 95/97, 87/95 and 95/95 rolled out to 26 DTE for 1.15 and 1.35 credits. Cost basis now 3.62, 4.33, and 0.85. Almost have a freebie, one more roll should do it but then have until Jan 2019 to keep bringing in cash.

Equity curve still flat with all this adjusting but on a positive note I have A LOT of theta decay over the next 32 days and it is all OTM at the moment so that should move the needle on the equity curve finally. Just need to sit on my hands for a week or 2 and let theta decay do its magic. Some expire next week, some week after and it all clears in 32-36 DTE.

#optionsexpiration #pietrades EXPE adding second…

#optionsexpiration

#pietrades
EXPE adding second rung to PIE ladder.
STO the 43 DTE 125 put at 2.90 and still short the 126 from last week at 2.95. Goal with these is to have 3 weeks rolling and as they approach 22 DTE roll them back to 43 DTE. Instead of a weekly #pietrades more like a conveyor belt running from 43 down to 22 DTE. Better premoiums by going out farther, less chance of going ITM, less adjusting, and less gamma risk. Experimenting with a few names based on the Tasty trade research of 45-22 DTE as the best decay rates for OTM options. Currently selling the delta 30 option if trending up on 4 hour chart and more like a delta 20 if pulling back.

TQQQ lot 1 65 CC rolled out 22 DTE for 1.15 credit. Cost basis now 62.05.
LNG lot 1 66 CC rolled out 15 DTE for 0.44 credit. Cb now 64.23
TQQQ lot 2 65.5 cc rolled out 22 DTE for 0.75 credit. Cb now 62.40

#fuzzy
LNG 50/66.5 LEAP rolled out 15 DTE for 0.68 credit. Cb now 18.57

LNG lot 2 cc may try to roll tomorrow or just let call out depending on what market does.

Have a good week, have 2 days off, going outside to bike 60 miles.

Whiz must need more subscribers to pay for a new boat, just received FXI BCS 44/43.5 Oct 12 for 0.27. Not taking it but know some of you follow him.

Getting back in BOIL

Haven’t traded this in nearly 2 years but it looks like it’s time to dip a toe in again. Starting small.
Sold $BOIL Jan 18 2019 45 calls @ 1.00 with the stock at 30.94. Highest strike in Jan. Will look to add if there’s a continued move up in nat gas.

#contangoetf, #pietrade

#hedge Still raining here and…

#hedge

Still raining here and the VIX is down to 11.82. Cheapest time to put on a portfolio hedge. I fully expect these to expire and lose all my $ but 1-2 times a year it may be a lottery ticket! This is based on the recommendation from option income masters (a subset of OIB). They hedge the entire portfolio almost monthly, after a big drop they cash out and put the money back in at the bottom. They finance the hedges by selling other options.

I am only hedging my core account, everything else already spreads or cash hedged so BTO 2 SPX 2550 puts 35 DTE. In a 10% correction these should be worth 11-12k which would offset the losses on the account in a 10% correction and then could close for cash to redeploy.

Hope I don’t need it but will see how it works.

SPX Campaign Closed Early

#spxcampaign
$SPX BTC 7/25 2855/2830 BECS at .40 STO on 7/16 at 2.25 Thank you @jeffcp66
$SPX BTC 8/3 2575/2625 BUPS at .40 STO on 6/29 at 5.00 Thank you @hcgdavis

GOOGL

STC GOOGL 20 JUL 1140/1145 BuCs @4.70…BTO 7/10 @3.95 #supercharger
Thanks to @hcgdavis and @kathycon this has become my go to strategy for now…:)

Volatility and SPX rallies

I trade VIX and VXX based on extremes I see in the price channels. I’ll start by sharing a few trades and more on strategy later.

Closed trades
STO VXX Jul13 38/39 BeCS @ .38 x 10. Bot back @ .10
Bot VIX Jul11 16P @ 1.62. Sold @ 2.02 x2
Bot VIX Jul11 15P @ .90. Sold @ 1.15 x2
Bot VXX Jul13 35P @ 1.02. Sold @ 1.45

Open trades
Rolled VIX Jul18 15/20 BuCS bot @ 1.12 to create a Jul18 15/13 BeCS for 1.90 credit – directional bias changed
Bot SPX Jul9 2780c @ 1.75 x2 in anticipation of the rally continuing thru today and perhaps Monday.

#vxxgame

#supercharger @hcgdavis Do you still…

#supercharger

@hcgdavis

Do you still have a position in SOXL for July 20th?
I have SOXL Calls +140/-145 @ $4.29
and until today SOXL was playing nice. 🙂

Just trying to figure out the best course of action.

#fuzzy

NFLX Supercharger, partial hedge

#SuperCharger Trying my first supercharger. Thanks to MamaCash on the input… Also, thanks to Iceman for his trade yesterday on NFLX, which I’ve added to the supercharger… a bear call spread above all-time highs that expires before earnings. Do we need a new name for a SuperCharger with a partial hedge?

Yesterday, Bought $NFLX July 6th 380/390 call spreads for 7.38, GTC order to close at 9.40.
Today, sold NFLX July 13th 450/500 call spreads for 1.90.

NFLX

STC on GTC order 6/22 375/380 call spread @ 4.70 with stock at 401.93… BTO 6/14 @ 3.87 with stock at 392.18..Thankyou @kathycon and @hcgdavis. #supercharger

Supercharger lineup

 

#supercharger

A year ago, I did a couple superchargers on AZO as part of a trading competition. I won the competition which was really cool but then I forgot about them. I didn’t know then that anyone else did them, much less that they had a name. A couple weeks ago @hcgdavis mentioned that he was using superchargers in a small account. When I looked at the setup, I recognized it immediately. After a little research, I decided to make superchargers a staple in my smaller accounts. This setup allows me to trade the high flyers with minimal risk. Last week, several winners closed. No losers yet. Yesterday, BABA, BIDU, and NFLX closed for target profit. I open GTC orders to close these at $2.35 on 2.5 wide spreads, $4.70 on 5w spreads and $9.40 on 10w spreads. Profit varies but it’s typically 20-30%.

Here’s my current lineup of open trades:

ADBE Jun15 237.5c/242.5c @ 3.99×2 and 3.30×2

AMZN Jun15 1660c/1670c @ 7.85×1 and 7.10×1

GOOGL Jun15 1120c/1125c @ 3.96×1 and 3.61×1
GOOGL Jun15 1117.5c/1122.5c @ 3.59×2 (added these on the dip last week)

ISRG Jun15 472.5c/482.5c @7.65×2

ILMN Jun22 275c/280c @ 3.91×2

MSFT Jun22 97.5c/100c @1.91 x2

Thanks for bringing these to my attention, @hcgdavis.

June 6 trades

BA: I’ve got two of these on, a #CoveredBackRatio and an #UnbalancedDiagonal . The CBR had a virtual call assignment today, closing the full position for a net $2964 profit on an 8×4 setup. The UB I put on right before the close yesterday and is up smartly today.

TWTR: Opened a new Unbalanced Diagonal: Aug 37 call x10 @ 5.25, sold Jun 15 40.5 call x8 @.92. I’m really loving these unbalanced diagonals, how you can really bring the long strike up closer to ATM, thus lower risk, and at the same time bring the short call down closer to ATM (collect more $$), but the ratio makes the trade work so well.

SPY added a few more #Saf-T contracts. I’m still waiting for Saf-T shares to get called so I can reset them. I decided I make more profit waiting for full profit and paying the assignment fees, vs front running the assignment myself and giving up a few cents in order to save the fees.

I expect a really slow day from here on. It’s a “theta day” where I just sit back and catch the pennies.

Sue

#fuzzy, #pietrade, #supercharger, #superchargers

@hcgdavis Do you use a…

@hcgdavis
Do you use a scan to look for opportunities for your #supercharger strategy, or is it a manual search every time?

#pietrades

#contangoetfs Some time ago I…

#contangoetfs @hcgdavis
Some time ago I remember a post with a list of #ContangoETFs that work well for selling puts and covered calls.
What do you like to trade?

TQQQ
FAS
UPRO
NUGT
TNA
UDOW
ERX
LABU
DUST
FAZ
GUSH
DRIP
KOLD

Any other?

LABU

#ShortPuts #IRA – Kinda risky but great premiums. It has had one reverse split back during the late 2015 meltdown. Other than that a pretty good performer. I’ll take a shot in an #IRA that has no other biotech exposure. Thanks @hcgdavis for reminding me of this one.

Sold LABU SEP 21 2018 60 Put @ 4.70
Sold LABU SEP 21 2018 55 Put @ 3.50

Sold LABU DEC 21 2018 50 Put @ 4.70
Sold LABU DEC 21 2018 45 Put @ 3.50

#OptionsExpiration Here’s an early expiration…

#OptionsExpiration
Here’s an early expiration report. I’ve been thinking about @hcgdavis Chris’s #PieTrades ever since his first post. I never really got serious about them, despite being intrigued. I finally decided in the last few weeks that I absolutely needed to build a portfolio strategy and not just a trading strategy. What better way than his? Of course I probably don’t follow the rules straight down the line, but here’s a report for some Pie-like trades this week:
1. AMZN: On Wednesday when the stock was at 1600, I purchased 100 shares and sold ATM calls for $11.35. Assuming AMZN closes above 1600 today shares will be called away for total profit of $1071 in 3 days. I will sell an ATM put for next Friday at the close today. AMZN is inching down and might be shooting for a 1600 pin….it would be fun if the shares aren’t called and I can roll calls into next week.
2. CVX: Nice dividend next week, so I sold ITM puts last night for assignment. I sold $129 strike for .76, closed them this morning for 87% profit. With next week being div week, I will sell puts before Ex-Div to be virtually paid the dividend immediately.
3. IBM: I did the same div play mentioned above for CVX this week for IBM, sold the put priced with added div premium, could have taken 100% profit, but closed it yesterday for 80% profit. I already have 100 shares with calls sold for next week. The income stream on IBM from #Pie has completely covered the post-earnings decline in underlying.
4. NFLX: This will be my first assignment in a long time. Earlier this week I sold 1 $330 put for $3.10. It’s dancing in and out of profit today, but I’d like to take the shares and sell a juicy call for next week.
5. NVDA: I sold ITM puts at the open this morning and later covered them for 83% profit. I sold 257.5pfor next week @ 4.34.
6. SPY: I sold ITM (272) puts last night for either a scalp or assignment today. They were covered at 50% profit.
7. CRM: I sold ITM puts yesterday ($131) for assignment, I will seek 70% profit on those today or assignment.
8. MA: I sold several puts on MA this week and took 70% profit, but I’ve got 190 (@.94) and 192.5 (@1.60) lined up for next Friday.
9. I’ve got 1×2 spreads on for next week on BABA and LMT. In a choppier market I like the idea of 1×2’s for a wider downside range. But in an uptrend, straight naked puts are better for higher premium collection.

It’s just in my blood to cover these puts at a 70%+ profit level vs. taking the shares, even when I know it may be more lucrative to get the shares and sell the call side. I’m progressing! BTW I’ve started using IBD scores to find my #Pie candidates. Of all the stocks listed above probably IBM, CVX, LMT are the weakest in regards to IBD scoring.

#fuzzies, #supercharger

Closed Early FB SPX CAT / NFLX Earnings / SPX Campaign

Closed early
$FB BTC 4/20 140/150 BUPS at .05 STO at 1.90 on 3/27
$SPX BTC 4/20 2480 Put at .40 STO at 12.50 Thanks again @hcgdavis Last contract
$CAT BTC 4/20 125/135 BUPS at .05 STO at 1.45

#earnings
$NFLX STO 4/20 275/280/340/335 IC at 2.00
$NFLX STO 4/20 260/270 BUPS at 1.12 Thank you @thomberg1201

#spxcampaign
$SPX STO 5/18 2835/2810 BECS at 1.55 Thank you @jeffcp66

Closed Early / Rolled

Closed Early
$SPX 4/13 BTC Half position 2575/2600 at .50 STO at 1.70 One half to go (hope it does not go the wrong way).
$AAPL BTC 4/20 150/160 BUPS at .10 STO at 1.15
$AMZN BTC 4/20 1180/1190 BUPS at .05 STO at .81 Thank you @thomberg1201
$SPX BTC 4/20 2480 put at 1.90 STO at 12.50 One contract left. Thanks again @hcgdavis
$FB BTC 4/20 140/150 BUPS at .20 STO at .85

Rolled
$FB BTC 4/13 165 call and STO 4/20 165 call for added 2.60 credit against 1/2019 175 call. I think this is a fuzzy but I am still a bit hazy. Is that a double bewilderment? Thank you @fuzzballl

Closed Early / SPX Campaign

Closed Early
$MTN 4/20 BTC 210 Put at .30 STO 12/4 at 6.90 Thank you @jdietz1954
$SPX 4/20 BTC 2480 put at 6.00 STO at 12.50 2/3 of trade still open. Thank you @hcgdavis
$FXI BTC 4/20 51 call at .08 STO at .60 Thank you @thomberg1201

#spxcampaign
Following @jdietz1954
$SPX STO 4/13 2720/2710 BECS at 1.40 Thank you

FAS

#SyntheticStock #LongCalls – With my margin hog AMZN position out of the way now it’s time to start looking for new opportunities. I’d like to stay involved in the banks so this seems like a good way to do it. Wasn’t having much luck out in 2020 with the market makers for a 2 strike wide synthetic. Instead, just going to Jan 2019 and buying the straight calls. (only 5 wide strikes in 2019 anyway). As @hcgdavis pointed out, the weekly premium is really nice in this ticker.

Bought to Open FAS JAN 18 2019 65.0 Calls @ 10.50

Max loss of 10.50 with 42 weeks to run so need 25 cents per week to cover.

So: (premiums are so good that this is a freebie. 42 weeks to go is AFTER this week…crazy!)

Sold FAS MAR 29 2018 65.5 Calls @ .85

FB update

Hi everyone! The FB #PutRatioJadeLizard from yesterday was closed today for 33% profit. My target was 50% but, as you know, when a underlying hits the right-side slope of a Jade Lizard risk graph the accrued profits start dropping off. But I opened a new #IronCondor on it. Because the alternate sides have different strike widths I skewed the contract amounts.
Apr 20 150/155/182.5/185 5×7 IC (5 on put side, 7 on call side), net credit 5.83, BE 153.80/183.30

I plan to layer in a lot of SPY Put Ratio Jade Lizards whenever there’s a 20DTE on the chain.
Today: Apr 11 +273p/-272p x2 @2.37cr, -275/277 CCS @ .69 cr

A long time ago I wrote about waiting for a 3-of-5 bar 1-standard deviation up move before trusting a rally. It’s looking like that might be a good rally indicator, only because we can’t seem to barely get a 1-SD up move at all. In SPX we now have 16 straight bars I think with a 20-day 1SD up move rolling total of 1. I’ve only found 3 times in history going back to 1987 where we’ve gone this long with so few 1SD up moves. It speaks to the choppy nature of markets, and to not get faked out on rallies until a solid string of 1SD up moves unfolds. I’m watching it every day, will obviously keep posting about it.

Sue

#pietrades

Evening all. I’m finally getting…

Evening all. I’m finally getting to post after a crazy day. Contractors came in and demo’d the bath down to the studs with much violence and noise. I was out during the afternoon so missed an alert on my Mar 16th class credit spread.
#spxcampaign
BTO April 20th 2800/2810 for 4.05 with SPX @ 2759.39
Rolled my Short Mar 16th 2800 Call up to Mar 16th 2815 to form a BuCS with the long 2810 late in the afternoon with SPX @ 2777.80. This was an adjustment I made for the class trade. May not have been the best idea.
BTC the SPX Mar 16th 2365/2325 BuPS @ 0.10. Took this off incase the market reverses next week.
BTC SPXL Mar 16th 45 Put @ .60 off a GTC order. Originally opened at 1.25 on the 7th.
I have had a GTC order on my Mar 23rd 2870/2890 BeCS @ .10 that never got filled. It is back up to 1.10. Go figure.
Expired ERX Mar 09th 27.5 Thanks @hcgdavis
Hope everyone has or had a great weekend.

VXX long put spreads against SVXY

Thanks to @hcgdavis for cluing me in on Mark Sebastian’s trade idea on long VXX puts and put spreads. I bought $VXX Mar 16 48/46 put spreads for 1.24 debit. Looking to close for the full 2.00 on a volatility pullback and applying the profit to SVXY stock.

Spycraft / Short Put ALGN / Closed Early BABA

#spycraft
$SPX STO 4/20 2480/2900 Strangle for 18.90 Thank you @hcgdavis

#shortputs
$ALGN STO 4/20 230/240 BUPS at 1.50

Closed Early
$BABA BTC 3/16 200/190 BECS at 20% of full profit

Jan 25 #Fuzzy Land and…

Jan 25 #Fuzzy Land and #PieTrades

Another very nice day in Fuzzy Land here. I feel very balanced in the portfolio right now. Hedges are working on the trouble makers. JNJ–nice move today. EA–moved the wrong way but I’ve learned to stay patient on the earnings trades that have a 100% backtest win rate, and I keep them small. AAPL got cut today, when I ran the backtest on it today it only wins 25% of the time for earnings run up, so I was a goof to even have that trade on. BUT I had a pre-earnings trade on for BA today that ran up big in just a few hours. I’ve got a nice mix of shorts and longs. With volatility up, it’s easy to hedge the Fuzzy Bears with a strike that allows beautiful profit even if runover.

1. Closed the FLIR Earnings Run Up Fuzzy for 47% profit, $415
2. Opened hedged SPY Fuzzy Bear Feb 284/284/285 @ 2.54 Jan31 280 hedge @.53
3. Closed AAPL pre-earnings fuzzy for net $1115 loss….BUT
4. Opened BA pre-earnings fuzzy and closed it 3 hours later for $2100 profit
5. Rolled MU Hedges to next week, and opened a new MU Fuzzy (Mar 43/43/41 for 2.22). I’ve collected a net $4200 in MU hedges…MU can be a little dramatic (like a toddler in a store), but that’s what makes for nice premium to sell for hedges. So MU is now in 3 of my 4 accounts.
6. VIX I compared long calls to a long fuzzy for VIX…remember the grocery store question? ATM Fuzzy costs the same as $2 OTM long calls, with higher deltas on the Fuzzy for better performance. So I opened Mar 21 12/12/11 Fuzzy, unhedged, for 1.57 as an overall hedge. I’d like to layer more of these in as vol/price drops.
7. AMTD, there’s a sell program going on in this ticker, I’ve got lots of cycles in front of this for hedges, so rolled today from 58 to 56 calls. There was a LOT of call buying on this today, probably due to ETFC reporting. I didn’t see the call buying affect price though, like it usually does. It’s sitting on a 50% retracement here. I’m grateful for protective puts + hedges for a nice counterbalance.
8. Added 2 small-lot DIA unhedged fuzzies at the bottom today. Feb 263/263/261 @ 2.45
9. Added MGM pre-earnings run up Fuzzy (early I know) Feb23 36.5/36.5/35 for 1.13
10. Although not technically a fuzzy since it was a synthetic only, I made 422% on a BX-synthetic, buying yesterday at .09 and selling today at .47. 5x my entry price. That was an earnings run up play.

11. PieTrades: so far my only ticker is LMT for this campaign. Sold 327.5 puts on Monday, was able to cover 1/2 of them today for .05. I assume other half tomorrow morning. That will equal $680, thanks @hcgdavis LMT reports Monday morning, so Monday or Tue next week will be good for the next round.

Jan 18

Not a lot to report here. The SPY double #Fuzzy performed well today (but really, and @hcgdavis already knows this, it’s just kind of a glorified double calendar–I doubt it will stay in the toolbox. It was nice to have a day where hedges actually got to work a little.

I’m working on a new Fuzzy derivative. Anyone a Don Kaufman fan? Don is at a site called Theo Trade. He sent out a video (free) last night for a trade called a “Risk Twist” trade. Perfect for continuing with trend participation without fear of reversal. His trade is a 7DTE 85-delta long call coupled with a 90-day broken wing reverse 1×3 put butterfly. I know, that’s a mouthful. It’s kind of a franken-fly. I modeled it, it was ok. Net long delta gives you trend participation, coupled with some protection. But I knew I (we) could do better! I must say I’ve got a couple great Fuzzy partners that help with tweaking and testing of fuzzies, @MamaCash and @Kathy111.

Enter…the “Fuzzy Twist” 7DTE 85-delta long call, 90 day Fuzzy bear (unhedged). This is a pretty nice trade for trend continuation (at extensions) with downside protection that kicks in almost immediately.

I put a bunch of them on today to gauge performance. Here’s one you can throw into an analyze tab to check out, pay attention to the t+1 line (purple line):
QQQ:
1. Jan 26 161 call @ 4.71
2. Apr -165 call @ -5.29
3 Apr 165 put @ 4.84
4. Apr 167 protective call @ 4.21

I’ve got these on the Q’s, SPY, DIA. You can be sure I’ll report back on their value, but I’m kind of psyched that it’s a tool to keep me in the trend at extensions.

Sue

#twistedfuzzy