MU #fuzzy Rolled 30 DTE…

MU #fuzzy

Rolled 30 DTE 50 call out to 44 DTE for 0.43 credit. Cb now 8.67. Briefly had a break even, need a few more rolls to put it solidly in the profit column.

SSO TQQQ new trades

Now that @smasty160 (Sue) has informally introduced the “lophir” to Options Bistro, I’ll start sharing some of my trades. By way of a quick refresher, the lophir trade consists of selling 30DTE 30/15 delta put credit spread x2 and buying a 40/22 delta put debit spread x 1. All of these trades are net credit. You may notice me tweaking delta and DTE at times. My goal is to make some quiet money on a low maintenance trade.

STO +5 1/-2/-1/2 SSO Sep21 124.5/123/120.5/118 PUT/PUT/PUT/PUT @ .55 credit. GTC order to close at .17
STO +4 1/-2/-1/2 TQQQ 100 Sep28 68/65.5/63/60 PUT/PUT/PUT/PUT @ .60 credit. GTC order to close at .18

Buyer beware. These trades are in the experimental stage. Current plan is to cut the delta in half when price hits the profit peak on the risk graph and cut it in half again when it hits the breakeven price or close the trade if it’s near expiration. Our backtesting indicated that we wouldn’t need to manage often but live trading can make a liar out of backtests.:-)

#putratiospread #lophir

#hedge Still raining here and…


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.

Gradually catching up and easing…

Gradually catching up and easing back into trading from vacation.

Only a single roll today. More to follow tomorrow or Friday.
#pietrade MU rolled the 55 call out next week for 0.44 credit. Cost basis is now 55.79.

Tomorrow will have EXPE, WDC or not depending on earnings response.
AMAT, TQQQ, FAS, XBI, and second batch of AMAT.

Hope everyone had a good week.

@smasty160 is right, weather was awesome except for the 104° day but even that did not feel hot compared to east coast.

GOOGL supercharger

Now the post-earnings fun begins. When GOOGL rallies 3% or more after earnings, it’s very likely to continue moving up for the next 2 to 4 weeks. Historical patterns. I love them.
Bot GOOGL Jul27 1240/1250 BuCS @ 7.79. GTC order to sell @ 9.40

Adjustment plan: If GOOGL moves below 1250 on a close, I will roll my short call up to transform this trade into a BeCS or add a call credit spread to create a fly. Thanks @smasty160!

#pietrades These work great but…


These work great but always looking for ways to improve on tactics. Improve returns, success rate, less adjusting because adjusting costs money or delays profit taking. I am not greedy, just trying to figure out what works the best with the least amount of work or adjustments.

So I have been experimenting with this on a limited basis. Instead of starting #pietrades with only 4-8 DTE, go out about 3 weeks. Split the distance between tasty trades recommended 45 DTE and the 1 week for classic PIE trading This does 4 things. Gets you farther OTM, collects higher premiums, but stays on the steepest part of the decay curve, and allows quicker recycling of capital. Also most will be rolled or closed before full expiration. My limited experimenting with them shows most are closed or rolled within 2 weeks of opening.

I don’t think we need a new hashtag, they are still in the PIE realm. Maybe just add a 21 to it if you post it, so 21 #pietrade or #pietrade 21 or however many days until expiration.

So I am looking at 3 possible this morning. EXPE, VLO, AXP. Will post once I see where market opens. Also on vacation week of 7/14-21, be out in @smasty160 country so a perfect time to start a few of these as I will not be trading that week.

As the time value erodes, would then roll each week in same name if you still like the ticker or move to new positions as the market oscillates.

Will keep posted on how they work real time and on a larger scale.

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.