#coveredcalls OXY
Sold Feb. 19, 22 calls@2.11, stock at 22.30.
Recent Updates Page 164
BIDU Put
#shortputs
$BIDU STO 1/15 227.5 put at 3.55.
NFLX SNOW
#ShortPuts – Happy to take these on the bounce to get this account back to cash. Soon to be all TOS finally!
Bought to Close NFLX JAN 15 2021 490.0 Put @ 1.35 (sold for 2.50)
Bought to Close SNOW JAN 15 2021 290.0 Put @ 3.70 (sold for 4.50)
NNDM Put Roll / MARA Put Closed
#shortputs
$NNDM BTC 1/15 10 put and STO 2/19 10 put at added credit of 1.51
$MARA BTC 1/15 13 put at .05. STO at 1.60
AAXN,
STO February 130 puts at 4.20
LAZR VLDR
#ShortPuts – With the weeklies and the improving liquidity I’m concentrating all my LIDAR power on LAZR….mainly two to three weeks out.
Bought to Close LAZR JAN 15 2021 28.0 Puts @ .18 (sold for .80)
Bought to Close LAZR JAN 22 2021 27.0 Puts @ .70 (sold for 1.30)
Bought to Close LAZR FEB 19 2021 20.0 Puts @ .48 (sold for 1.25)
Bought to Close LAZR FEB 19 2021 22.5 Puts @ 1.05 (sold for 2.10)
Sold LAZR JAN 29 2021 26.0 Puts @ 1.05 and 1.15
Sold LAZR FEB 5 2021 25.0 Puts @ 1.25
Small loss to move buying power to LAZR:
Bought to Close VLDR FEB 19 2021 17.5 Puts @ .92 (sold for 1.00)
Bought to Close VLDR FEB 19 2021 20.0 Puts @ 1.92 and 1.95 (sold for 1.75)
Now all set and looking to add on dips…
Question about Space Trip hedge (STT)
I was modeling the STT trade in TOS and everything looks fine until I introduce IV increase. I would expect IV to increase in a case of a 10+% sell-off. With the IV increase of 10 points, the value of the STT is cut in half. This is for a well aged position, so a new position would be a loser anyway. This does not look like a good hedge.
I have noticed that presentations about STT definitely ignore ( if not refuse) to include the IV increase. I watched a number of them and every time all modeling is done without taking IV into consideration.
Am I missing something in the TOS model?
PTON
Didn’t think this was going to fire, but it did late today:
BTC $PTON Jan-15-2021 130 puts @0.12 debit. Was STO @1.32 on Jan-05.
SPY SLB WFC CINF MRO
Pretty extraordinary moves for the SPY and some mostly sleepy stocks just in the last 5 days
SPY from 368 to 381
SLB from 21.98 to 26.73
WFC from 29.46 to 34.52
MRO from 6.81 to 8.38
CINF from 82.62 to 93.83
I’ve been fading most of these movers with Bear Call diagonal spreads. The next few weeks should be interesting.
Markets
Could be something or could be nothing
Morgan Stanley Spots An Extremely Rare Market Signal Which Precedes Selloffs
The percentage of NYSE stocks above 200-day moving averages has surpassed 90% for the first time since 2009. This rare event has happened only five times using weekly data going back to 1974.
https://www.zerohedge.com/markets/morgan-stanley-spots-extremely-rare-market-signal-which-precedes-selloffs
Not everyone agrees: without looking at the data, Bank of America notes that the 2009 and 1975 signals occurred after “generational lows” for the SPX, and explains – somewhat hopefully – that while “market corrections are a part of the life of an investor, if history is any guide, this move above 90% for the % of stocks above 200-day MAs is less likely a sign of a major top and more likely longer-term bullish confirmation after a period of economic and market stress.”
One of the two banks is wrong, and since nobody likes unnecessary suspense, we will know who is right and who is wrong in just a few days.
PINS
#BullPutSpreads – Riding with jsd501 on this one. Playing for a breakout with very limited downside. Could get stock or roll into earnings. Staying small…
Sold PINS JAN 29 2021 80.0/75.0 Bull Put Spreads @ 3.20
SPX trades
#SPX7dtelong Bought to Open $SPX Jan 19th 3770/3790-3800/3820 iron condors for 16.75, with SPX at 3796. This is next TUESDAY expiration due to the Monday holiday.
#SPX1dte trade to follow
PINS,
Both SMM and Minervini have this on their buy list today so I sold the January 29, 72 puts at 2.95 with earnings on February 5th.
BLNK
#ShortPuts – Got this from a friend. Taking a small starter for first time in it. Hard to say when earnings will be….could be anywhere from mid Feb to early Apr.
Sold BLNK FEB 19 2021 25.0 Puts @ 1.03
TQQQ
#ShortPuts – Filled while I was out earlier. Adding to the ladder.
Sold TQQQ FEB 19 2021 115.0 Put @ 2.40
OXY Iron Condor
Sold $OXY 2/19 16/19/25/28 iron condor @ 1.00. Collecting 1/3 the width of the strikes. Stock at 22.16.
ABNB Roll
BTC Jan-15-2021 $ABNB 125/135 #BuPS @0.15 – was STO @2.00 Jan-05-2020
STO Jan-29-2021 $ABNB 125/135 @1.5
Holding Jan-22-2020 $ABNB 128/137.
TQQQ,
STO February 19, 115 puts at 2.35
TQQQ,
In my IRA, STO February 19, 120 puts at 2.72
COUP
#ShortPuts – Making a little room for earnings season.
Bought to Close COUP JAN 29 2021 290.0 Put @ 1.80 (sold for 4.60)
OSTK Puts Closed / RKT Puts Rolled (not taking off)
#shortputs
$OSTK BTC 1/15 50.5 put at .80. STO at 4.46. Thank you @fuzzballl
$RKT BTC 1/15 21.50 put and STO 1/22 21 put at cost of .15 but would gain .50 if assigned.
TSLA
REGN
#ShortStrangles – Coming out of a squeeze but bumping into resistance. I’m still getting out of the way of the upside. Closing call and rolling put side up. Earnings the week after this trade.
Bought to Close REGN JAN 29 2021 550.0 Call @ 3.70
Rolled REGN JAN 29 2021 460.0 Put to JAN 29 2021 480.0 Put @ 2.95 credit
This leaves 480 put @ 5.45
TQQQ,
BTC January 15, 90 puts at .02, sold at 2.75
NFLX
#ShortStrangles – Looking weak so taking profits. Earnings a week from today.
Bought to Close NFLX JAN 15 2021 485.0/585.0 Strangle @ 4.81 (sold for 8.30)
TQQQ,
STO February 19,130 put at 4.20
TQQQ,
BTC January 15, 85 puts at .02, sold at 2.40
JD Puts
#shortputs
$JD STO 1/29 85 puts at 1.83
ZM
#ShortPuts – This is in the account I’m getting ready to move so playing it safe…
Bought to Close ZM JAN 15 2021 320.0 Put @ 2.95 (sold for 4.00)
TQQQ, STO February 12, 105 puts at 1.38
STO February 19, 110 puts at 2.15
#rolling #coveredcalls #shortputs AAL GPS…
#rolling #coveredcalls #shortputs AAL GPS GPRO
AAL rolled Jan. 15, 20 put to Feb. 19 for .15 AAL is near 15.
GPRO rolled Jan. 15, covered 9 call to Feb. 19 for .68 GPRO is up .97 to 9.24
GPS rolled Jan. 15, covered 21.50 call to Feb. 19, 22 call for .70 GPS is up .83 to 22.25
TQQQ
#ShortPuts – Adding to the ladder…
Sold TQQQ FEB 19 2021 110.0 Put @ 2.10
MRVL Strangle / MARA Put
#shortstrangles
$MRVL STO 1/15/2021 51/52 strangle at 1.85
#shortputs
$MARA STO 1/15 22 puts at 2.04
TSLA
#ShortStrangles – Selling the put side a little tighter than the call side since it’s down today. Well outside the expected moves and two weeks before earnings.
Sold TSLA JAN 15 2021 725.0/980.0 Strangle @ 7.10
REGN
#ShortStrangles – Filled on the call side legging into a short strangle.
Sold REGN JAN 29 2021 550.0 Call @ 2.00
460/550 @ 6.20 a week before earnings.
SPX trades
#SPX7dteLong Bought to Open $SPX Jan 15th 3790/3810-3820/3840 iron condors for 16.50, with SPX at 3815.
#SPX1dte Expected to expire: $SPX Jan 11th 3700/3720-3870/3890 condors, sold Friday for 1.00.
PENN Puts
#shortputs
$STO 1/15 93 puts at 1.16
Closing NVDA
Bought to close $NVDA 2/5 435 put @ .90. Sold for 4.40 on 1/6. Thanks for the idea @fuzzballl.
LULU
TDOC Put Closed / NVDA Call
#shortputs
BTC 1/15 175 put at .10. STO at $2. Thanks @fuzzballland @thomberg1201
#coveredcalls
$NVDA STO 1/15 570 call at 5.93
NVDA
Roll $NVDA Jan-15-2021 485/495 // Jan-22-2021 505/515 @1.4o Credit
TQQQ, STO January 29, 125…
TQQQ, STO January 29, 125 puts at 1.10
REGN
#ShortPuts – Might be levelling off out of it’s dive. Selling at the expected move and the week before earnings. Order in to leg into a strangle on a bounce.
Sold REGN JAN 29 2021 460.0 Put @ 4.20
ABNB
STO $ABNB Jan-22-2021 128/137 #BuPS @1.25
(Small oops on the spread width)
TQQQ, BTC January 15, 80…
TQQQ, BTC January 15, 80 puts at .02, sold at 2.10
NIO Puts
#shortputs
$NIO STO 1/15 60 puts at 2.16
Summary of NIO CC through 115 Days
https://coveredcallswithjeff.wordpress.com/2021/01/10/covered-call-on-nio-generating-unrealized-gain-of-23447-in-115-days-129-or-410-annualized/
Summary of ATEC CC + Naked Put
https://coveredcallswithjeff.wordpress.com/2021/01/10/atec-position-covered-call-naked-put-generating-positive-results-unrealized-gain-of-1687-in-28-days-roi-28-9-or-377-annualized/
Good start to 2021…..at least for one week!
https://coveredcallswithjeff.wordpress.com/2021/01/10/ib-account-week-ending-1-8-21-17979-or-4-19-return/
MDLZ DiagBFly – analysis of a campaign
Original Trade initiated on June 17, 2020:
$MDLZ @ $52.74
BTO 20 MDLZ Jan 22: 40 Put / 65 call long strangle @ $4.65 (total cost of trade = $9,300).
583 days left to sell more premium.
Analysis:
Closed out position on January 8, 2020, MDLZ trading at $58.19.
Days in Trade: 205 – 29 weekly option periods.
Buy transactions: 34 – Bought premium total: $59,618
Sell transactions: 34 – Sold premium total: $67,873
Note: more trades than weekly option periods reflect making ‘scalp’ trades within the week.
Net premium collected: $8,255 on the 20 contract original trade.
% return for 205 days = $8,255 / $9,300 = 89%. (my thinking on demonstrating returns, others may suggest alternatives).
Points for reflection: Early on it was clear that the premiums were not large enough to generate enough $returns – I mentioned after a few months I was going to stop this strategy and move into higher priced underlyings – IBB in this particular case. Despite this, I carried on mainly to practice discipline on rigorously rolling and adjusting week after week. I’m glad I did, because it becomes a habit, and one does not really care about how the underlying moves – you just intuitively know where to roll to, even at the expense of rolling out in time.
EWZ was my starter using this Diagonal Butterfly approach (I took it from the seminal work on options by Larry McMillan).
The percentage returns on capital deployed are good because the LEAP strangle was an OTM structure. My current preference is for an ITM LEAP strangle strategy – mainly because I think it would handle a strong down move better – however it is obviously ties up a lot more capital. The jury is still out on this.
The whole idea of the strategy was to deploy capital with inbuilt protection, hoping to generate decent returns but able to handle a defined amount of volatility. To that extent it worked. The strategy continues in other underlyings: EWZ, FAS, IBB, XLK, XLY. Higher priced stocks that generate more premium which I feel gives more flexibility on the rolling strategy (the key part of managing the campaign).
Expiration
#optionsexpiration
$NVDA 545 call
$PEP 148 call
$NUGT 90 call
$TQQQ 130 put
$NIO 54 put
$NIO 56.5 put
#assignment
$NIO 55 call
$PLTR 25.5 put
Expire
TSLA Jan-01-2021 680/690 #BuPS Was STO @1.25 1/4/2021.
PSTH FVRR LAZR Puts Closed / NFLX BUPS Partial Close
#shortputs
$PSTH BTC 1/15 25 put at .05. STO at 1.60
$FVRR BTC 1/15 210 put at 1.80. STO at 11.70
$LAZR BTC 1/15 25 put at .10. STO at 3.30
#bups$NFLX BTC 1/15 470/480 BUPS at .60. STO at 3.40
SPX trades
#SPX1dte Sold to Open $SPX Jan 11th 3700/3720-3870/3890 iron condors for 1.00, with SPX at 3816, IV 11.3%, deltas -.06, +.06.
VLDR
#ShortPuts – Gave up on getting the rest of the 17.5s. Added a little higher.
Sold VLDR FEB 19 2021 20.0 Puts @ 1.75
VXX Diagonal Strangles
Sold to open VXX 01/15/2021 15.50 Puts @ 0.22
Sold to Open VXX 01/15/2020 19.50 Calls @ 0.29
Sold to open VXX 01/15/2021 15.00 Puts @ 0.09
Sold to Open VXX 01/15/2020 20.00 Calls @ 0.26
SLB – two Profits
Bought to close SLB 01/08/2021 25.0 Calls @ 0.01 – Sold this week at 0.38.
Sold to close SLB 01/15/2021 25.0 Calls @ 0.48 – Bought to open a long time ago @ 0.09 as part of an old Diagonal Call Spread
VXX – Diagonal strangle covered
Bought to close 01/08/2021 19.00 Calls @ 0.01
Bought to close 01/08/2020 16.00 Puts @ 0.01.
Looking to reload for next week.
Closing today’s SPX
Bought to close the adjusted position, now 1/8 3765/3790/3805/3830 iron condor @ 9.215 for a modest loss.
Original premium from 3640/3665/3805/3830: 4.05 credit
Rolled put spread side to 3760/3735: 2.00 credit
Rolled put spread side to 3790/3765: 2.30 credit
Total credit taken in: 8.35
Debit to close: 9.215
Loss: .865
Considering where /ES was overnight, I’m lucky to be out for this close to breakeven.
#closing #ironcondor RCL Dec. 7,…
#closing #ironcondor RCL
Dec. 7, sold Jan. 15, 60/65/95/100 for 1.53, bought today for .20
LULU
NIO T Puts / BIDU PLTR MARA Calls Rolled
#shortputs
$NIO STO 1/8 56.50 put at .50. Replacing stock that might get called away today
$T STO 2/19 29 put at 1.05.
#coveredcalls
$BIDU BTC 1/8 215 call and STO 1/15 222.5 call at added credit of .30. Stock at 220.24
$PLTR BTC 1/8 25 call and STO 1/15 26.5 call at debit of .24. Stock at 25.92
$MARA BTC 2/19 20 call and STO 6/15 30 call at added credit of 1.33. Stock at 26.63.
TQQQ
Bought to close TQQQ Jan 08 2021 200 Calls at $0.01.
Sold these as Diagonal Calls at $0.55 on 12/31.
#TripleDip on my long 220.0 Calls
OSTK
#CoveredCalls – Small position. Rolling but maintaining some downside hedge.
Rolled OSTK JAN 8 2021 52.0 Calls to JAN 15 2021 52.0 Calls @ 1.10 credit
VXX Calls
Bought to close VXX Jan 08 2021 20.5 Calls @ 0.01. Sold Monday at $0.26.
Bought to close VXX Jan 08 2021 21.0 Calls @ 0.01. Sold Monday at $0.23.
Bought to close VXX Jan 08 2021 21.5 Calls @ 0.01. Sold Monday at $0.21.
ADSK
Sold 2/19 280 put @ 3.10. Earnings not expected until after Feb expiration. Delta 14.
SPY Rolls
Bought to close 1 SPY Jan 08 2021 375.0 Call / Sold to Open 1 SPY Jan 15 2021 377.0 Call @ $0.26 Credit while pushing the strike price up 2 points.
Bought to close 1 SPY Jan 08 2021 374.0 Call / Sold to Open 1 SPY Jan 13 2021 375.0 Call @ $0.14 Credit while pushing the strike price up 1 point.
TSLA’s rocket ship move (up over 20% this week alone) continues to power the SPY ever higher 😦
REGN
#ShortPuts – This is in an account I’m working back to all cash to begin a roll to TDA next week. Age 59.5 is finally here and will happily have everything in one spot now. Nice bounce. Will be looking to get back in prior to earnings…
Bought to Close REGN JAN 15 2021 450.0 Put @ .70 (sold for 4.20)
VLDR
#ShortPuts – Sold Feb at the open so taking Jan profits on the bounce now.
Bought to Close VLDR JAN 15 2021 20.0 Puts @ .15 (sold for 1.00)
PLTR
#ShortPuts – This one has been borderline the entire time so taking it here.
Bought to Close PLTR JAN 8 2021 25.5 Puts @ .30 (sold for 1.00)
VLDR
ShortPuts – Partial fill at the open. Better than nothing I guess.
Sold VLDR FEB 19 2021 17.5 Puts @ 1.00
SPY
In case I’m wrong and the market keeps going up like a SpaceX rocket:
#riskreduction
#ironbutterfly
Closed SPY Jan 15th Butterfly. Net loss 4.10.
Still holding SPX BECS hedged with SPY long call.
SNOW
Not trusting this rally, so:
#shortputs
#riskreduction
BTC SNOW Jan 15th 290 Put for 4.60, STO for 7.00.
December Jobs Report
#Jobs — LOSS of jobs, first time in 8 months.
Loss of -140,000 non-farm payroll jobs, vs. expected gain of 50K
Unemployment at 6.7%, unchanged
U6 unemployment at 11.7%, down by 0.3%
Labor force participation 61.5%, unchanged
Avg hourly earnings +0.8%
Nov jobs revised up by +91K to +245K
Oct jobs revised up by +44K to +654K
Happy New Year everyone!
A few quick updates. Trying to catch up with the group now that the majority of the work for Traders Reserve and Quantculture is done.
Big 2 weeks for my personal accounts. Finally made back all the losses from the Feb 6, 2018 SVXY implosion that took out 3 of my accounts. They are all either at break even or all time highs. I appreciate the group introducing me to SVXY but since then I make sure I know the underlying and what it can or cannot do. Never be short unhedged volatility again!!!
Sometimes expensive lessons are the most painful but also the best teachers. Since then I stick to my mechanics and had an across the board 60.8% return for 2020 including the market puke in March.
With that said I am trading 6 active accounts each with up to 7-10 positions so posting them would take me hours.
Going forward will just point out really juicy trades that I see.
The Russian virus took out quantculture.com already. We have a back up working on Linux but will probably be a few weeks before it is functional again. Stay tuned, there will be some really useful tools coming in the future. The robot is back up and trading but to be honest has not been that successful. It keeps buying too expensive options. We are tweaking it to trade spreads or at least find the cheapest option or go out farther in time to reduce the theta decay/drag. That should work and also improve its winning %. Will update once it is optimized.
Stay healthy! Hope 2021 is good to everyone. Get your Covid vaccines when you can but expect some side effects. It creates a fairly massive immune response. I just had muscle aches on round 1. I hear round 2 is worse but it could save your life or someone you know. Staff had headaches, muscle aches, fatigue, low grade fevers, and nausea. All resolved in 24 hours.
Cheers!
Options Bistro 