Rolled $SONO Nov-20-2020 15 #CoveredCalls // Dec-18-2020 22.5 @5.25 Debit for a 7.50 better strike.
Recent Updates Page 173
#coveredcalls LB Sold Dec. 18,…
Sold Dec. 18, 40 call for 1.80. LB up after earnings.
SPXL
Rolled SPXL Nov-20-2020 60 #CoveredCall // Dec-18-2020 64 @0.60 Credit.
CRWD
STO January 15, 120 put at 4.20
#shortputspread NVDA Sold Dec. 18…
#shortputspread NVDA
Sold Dec. 18 455/465 for 1.40
#postearnings
#closing #shortputs NKLA Sept. 9,…
#closing #shortputs NKLA
Sept. 9, sold an Oct. 16, 20/30 put spread for 1.47 at exactly the wrong time as it went from around 50 that day to the teens. The long put worked out which is the difference in this trade. I closed the long put and went essentially naked to Nov. 20. Closed the position today with a little over $100 gain. NKLA has recovered to 26.
NVDA
#ShortPuts – Thanks @jsd501 for the post earnings idea…
Sold NVDA DEC 18 2020 450 Put @ 3.20
TQQQ
STO January 15, 80 put at 2.10
Digging In
#SPX7dteLong Added more to my $SPX Nov 25th 3615/3635 call spreads for 3.75. Bought the first batch much too early yesterday for 9.50. Sticking with the Upside Warning, although it faces quite an adversary in this Covid surge.
NVDA
STO January 15, 425 put at 5.05
TQQQ
#ShortPuts – Sold TQQQ JAN 15 2021 85.0 Put @ 2.55
TSLA Roll Call (Present) ;-) / PLUG Put
$TSLA BTC 11/20 490 call and STO 11/27 510 call for added 1.04 credit and extra $20 if called away. Sold against 12/18 450 calls.
$PLUG STO 11/20 23 put at .50.
Calculating risk associated with a collar trade
A friend asked me a question about risk and collar trades. I provided an answer, but then started doubting if the answer was correct.
Example:
BTO 100 shares of XYZ stock
BTO 1 Jan 2020 $100 PUT
STO 1 Jan 2020 $100 CALL
The entire transaction was done for $100 debit.
I said that if the position is held until expiry, there would be not risk (not counting fees).
Is that correct or did I miss something?
TGT,
STO December 18, 160 puts at 2.05
TQQQ,
STO January 15, 85 puts at 2.40
SPX trades
#SPX7dteLong Sold to close $SPX Nov 18th 3545/3565 call spreads for 19.75. Condors bought for 17.75 on Tuesday the 10th. The drop made me nervous enough to sacrifice $25 to avoid an ITM expiration.
#SPX1dte Expiring: 3520/3540-3660/3680 condors, sold yesterday for 1.30.
VXX Puts – early roll
Bought to close VXX Nov 20 2020 21.5 Puts / Sold to Open VXX Nov 27 2020 21.5 Puts at $0.30 Credit.
Taking in $Cash. Buying more time.
SPY Diagonal
Sold 1 SPY NOV 25 2020 $357 CALL / Bought 1 SPY DEC 11 2020 $380 CALL @ 4.75 Credit
PTON
Rolled $PTON Nov-20-2020 $125 #CoveredCalls // Nov-27-2020 110 @1.50 Credit.
Was earlier today and I could have probably gotten a bit more if I’d have waited.
SPX 7-dte
#SPX7dteLong Bought to Open $SPX Nov 25th 3615/3635 call spreads for 9.50, with SPX at 3610. Taking only call side for expiry one week from today, based on Upside Warning and usual lazy bullishness around a holiday week.
TQQQ
STO January 15, 90 put at 2.75, could have done better.
TQQQ
#ShortPuts – IV is jacked up nicely out around Inauguration day. Throwing this out as a starter hoping to add some lower…
Sold TQQQ JAN 15 2021 80.0 Put @ 2.00
Bring out your dead AAL WFC
Not dead yet
VXX Contango Special
Bought to open VXX Jan 21 2022 6 Puts / Sold to Open VXX Nov 27 2020 17.5 Puts @ 0.12 Credit.
Short DTE = 9
Long DTE = 429
https://www.zerohedge.com/markets/vix-has-new-event-nemesis
Closing TGT
BTC 12/4 155/177.50 strangle (earnings trade) @ 1.87. Sold for 4.11 yesterday.
SNOW
#ShortPuts – Bought to Close SNOW NOV 20 2020 230.0 Put @ .14 (sold for 2.80)
WKHS FTCH Put Closed
$WKHS BTC 11/20 20 put at .20. STO at $4.00 on 9/25
$FTCH BTC 11/20 41 put at .10. STO at $2.05 on 11/12
NVDA earnings analysis
#Earnings $NVDA reports tonight. Below are details on earnings one-day moves over the last 12 quarters.
Aug. 19, 2020 AC +0.02%
May 21, 2020 AC +2.86%
Feb. 13, 2020 AC +7.02%
Nov. 14, 2019 AC -2.66%
Aug. 15, 2019 AC +7.25% Biggest UP
May 16, 2019 AC -2.28%
Feb. 14, 2019 AC +1.81%
Nov. 15, 2018 AC -18.75% Biggest DOWN
Aug. 16, 2018 AC -4.90%
May 10, 2018 AC -2.15%
Feb. 8, 2018 AC +6.69%
Nov. 9, 2017 AC +5.26%
Avg (+ or -) 5.14%
Bias 0.01%, no bias on earnings.
With stock at 537.00 the data suggests these ranges:
Based on current IV (expected move into Friday per TOS): 501.81 to 572.19 (+/- 6.6%)
Based on AVERAGE one-day move over last 12 quarters: 509.41 to 564.59
Based on MAXIMUM one-day move over last 12 Q’s (18.8%): 436.31 to 637.69
Based on UP max only (+7.3%): 575.93
Open to requests for other symbols.
NVTA Put Closed
$NVTA BTC 11/20 45 put at .60. STO at 3.61. Another batch hopefully will expire Friday.
TQQQ
BTC November 20, 85 puts at .01
#assignment WBA August 17, bought…
#assignment WBA
August 17, bought 100 shares at 41.11 and sold a 41.50 call with the purpose of picking up the dividend. I received the dividend and WBA started going down. I sold calls and puts 6 times, called away on a 38c call missing the dividend. I would have rolled except for the Amazon effect. Total profit of $91.75.
Upside Warning in effect
Look out above… The $VIX low closes have fired an Upside Warning on the #VIXIndicator. Expect continued higher levels on $SPX in the coming days or weeks.
NFLX FTCH Put Closed / BABA BECS Closed
$NFLX BTC 11/20 450 put at .40. STO at 3.40. Thank you @fuzzballl
$FTCH BTC 11/20 38 put at .08. STO at 2.00.
$BABA BTC 11/20 330/320 at .20. STO at 2.50
COST – Unbalanced Condor (closeout)
Original trade for a $0.01 debit:
BTO 1 x COST Nov 20: $385 /$380 long PUT Vertical @ $ 2.45 debit
STO 2 x COST Nov 20: $375 / $370 short PUT Vertical @ $1.22 credit (x 2)
Closed out both verticals for a credit of $1.50.
Happy to avoid the gamma mashup for the rest of the week.
SPX 1-dte
#SPX1dte Sold to Open $SPX Nov 18th 3520/3540-3660/3680 iron condors for 1.30, SPX 3609, IV 15.75%, deltas -.07,+.06
TGT earnings
Sold $TGT 12/4 155/177.50 strangle @ 4.11.
#Earnings #TastyTradeFollow
SPX 7-dte
#SPX7dteLong Bought to Open $SPX Nov 23rd 3595/3615-3625/3645 iron condors for 16.35, with SPX at 3620.
COST
COST announced today that its Board of Directors has declared a special cash dividend on Costco common stock of $10 per share, payable December 11, 2020, to shareholders of record as of the close of business on December 2, 2020.
#shortputs PYPL Sold Dec. 18,…
#shortputs PYPL
Sold Dec. 18, 170 put for 1.61. PYPL hasn’t been below 170 since mid July.
OSTK
#ShortCalls – Catching a bid for some reason. I had double sold these against some short puts so taking them off for the gain…
Bought to Close OSTK NOV 20 2020 62.0 Calls @ .35 (sold for 1.00)
EXAS
STO December 18, 100 puts at 1.15 with stock down to 117 today.
ABBV – Oven Baked Election Proof – update
Original setup:
On 09/09/2020: BTO ABBV stock @ $92.19
STO ABBV Nov: 90 call @ $5.25
BTO ABBV Jun 2022: 120 put : @ $38.42
ABBV pays a $4.72 per share dividend (5.1% yield).
Update: 11/17/2020: Stock is @ $99.70. A couple of short call rolls to the March 100 calls @ $5.62. (for essentially a scratch).
The stock is up $7.40 and the protective puts are down $7.00.
Payday comes when the short calls expire worthless (one day).
The setup is doing what it should do.
#rolling CHGG Rolled Nov. 20,…
#rolling CHGG
Rolled Nov. 20, 70 put to Dec. 18 for 2.15, stock is at 68.
WBA
Walgreens is down a big chunck today, apparently after an Amazon announcement.
#coveredcalls AAL Bought 100 shares,…
#coveredcalls AAL
Bought 100 shares, sold Nov. 27, 13 call for 12.08.
TSLA
#ShortPuts – Sold TSLA DEC 04 2020 400.0 Put @ 5.80
Still holding Dec 11 325.0 strike…
AMZN WBA
Amazon to sell RX Drugs.
WBA down 10%
DKNG Anatomy of a Trade
Here’s a Tasty Trade segment done today on how they managed the swings in DKNG to a profit, I thought it was a really good example of “what can be done” with a crazy stock. I’ve got DKNG collared, and am not quite net-profitable on it after the big drop, but I have (and continue to) collected a lot on the short hedges.
Sue
https://tastytrade.com/tt/shows/market-mindset?_sp=f133318e-0cd5-4c2d-a1bb-31c2e60b16b0.1605556482468
#closing #shortputs CCL Closed a…
#closing #shortputs CCL
Closed a Nov. 20, 20 put, originally sold June 9 as a June 19, 21 put. It was rolled 5 times, finally made about $150. CCL was as low as 12.11 on Oct. 29, hanging around 17.40 today.
Ignoring Gift Horse NVDA Covered call
$NVDA STO 11/20 550 call at 17.82. Covering shares assigned Friday at $535
SPY Roll
Bought to close 1 SPY Nov 16 2020 349 Call / Sold to Open 1 SPY Nov 20 2020 349 Call @ 0.52 Credit
#closing TTD Nov. 10, sold…
#closing #shortputspread TTD #shortputs XOM
TTD Nov. 10, sold a Nov. 27, 660/670 put spread for 2.10, bought today for .98
XOM Aug. 4, sold an Aug. 14, sold a Sept. 18, 40 put for .76, rolled it out twice, closed today, made $32 on the recent increase in price.
SPX trades
#SPX7dteLong Bought to Open $SPX Nov 20th 3600/3620-3630/3650 iron condors for 16.35, with SPX at 3627.
Expected for expiry today: Nov 16th 3580/3600 call spreads for max credit of 20.00, plus 1.00 I got for put side this morning. Condors bought for 16.68 last Wednesday.
#SPX1dte: Expected to expire worthless: Nov 16th 3475/3495-3655/3675 condors, sold Friday for 1.15.
#shortputs DKNG Sold Nov. 20,…
#shortputs DKNG
Sold Nov. 20, 40 put for .57. DKNG down today, apparently on the wrong side of the Baltimore/New England game
INTC
Sold INTC Nov 20 2020 47.0 Covered Call at $0.37 to replace the 46.50 Covered Call that expired Friday
PFE
Now trading down where it was before the vaccine announcement.
SLB Covered Calls
Sold SLB 11/20/2020 19.50 Covered Calls @ 0.26
Sold SLB 11/20/2020 20.00 Covered Calls @ 0.11 & 0.17
VXX new Long term Diagonal Puts
Can you say contango?
Bought to open VXX Jan 21 2022 6 Puts/ Sold to Open VXX Nov 20 2020 18 Puts at $0.07 Credit.
Bought to open VXX Jan 21 2022 5 Puts/ Sold to Open VXX Nov 20 2020 17.5 Puts at $0.05 Credit.
Long side = 432 DTE
Short side = 5 DTE
AAL
STO $AAL Nov-20-2020 13 #CoveredCalls @0.30.
OSTK
#CoveredCalls – Sold OSTK NOV 20 2020 56.0 Calls @ 1.60
SPX 7-dte
#SPX7dteLong Sold to close $SPX Nov 16th 3570/3550 put spreads for 1.00. Leaving the 3580/3600 call spread to expire for full 20.00 credit. This takes away my protection from am intraday drop, but market looking stable and Moderna news should keep us positive today. Condors bought for 16.68 last Wednesday.
ABT Covered Call Strategy Progressing Well
REGN BuCS – 9 Rolls and still a challenge
We have been tracking our REGN BuCS since it was established on Oct 12. It remains a challenge…..
https://coveredcallswithjeff.wordpress.com/2020/11/16/regn-bull-call-spread-a-challenge-so-far/
BX – Calls instead of Stock with Protection – test case
Started on July 10th 2020. BX stock price @ $53.60. Ended on November 13th 2020. BX stock price @ $56.16
Stock price range during the period was $50.65 low, $59.10 high. Trading within that channel saw a couple of strong up and downtrends (more rolling than I expected).
Opening transaction: Buy 1x Dec 18, 2019; 40 Call (cost $15.75) / 55 Put (cost $6.45) Long Strangle Stock Replacement + Put protection, debit cost $22.20.
Close out transaction was a credit of $17.40 ($15.64 calls, $1.76 puts) – so the Puts suffered more from time decay and a lower VIX (my assumption).
Over the period 49 Buy/Sell (split 50% Buy / 50% Put) transactions made with a net final total profit of $0.76 per contract (10 contracts = $760).
Strategy was selling 1x weekly calls and 0.5x weekly puts – rolling as required.
In this case, Buy and Hold w/o protection would have been a more profitable strategy.
A couple of takeaways, and it is relevant for a #sleepatnight strategy.
- DITM Collar trades pay off more to the downside (the combined short deltas of short calls + long puts) so great for an averaging down strategy.
- Overcoming time decay on the long puts is a challenge and a balancing act, particularly in a period of rapid stock price appreciation as one has to deal with both short calls and long puts being challenged.
- Depending on risk tolerance careful analysis is needed on the strike prices of the short calls and long puts in a collar trade.
TQQQ Closed Early / MRVL Put / Expirations
$TQQQ BTC 11/20 85 put at .10. STO at 4.70. Thank you @ramie77
$MRVL STO 11/20 42.50 put at .80
$NVDA Assigned at 535
SPY
Sold to open 1 SPY 11/18/2020 355.0 Call @ 5.02.
Sold against a 360 Call already long for 11/27.
This works best if SPY drops next week.
SPX 1-dte
#SPX1dte Sold to Open $SPX Nov 16th 3475/3495-3655/3675 iron condors for 1.15, SPX close at 3585, IV 13.7%, deltas -.06,+.06. Sold right AFTER the closing bell.
SPCE SLB AAL
Roll $SPCE Nov-20-2020 $30 #shortputs // Dec $30 #ShortPuts @.45.
Roll $SLB Nov-13-2020 $18 #CoveredCalls // Nov-20-2020 $.32
Expiring $AAL Nov-13-2020 14.5 #CoveredCalls Was STO @0.25
ADS Roll
Bought to close ADS 11/13/2020 65.0 Calls / Sold ADS 11/20/2020 67.50 Calls @ 0.70 Credit plus another 2.5 points on the short strike for only 1 week.
No earning or dividend to account for the very generous premium/strike bump.
Last VXX Put Roll
Bought to close VXX 11/13/2020 19.00 Puts / Sold VXX 11/20/2020 18.00 Puts @ 0.15 Credit but I dropped the strike price a full point.
I’m done with VXX for this week.
*Except for the short VXX calls that expire in an hour
KSS Roll into earning
Bought to close 1 KSS 11/13/2020 23.50 Covered Call / Sold 1 KSS 11/20/2020 24.0 Covered Call @ 1.02 Credit plus another $0.50 up on the strike price. (a nice fat time premium)
I’m letting my other 11/13 23.50 covered Call get assigned, partly based on my history with this stock.
I bought my first 100 shares on 3/13 at 23.19 just as the Covid decline accelerated . I’m letting those shares go.
I bought a 2nd 100 shares on 04/02 at 11.65. I didn’t get the dead low but did pretty well on that buy.
I’ve been sell covered calls all the way up on both lots and have been tempted to get out many times since my shares got above my average cost of 17.42.
I figure whatever happens next week I’ll be happy. It the stock is up, at least I still have some, if it is down, at least I sold some.
TDOC
#ShortPuts – Similar to NFLX. It’s been weak but nicely profitable so resetting…
Bought to Close TDOC NOV 20 2020 170.0 Put @ 1.75 (sold for 4.00)
Sold TDOC DEC 04 2020 162.5 Put @ 2.95
WBA
Rolled some covered Calls out to attempt to capture next week’s 0.4675 per share dividend on 11/18.
Bought to close WBA 11/13/2020 38.50 Covered Calls / Sold WBA 11/27/2020 38.50 Call @ even money
Bought to close WBA 11/13/2020 41.0 Covered Call / Sold WBA 11/20/2020 41.0 Call @ 0.12 Credit.
WBA is at 42.42
NVDA
#ShortPuts – This one got caught in the early week tech selloff and never could quite recover. Rolling into earnings week…
Rolled NVDA NOV 13 2020 535.0 Put to NVDA NOV 20 2020 505.0 Put @ 1.05 credit (3.35 total now)
NFLX
#ShortPuts – Looking a little weak so booking and resetting…
Bought to Close NFLX NOV 20 2020 450.0 Put @ 1.98 (sold for 5.00)
Sold NFLX DEC 04 2020 425.0 Put @ 2.60
Options Bistro 