#SPXcampaign Sold $SPX June 22nd 2610/2585 put spreads for 2.30, with 1.33x-position size. Not much lower on the strikes than the spread this replaces, but it’ll do.
Recent Updates Page 319
Rolling CPB
$CPB Jun 15 37 puts out to Jul 20 37 puts for .45 credit
Good Morning
Good Morning
UVXY calls
#VXXGame Yesterday, Sold $UVXY July 20th 20 calls for 1.20.
SPX trades
#SPXcampaign These two also got stopped yesterday, orders filling on the end of the day bounce. The May 31st one kinda sucked, since it is much cheaper this morning, but it was too close to expiration to risk a further drop. I am mapping out rolls for everything today… some in calls, some in puts, some in condors.
Stopped: $SPX May 31st 2675/2650 put spreads for 6.50. Sold in a #CondorRoll for 6.70.
Stopped: $SPX Jun 14th 2610/2585 put spreads for 2.90. Sold for 1.65 on May 14th.
AMZN Long Calls / SPX Campaign / SQ Rolling
#longcalls
$AMZN BTO 7/20 1600/1630 BUCS at 16.35
#spxcampaign
$SPX STO 6/8 2625/2650 BUPS at 2.80
$SPX STO 6/22 2800/2775 BUPS at 2.50
$SPX STO 6/22 2595/2620 BUPS at 2.60
$SPX STO 6/15 2675/2700 BUPS at 7.60
$SPX STO 6/22 2550/2575 BUPS at 1.35 Thank you @jeffcp66 for all.
#rolling
$SQ BTC 6/15 50 put and STO 6/15 55 put for .98 added credit
Afternoon all Playing a bit…
Afternoon all Playing a bit of catch up here
on Wednesday#spxcampaign
Last week I mucked up my SPX spread as I was needing to be away and closed the short June 15th 2800 call on the upswing. Originally sold for 2.30 and closed at 2.95. Oops. I resold the position today @ 1.15.
#coveredcall
I was assigned FAS at 68 last Friday and sold June 1st 66 Calls against today for 0.42.
#LEAPS
Covered my long Jan 2020 36 Call with June 1st 38.50 for .20.
#longcalls
I tried to do an early assignment of my measly 1 MU June 15th 50 long call as I wanted to sell most of the stock this morning but keep a few shares for a longer term position. The gods of ToS wouldn’t let me as it was not deemed economically the best thing to do. They suggested I sell the call and buy the stock. I wish their gods would intervene when I place a bad trade. Life would be so much better. Maybe they are right but I was under the impression I could think for myself and do my own trading. So I will wait for assignment and sell most of the stock before earnings. Hopefully it will still be profitable.
Catch everyone tomorrow.
May 29 Trades
Just two little trades today:
1. GRUB calls on #Fuzzy Leap decayed to .12 so rolled to Jun 15 106. Pocketed $800 in the roll, which is 5.1% of risk (Return on Risk) in 12 days.
2. TWTR #CoveredBackRatio Sep 30/33 12×8 @8.94 (Total risk = $8.94×400=$3,576). Sold June 8 34 calls @ .73, short call = 8.2% RoR. TWTR position is equal to $32.86 stock price, current price is $34.10.
SPY SHY TLT and the Golden Butterfly
#401k #LongStock – I tried following a long term plan (The Golden Butterfly) that would probably work but I’ve decided I can do just as well or better selling puts on imploding stocks so I’m dumping these sizable positions while they’re green. Unloaded SPY back on May 18th and now unloading the bond positions on this rally. Freeing up a ton of buying power…
Sold SHY stock @ 83.60 (bought for 83.51)…decent gain since it was a lot of shares…
Sold TLT stock @ 122.12 (bought for 120.74)
ERX
#ShortPuts #IRA – Starter position…
Sold ERX JAN 18 2019 25.0 Puts @ 2.02
New downside warning
#VIXIndicator… for perspective, when this happened on Feb 28th (another warning firing a few days after the previous one had been canceled), the SPX closed at 2713. We hit the low of 2553 on April 2nd, so a full month later. During that month, we also reached a high of 2801.
SPX
it seems -40/-50 becoming a norm. Now it is this: US announces timeline for 25% tariff on Chinese tech products
SPX trades
#SPXcampaign STOPPED: $SPX June 22nd 2620/2595 put spreads for 4.10. Sold for 1.70 on Thursday.
Closed on GTC order: SPX June 14th 2810/2835 call spreads for .20. Sold for 1.80 on May 15th.
I will probably be stopping a couple more put spreads before the close, especially if no rally develops soon.
SPX calls closed
#SPXcampaign. Closed on GTC order: $SPX June 1st 2750/2775 call spreads for .40. Sold in a #CondorRoll for 8.00 on May 15th.
Dump
Looks like I picked the wrong hour to be away from my desk!
UVXY
#BearCallSpreads – Sold UVXY JAN 18 2019 12.0/17.0 Bear Call Spreads @ 1.15
VIX is up nicely :)…
VIX is up nicely 🙂 that will be good for rolling and expiration on Thurs./Fri.
EWZ
#LongCalls #LEAPS – Second batch closed this expiration. Selling 70 percent of next batch for no upside risk if this thing rebounds…
Bought to Close EWZ JUN 1 2018 38.0 Calls @ .04 (sold for .32)
Sold EWZ JUN 15 2018 37.0 Calls @ .50
EWZ
#ShortPuts #IRA – I’d take a shot down there…
Sold EWZ DEC 21 2018 30.0 Puts @ 1.69
OLED
#LongCalls #LEAPS – Small debit roll picking up 3.40 of upside…
Rolled OLED JUN 1 2018 99.5 Calls to OLED JUN 29 2018 103.0 Calls @ .10 debit
UVXY
#BearCallSpreads – In two different accounts…
Sold UVXY DEC 21 2018 20.0/30.0 Bear Call Spreads @ .86 and .85
EWZ
BTO Jun 15 36.5/38.5 Calls .75 2x
NFLX
STO Jun 1 342.5/340.0 BuPS .28 #Bitty
WYNN
STO Jun 15 200/202.50 BeCS .59 #Bitty
AMAT covered call
#PieTrades #CoveredCalls Sold $AMAT June 1st 52 covered call for .75.
SQ covered call
#CoveredCalls #CoveredCallCampaign
Sold $SQ June 29th 61.5 covered call for 1.60
OLED, boom!
iPhone may use their screens… https://seekingalpha.com/news/3359877-universal-display-plus-12_4-percent-iphone-oled-report
Italy this time
#VIXIndicator In pre-market we have a signal on the VIXIndicator which indicates to be wary of new downside risk, this time due to Italy’s political crisis causing a big drop in the Euro. Whether we get a new Downside Warning will depend on the VIX closing price.
Good Morning
Good Morning
Econ Calendar for week of 5/28/18
May jobs report is Friday at 8:30am ET.
Be sure to periodically click “Home/REFRESH” to keep Bistro features updated.
Even on “market days off”…
Even on “market days off” my routine is the same, by 4:45 AM I’m viewing the screen for the first look of the coming financial day. Hmm…it didn’t happen this morning, I returned to bed, when I did return to the computer my mind began to wander, routine interrupted, maybe a good thing? As I know you will all want to get back in the driver’s seat early tomorrow, unless you are flying around somewhere, here is a little sidebar for traders trading.
Enjoy the day and God Bless our service men and women. See you tomorrow.
Latticework of Mental Models: Hot Hand Fallacy
https://www.safalniveshak.com/latticework-of-mental-models-hot-hand-fallacy/
May 27 TWTR idea #coveredbackratio…
May 27 TWTR idea #coveredbackratio
I goofed on that last message that went out, I had a lock on pricing and needed to change the % below:
Found a good trade here on TWTR, the return on risk is annualized at over 210% (selling 14DTE calls) vs holding shares (CC) @ 57%. Evaluating these trades based on ROR makes them compelling.
1. Sep Backratio: +12 30 calls/ -8 33 calls, @9.15, for 400 equivalent shares, max risk = $3660 vs $13,452 holding 400 shares. The BackRatio deltas are 391 on a 400-share stock replacement.
2. Then sell 14DTE calls, the June 8 34 call @ .74 (x4). $296/$3660= 8% per every other week, *26 weeks = 210% return.
TWTR just joined IBD big cap 20
LABU and….
Just stumbled across this…LABD is the bearish version. Weeklies available and a reverse split already in the books. Could be one to watch for a short entry on the next biotech selloff. Maybe buy some 2020 puts and sell weekly against them. Not a ton of liquidity but spreads aren’t terrible.
FWIW…
Have a great long WE
Have a great long WE
Expiration and More Importantly Happy Memorial Day
#optionsexpiration
$GS 242.50 call
$FB 187.50 call
The best to all at the bistro and especially to all those
who serve or have served our country.
God Bless America
SPX calls sold
#SPXcampaign Sold $SPX June 22nd 2795/2820 call spreads for 1.70. No upside warning so I’m still selling both sides of this market.
Closed Early SPX / SPX Trades
#spxcampaign
Closed Early
$SPX BTC 6/8 2800/2775 BECS at 50% of max profit.
$SPX BTC 6/15 2835/2810 BECS at 70% of max profit. Thank you @jeffcp66
#spxcampaign
$SPX STO 6/22 2595/2620 BUPS at 1.95
$SPX STO 6/15 2675/2700 BUPS at 5.70 Thank you @jeffcp66
AMBA
#LongCalls #LEAPS – Last one…squeezing in one more sale before earnings.
Bought to Close AMBA MAY 25 2018 50.5 Calls @ .08 (sold for .80)
Sold AMBA JUN 1 2018 51.5 Calls @ .91
TQQQ
BTO January 2020, 55 calls @ 15.22 and sold June 29, 60 calls @ .87 for a net debit of 14.35 and .18 cents per week to cover the trade.
JNJ
#ShortPuts #IRA – Thanks @Iceman !
Sold JNJ NOV 16 2018 115.0 Put @ 3.05
RTN
#LongCalls #LEAPS – The NOC replacement at twice the size…BTW this is Whiz’s favorite and he’s always right! 🙂 🙂
Bought RTN JAN 17 2020 220.0 Calls @ 22.50
Sold RTN JUN 8 2018 217.5 Calls @ 1.25
Payoff by Jan 2019 and Jan 2020 is .66/.25
NOC to RTN conversion
#LongCalls #LEAPS – Now that RTN has finally joined the weekly world I’m moving over there. It’s a little cheaper so I can do more contracts too. NOC needed a little pullback to get back to the top of the risk profile (max profit) and it got it today.
Sold NOC JAN 17 2020 330.0 Calls
Bought NOC MAY 25 2018 327.5 Calls
All said and done 17 day position booked 3.08 per contract (just a 2 lot here)
Upside Warning data
#VIXIndicator Looking less likely we’ll get an Upside Warning today, but in any case here’s an updated version of the chart I posted months ago. The blue bars with numbers on top represent the percentage move UP from the close of an Upside Warning day to the eventual SPX high before another pullback. The numbers at the bottom of each bar are the percentage move DOWN from the preceding correction, and the date of the Upside Warning. Please ask any questions you have! (you can click on the chart to see it full screen)
Question….
I can wait until the end of day and post these together all at once and avoid some clutter or I can post them individually in closer to real time. Am I posting too much? Fridays can be busy sometimes…just don’t want to irritate anyone. I like to add the details since it might help someone out there. Let me have it…I’ve got thick skin! 🙂 🙂
TQQQ
#LongCalls #LEAPS – Here’s the 2020 reset…
Bought TQQQ JAN 17 2020 55.0 Calls @ 14.60
Sold TQQQ JUN 1 2018 56.5 Calls @ .80 (sold 8 of 10)
Payoff by Jan 2019 and Jan 2020 is .42/.16 (assuming full sales)
EWZ
#LongCalls #LEAPS – Still selling less than max to control upside risk but still enough to cover cost by end of year…
Bought to Close EWZ JUN 1 2018 40.5 Calls @ .03 (sold for .40)
sold EWZ JUN 1 2018 38.0 Calls @ .32
AZO
#LongCalls #LEAPS – Was a little irritated at this one but the rally helped. Needed 657.75 to get even but didn’t quite make it. Short put was exercised a couple days ago. Sold the stock today for 633.95 with a basis of 657.75. Taking the 23.80 loss and rolling it into a Jan 2020 LEAP position. Only rolling one for one since these are pricey. I might consider adding another one on a big drop.
Once I calculated the final numbers it definitely looks doable and possibly even very profitable…
Bought AZO JAN 17 2020 640.0 Call @ 99.50 (basis 123.30 now)
Sold AZO JUN 1 2018 642.5 Call @ 4.10
Payoff by Jan 2019 and Jan 2020 is 3.61/1.40
#shortputs #shortcalls SPY tastyTrade video…
#shortputs #shortcalls SPY
tastyTrade video compain short puts and calls to long puts and calls over the last several years.
https://www.tastytrade.com/tt/shows/market-measures/episodes/directional-trading-with-naked-options-05-25-2018
ADSK
#ShortStrangles #LongCalls #LEAPS – A timely pullback today in this thing. Two different trades going and both sets of short calls were DITM. Selloff allowed for much better rolls to get all the positions back in the game.
===================================================
Position 1:
Selling weekly calls against longer term short puts that (used to be) deep in the money. Good chance to roll the weekly calls now.
Rolled ADSK MAY 25 2018 131.0 Calls to JUN 8 2018 133.0 Calls @ .25 credit
===================================================
Position 2:
Long LEAPS against short calls where short calls had gotten absolutely demolished. Using the weakness today to roll up the LEAPS and taking the credit to make a huge roll up of the weeklies.
Rolled ADSK JAN 18 2019 120.0 Calls to JAN 18 2019 130.0 Calls @ 5.90 credit
Rolled ADSK MAY 25 2018 122.0 Calls to JUN 15 2018 130.0 Calls @ 5.66 debit
===================================================
Assuming no more crazy rallies in this thing the weekly calls are now back in play for further selling….
DG
#LongCalls #LEAPS – Rolling out and up. Earnings next week so the premium helps on the roll…
Rolled DG MAY 25 2018 96.0 Calls to JUN 1 2018 101.0 Calls @ .02 debit
ROKU
@LongCalls #LEAPS – This was a short put repair trade I put on two weeks ago. Rolled those losses into the basis of this trade. Had to roll the short calls twice and they’ve reached zero deltas for a second time already so booking it.
Sold ROKU JAN 17 2020 35.0 Calls
Bought ROKU JUN 1 2018 37.0 Calls
All said and done made back the put losses and another 1.11 per contract on top of that. A nice 10 lot and recovery. Love this ticker….in and out quite a few times this year already. Waiting on the next pullback now.
DIS
BTO Jun 29 103/101 Put BePS .93 #Bitty
Expire today
AMZN 1545/1542.50 & 1550.00/1547.5 =85.00
NFLX 315.00/312.50 17.50
XLE
From a loss to a profit. Had 74/72 Put spread for today was way under water so yester day saw it turn over added a 77/74 Put spread any way was down 88.50 now closed for a 52.00 profit. Was a DK trade that I followed.
Learned how from you guys & gals.
5/25 Tying up the week!
NFLX: The market makers got $.05 on the close. A couple week’s worth of #PieTrades brought in over $1500. Reset with #CoveredBackRatio “Cobras”. Dec 305c x 3/Dec 350 c x-2 ($125.15) Plus June 1 357.5 call @4.01. For 100 delta/100 shares of stock replacement.
Stock cost basis is $342.65. Net risk right now $12K.
TQQQ: Added another tranche Sep 50c x 6/Sep 56call -4 for 200 share stock replacement, Jun 8 58 call @.60. Stock Cost Basis: $55.30, Net risk: $3400
CVX: Rolled down calls from June 1 130 to June 8 127, added an additional #BeCS. Pocketed $174 on the roll, but struggling to keep up with underlying decline. New basis = $125.11
IBM and CRM are still left to manage: IBM I will allow May 25 to expire and open June 1 $144 call closer to the close. CRM has earnings next week. I was hoping the stock would be called, but I will roll to ITM calls for next week.
BABA: Added another tranche. Oct 175c +4, Oct 195 call -2, Jun1 202.5 call -2
Everyone have a SAFE weekend!!! Don’t get too sunburned! Military folks THANK YOU A MILLION TIMES for your service. I heart you!
GLD
#LongCalls #LEAPS – Been in this awhile. Got caught in the December whipsaw but finally back where it started. Getting even and getting out is the goal here. Not a fan of GLD with weak premiums. On the bright side it’s out to 2020 so a lot of time…
Bought to Close GLD MAY 25 2018 124.0 Calls @ .05 (sold for .78)
Sold GLD JUN 8 2018 124.5 Calls @ .51 (70 percent size)
TQQQ
#LongCalls #LEAPS – After the split I’m booking my current position and resetting with the new strikes and using more even numbers and sizes. This was nicely profitable so a good time to adjust on the tiny dip right at the open…
Sold to Close TQQQ JAN 17 2020 50.0 Calls (150.0 pre-split)
Bought to Close TQQQ JUN 15 2018 52.0 Calls (156 pre-split)
Pounded down the basis really early in this one including originally buying the call spreads and then closing the short on the big drop.
All said and done a 7.07 gain on the pre-split number. Only a 4 lot but good enough!
Falling Knife
SLB #FallingKnife ?
Squeezing to explode, or collapse?
Interesting look at the VIX chart… I think today’s close will be telling.
Fascinating. Tags on both sides this week. $VIX pic.twitter.com/XpfPoGHlhh
— Sven Henrich (@NorthmanTrader) May 25, 2018
SPX long calls added
#SPXcampaign Added another batch of long $SPX June 15th 2825/2850 call spreads for .40. I now have a triple-sized position at avg price of .743
It’s a long shot, but no so outlandish as to be called a lottery ticket. I think we’ll get an Upside Warning today which gives us a good shot at a new all-time high on SPX. $RUT is already doing that, and $VIX is telling us these intraday swoons aren’t causing any panic.
GUSH blow off top?
#ContangoETFs $GUSH topped out early this week at 47, which triggered my rolling of several ATM positions… then it did what a ContangoETF is supposed to do… dropped dramatically. Bummer that its highs had to be right around my strikes, forcing the rolls. I rolled one into a strangle that may soon have its 31 puts breached. I waited on another, which was a mistake as it is now too low to roll into a higher call. Such is the folly with these ones destined toward zero.
Good Morning
Good Morning
Short Puts AMZN / Long Calls $SPX
#shortputs
$AMZN STO 7/20 1600/1620 BUPS at 9.75
#longcalls
$SPX BTO 6/16 2800/2825 BUCS at 1.00 Thank you @jeffcp66
NVDA
#LongCalls #LEAPS – Late fill…
Bought to Close NVDA MAY 25 2018 255.0 Calls @ .10 (sold for 2.59)
Sold NVDA JUN 8 2018 255.0 Calls @ 2.90
5/24 Trades
BA: This is a put diagonal that I have, I rolled puts from May 25 to June 1 and added an extra short put, collected $161 for the roll
BA in a diff account: Added a #CoveredBackRatio. @MamaCash has now dubbed these “Cobras” (from CBR). Nov 320/355 8×4, June 1 360 call @2.76, Stock cost basis is $352.83.
NTNX and VEEV: Closed both of these positions in advance of earnings, netting about $482 exclusive of previous rolls
IWM: Rolled calls from Jun 1 to Jun 8, the Jun 1’s didn’t have any juice left. Netted $150 on the roll
The only thing left for tomorrow is NFLX (share call), CRM (pennies away from share call, ER next week), IBM (roll)
Of the $11,613 in sold-premium that I started with for the week, it looks like $8,587 will be my realized amount.
Two down, one to go
#VIXIndicator Another somewhat volatile day capped with a plunging VIX. That’s two consecutive days below the Fib 78.6% line… if it happens again tomorrow we shall be entering next week with an Upside Warning.
WHR downdraft
Adding to my put ladder
Sold $WHR Dec 21 110 puts @ 1.40
SPX trades
#SPXcampaign
Closed $SPX May 25th 2700/2675 put spreads for .45. Sold as a #ReverseRoll for 7.60 on May 10th.
Sold $SPX June 22nd 2620/2595 put spreads for 1.70.
Sold $SPX June 15th 2700/2675 put spreads for 5.25.
#shortstrangles ROKU Sold June 15,…
#shortstrangles ROKU
Sold June 15, 32/40 for 1.05, TastyTrade/@Fuzzball idea
@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?
#shortputs KSS Bought June 1,…
#shortputs KSS
Bought June 1, 60 put for .15, sold Tuesday after earnings for .62.
ABBV
STO January 2019, 80 puts @2.05 with stock at 102.80
Going long the British Pound
Keeping with my #Currency theme this week:
Sold $FXB Jul 20 129 puts @ 1.05
FAS
#LongCalls #LEAPS – Here’s the 2020 reset. I’d prefer a bigger pullback but not sure when (or if) it will come.
Bought FAS JAN 17 2020 67.0 Calls @ 14.75
Sold FAS JUN 1 2018 67.5 Calls @ 1.02
Payoff by Jan 2019 and Jan 2020 is .42/.16
FAS
#LongCalls #LEAPS – Going through all my 2019’s and seeing what’s nicely profitable and looking at closing and resetting to 2020’s. Here’s the first one I came across. Weeklies were ITM and rolled out to July. Taking advantage of the weakness today to take this one off for a nice gain. Even though I’d reduced basis from 10.50 down to 4.50 in just two months I think I’ll feel better starting a new one in 2020. I’m finding the extra time is well worth the little bit extra it costs.
Sold to Close FAS JAN 18 2019 65.0 Calls
Bought to Close FAS JUL 20 2018 68.0 Calls
Net gain of 1.95 on a 10 lot in a couple months. Happily moving on….
Options Bistro 