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May 20 Covered Call Data Table
Cold and rainy here in Denver, good day to just look at data. I have an interesting report here for you on #CoveredCall performance, also tied to #PieTrades. Let me first lay out the process I took. 1. I ran a scan on TOS for high yielding calls over a 7-14DTE ( http://tos.mx/oIfUU7 DO NOT CLICK THE LINK, instead use your “Setup Sprocket” and “open shared item”, then copy/paste the link) . I ran it on “weeklies” so ETF’s would be included. That gave me about 108 tickers. Then I ran a 2-year covered call backtest using 10 lots on everything: Buying 1000 shares and selling 10 50-delta calls with a 7DTE on everything. From that test I selected only tickers that yielded over a 50% Return-on-Risk over the two year test. Then I figured that looking at the last 6 months on each of those vs 2 years would look quite different–given the market conditions we’ve experienced. So on just these tickers I also ran a 6-month backtest. Surprisingly there is only ONE ticker in the list that has a negative return over the last 6 months (RCL). “Win Rate” in the backtester means at expiration the trade had a net profit. At expiration the backtester virtually rolls calls to the next expiration using closing prices. There are no filters here for liquidity, other than using only weekly tickers with over 1M volume daily. Sorry the columns are wonky, I didn’t want to search out the BB code for table inserts 🙂 This might give some good ideas to y’all for #PieTrades or #CoveredCall targets. With the filters I used almost any one of these would be a good pick, but there are some standouts.
Ticker: 2 year net return: ROR%: Win Rate: 6-month ROR%
ADBE $81,890 69% 82% 29%
ADSK $58,780 86.1% 81.5% .9%
AMZN $507,000 64% 70.5% 28.7%
ANDV $48,953 64.6% 74.3% 14.5% SCRATCH due to acquisition
AXP $29,913 56.9% 73.3% 4%
BA $147,000 77.6% 76.2% 36.1%
BURL $58,460 85.1% 82.1% 41%
CME $54,932 56.1% 70.5% 23.4%
EA $61,020 93.4% 75% 33.8%
HCA $35,878 69.6% 71.4% 38.5%
IWM $36,640 43.9% 72.4% 8.2%
KSU $44,723 76.5% 69.5% 15.6%
LULU $29,725 59.2% 67.6% 58.5%
LYB $39,646 60.1% 72% 10.7%
MA $60,176 61.7% 75.2% 22.1%
MAR $51,397 68.1% 79.3% 19.1%
MON $76,134 115% 80% 32.5% (scratch due to Bayer takeover)
NFLX $1.49M 129% 60.6% 30.1%
NOC $92,967 50.8% 78.9% 10.4%
NOW $98,575 113% 76% 35.4%
NSC $54,856 67.5% 72.4% 14.3%
NVDA $121,000 95.1% 76.2% 18.9%
PSX $43,519 67.7% 78.1% 21.7%
RCL $40,886 58.5% 72.9% -8.9%
RHT $60,550 71.9% 79.2% 27.7%
SPGI $60,780 59.3% 76.3% 21.1%
STZ $65,779 55.4% 85.7% 14.8%
TQQQ $151,000 83.8% 71.4% 10.9%
TTWO $50,260 85.9% 82.4% 4.3%
TXN $30,708 51% 74.3% 2.9%
UNH $65,685 51.8% 74.3% 12.3%
UNP $48,904 64.5% 74.3% 20.2%
V $39,786 59.7% 77.1% 12.5%
VLO $47,877 72.6% 78.1% 30.4%
WDAY $67,845 88.3% 75.2% 13.3%
WYNN $68,710 67.8% 67.6% 24.6%
Forgot One Expiration ANET Short Put
#optionsexpiration
$ANET 230/240 BUPS Thank you @thomberg1201
It’s about time…
https://tinyurl.com/y8mttqkt
A TT “WDS” segment with Tom Sosnoff and Howard Tullman. ” Unlike some of our other trading newbies, Howard is a bit older with a bit more capital and, subsequently, a different set of objectives. Follow along as Tom shows him the ropes!”
…the time remaining.
Expirations / Rolled SQ Puts / Closed A Puts Early
#optionsexpiration
Full Profit
$SPX 2515/2540 BUPS Thank you @jeffcp66
$NFLX 300/310 BUPS Closed half the trade on 5/14 Let this tranche expire. Goodness I was prudent!
$TSLA 240/250 BUPS
$URI 150/160 BUPS
$AMZN 1310/1360 Thank you @jsd501
$BA 300/310 BUPS
$SPX 2605/2630 Jeff
$RF 21 calls (Covered)
$NWL 28 call (Covered)
$CBOE 106 call (Covered) Called away. Kept it too long Basis 108.80
$A 75 call Earnings Trade Thank you @jeffcp66
$WYNN 172.5 put Call side of strangle closed earlier Thank you @fuzzballl
$MTCH 36 put
$MU 49 put
Todays Activity
#shortputs
Rolled
$SQ 5/18 BTC 51 put and STO 6/15 50 put for extra .80. Rolls have taken in nearly 9.00 per contract
Closed Early
$A BTC 5/18 65 puts at .50 STO as earnings strangle for .39 Strangle was profitable in total. Thank you @jeffcp66
I was out all day. Everyone have a pleasant weekend.
5/18 #OptionExpiration Expired ROKU 36…
5/18 #OptionExpiration
Expired
ROKU 36 Calls
AAOI 31.5 Puts
QQQ 172 Call
Assigned
NUGT 26.5 Puts
Have a great weekend all.
Options Expiration for May 18
$AGN 115 puts
$AGN 120 puts
$AGN 130 puts
$ALXN 90 puts
$CVS 55 puts
$REGN 280 puts
$CAT 140/130 BuPS
Taking a loss:
$COST 185/190/195 iron butterfly (put side had been rolled up–original trade was 170/175/190/195 iron condor). Total premium taken in 2.75/loss of 2.25.
Have a great weekend.
Expirations
AMZN BuPS
NFLX BuPS
Loss on SPX Call & Put 1SD Debit spreads
BBBY finally closed #Fuzzy with a bad loss on this one. 1 stupid trade by me.
Have a great WE Guys…
Have a great WE Guys & Gals
Final trades and Options Expiration, 5/18/18
#SPXcampaign
Sold $SPX June 14th 2795/2820 call spreads for 1.75
Sold $SPX May 31st 2650/2675/2750/2775 #CondorRoll for 6.70
#OptionsExpiration Expiring at full loss: Long 2770/2790 call spreads, bought for 1.29… Made a couple of profitable rounds with this spread but the remaining ones fizzled out.
#IronButterfly Sold to close $AMZN 1575/1600/1625 butterfly for .84. Bought for 2.95 on May 3rd.
#Earnings Closed remaining $A 65 puts for .75. Avg closing price: 1.10. Strangles (65/75) sold for .77 on Monday.
Closed $OLED May 18th 100 put for 5.70. Sold for 3.50 last week. In the hole on the rolls here… need to assess next week.
#VXXGame BTC $UVXY Jan 2019 70 call for .45. Sold for 6.50, avg price.
Expiring are long calls used as hedges, UVXY 40 calls (bought for .45) and 44 calls (bought for .21).
Expiring at full loss: a bunch of $VXX 30 puts, bought for the avg price of .12
#Assignment $AMAT 54.5 put, taking stock, will sell call next week. #PieTrades
Closing to avoid assignment
Bought to close $HOG May 18 42.50 puts @ .07 with the stock at 42.55.
FAS #Shortputs Rolled May 18th…
FAS #Shortputs Rolled May 18th 67 Puts out and down to May 25th 66 Puts for .65 credit. Originally Sold the FAS 5/16 for .50 and closed it at .32.
Amazon’s weakness today…
Amazon briefly hit session low after report that Trump pushed the USPS to double shipping rates https://t.co/IfTJ8e1NSp
— CNBC (@CNBC) May 18, 2018
#shortcallspreads TSLA bought June 15,…
#shortcallspreads TSLA
bought June 15, 320/330 for .71, sold yesterday for 1.22.
JWN #FallingKnife Sold $JWN Oct…
JWN #FallingKnife
Sold $JWN Oct 19 37.50 puts @ 1.00
EWZ
Getting interesting….no position yet.
#shortputs #fallingknife WBA, LB, TGT…
#shortputs #fallingknife WBA, LB, TGT
Closed some puts today including a quick .50 on the TGT trade from Wednesday, will look again after earnings next week (AMAT lesson learned).
DG
#LongCalls #LEAPS – Rolling to the week before earnings….
Rolled DG MAY 18 2018 95.0 Calls to MAY 25 2018 96.0 Calls @ .28 debit
#fallingknife #shortputs JWN Sold Oct….
Sold Oct. 40 put for 1.48, JWN down almost 10% to around 46 after earnings.
TSLA
#LongPuts #LongCalls #LongLEAPStraddles – Light day today. A little TSLA adjustment here. Rolling puts and calls down into a Jun 1st short straddle.
Rolled TSLA MAY 18 2018 297.5 Puts to JUN 1 2018 292.5 Puts @ .73 debit
Rolled TSLA MAY 25 2018 295.0 Calls to JUN 1 2018 292.5 Calls @ 2.25 credit
KOLD closed
#ContangoETFs BTC $KOLD Aug 60 calls for .15. Sold for 1.50 and 1.75 in March.
Spamming
Click Home/REFRESH if you’re still seeing the spam comments.
AMZN
STO May 25 1550/1547.50 Puts .60 #Bitty
#rolling #shortputs AMAT Rolled May…
#rolling #shortputs AMAT
Rolled May 18, 54.50 to June 22, 54 put for .14
#pietrade Guess my first attempt…
#pietrade Guess my first attempt with AMAT is off to a bad start… Am getting ready to sell calls
AMZN
The big thing I’ll be watching today is AMZN, since I have an ITM naked put on it. Last Friday watching it pin 1600 was a beautiful thing. There is adequate OI on the 1600 line today to support a move back up there again. If I’m going to keep playing AMZN it’s got to be done more safely, with one of our stock replacement structures. If I do take assignment, I’ve designed a “#SharkFinHedge ” that has a max loss of about 1/3 of my next call sale to provide about another $10 downside along w/ the new call sale for next week. Here’s what the hedge looks like: May 25 1565/1555/1550 broken wing put butterfly for about $2.00 debit. Keeping these tight with DTE means they move more quickly with underlying price movement. I also will sell calls near the close in advance of assignment. Stay tuned!
CPB adding some Nov
Sold $CPB Nov 16 31 puts @ 1.10
DE closed
#Earnings Closed $DE May 18th 140/135 put spreads for .05. Sold for .85 yesterday.
Good morning
I only have 1 expiration today which is an AMZN 1310/1360 bull put spread. I have been covering my put exposure when they get down to 5 or 10 cents. GOOGL could be interesting today because 60 minutes is going after them. I will look at that after the opening and perhaps another bull put spread. Other than that, I think interest rates are important and they are going higher IMHO. So other than my Fuzzy trades I have nothing to do. I will be going to the GYM after 10AM. Have a nice day.
Long COST Calls / SPX Campaign /
#longcalls
$COST BTO 6/15 193 calls at 8.60
#spxcampaign
$SPX STO 5/25 2775/2750 BECS at 4.80 Thank you @jeffcp66
$SPX STO 6/15 2565/2590 BUPS at 1.65 Thank you @jeffcp66
Music of the Week
Jeff, is this a new feature? Love it!!
Shoot it disappeared, it was in the right-side column.
Let me add a couple trades on here so this post has some bit of use:
CRM: rolled calls from May 18 to May 25. $131 stock assignment now has a cost basis of $127.20 #PieTrades
BA: Rolled puts on a put diagonal from May 18 to May 25, Cost Basis on a long put diagonal has moved up from 324.20 to 331.45 due to income collection. 64 days left on the trade for income collection.
GRUB: Took 70% profit on short puts for tomorrow and flipped the trade to a Jan 2020 Leap (100/100/90) with Jun 1 short calls. Leap core @ 21.60, Jun 1 106 calls @ 1.80.
In play for tomorrow:
AMZN Naked Put @ 1600, cost basis is 1578
NFLX Covered Call ITM, cost basis is 322.85 on a $330 assignment #PieTrades
NVDA ITM Naked Puts @ 257.5, cost basis is 250.69 #PieTrades
NTNX ITM Covered Call, not sure cost basis
LMT Jade Lizard is still in the sweet spot for nice profit
GUSH…living up to its name
Sold $GUSH Dec 21 57 call @ 6.00
Adding to position at the highest strike
SPX puts sold
#SPXcampaign Sold $SPX June 14th 2590/2565 put spreads for 1.65.
#shortputspread #bitty ANET Bought May…
#shortputspread #bitty ANET
Bought May 18, 230/240 for .30, sold May 10 for .95
Trade jitters again
BREAKING: President Trump says he doubts that trade talks with China will be successful https://t.co/vccLO1oIe9
— CNBC Now (@CNBCnow) May 17, 2018
DE earnings
#Earnings Fairly bullish history on earnings, with small drops and big gains.
Sold $DE May 18th 140/135 put spreads for .85. Biggest UP move: 13.5%, Biggest DOWN move: -8.1%, Average move: 5.9%. This trade is -6.3% OTM.
Kicking A
#Earnings Starting to peel off $A 65 puts at a small loss… big rally today but don’t want to leave full position on overnight with risk of early assignment or a big drop tomorrow. Won’t work for #PieTrades or #CoveredCallCampaign since there are no weeklys and weak premium.
Closed $A May 18th 65 put for 1.23; 65/75 strangles sold for .77 on Monday.
NFLX
BTO May 25 310/312.50 Call spread #DIM
Deep in the Money call spread.
LRCX, CVS, OLED
LRCX, BTC June 15, 130 puts @.05
CVS, BTC May 18, 60 puts @.01
OLED, BTC June 15, 75 puts @.10
EWW
#SyntheticStock – BTC EWW May18’18 48.5 calls for 0.03, sold for 0.31. STO EWW May25’18 47.5 calls for 0.31.
#shortcallspreads TSLA Can’t stay away,…
#shortcallspreads TSLA
Can’t stay away, June 15, 320/330 for 1.21. As crazy as TSLA can swing, I’ve found options easy to roll.
Liz and Jny #BackRatios I…
Liz and Jny #BackRatios
I highly recommend watching this video from yesterday’s TastyTrade show. I have been missing a lot of TT in the last few months, but by total accident I caught this segment yesterday. This isn’t your normal backratio. They have found a design that mimics stock 1:1 for a fraction of the expense/risk. It works for both long and short setups. I have immersed myself in this design for the last 24 hours using all different kinds of ratios to get close to a 1:1 delta. Put this in the bucket of long call diagonals and fuzzies for stock replacement, but still with income potential.
The key to their design is you sell 1 ATM call or put, then look to buy 2 ITM where the intrinsic will cover the credit received on the sell. If you do a 1×2 you are free to sell “1” in a front month for income, and be risk defined. Use your risk graph to massage the ratio until you get the delta you seek. 3×5, 6×8, 3×4, you get it.
Here is an example from me this morning: I had on 2 naked puts for MA for tomorrow expiration, risk was over $38,000 on 200 shares of stock. I wanted to redesign a trade with $5,000 at risk. I closed those puts for 60% profit this morning and opened an October 8×6 back ratio. I sold 6 190 calls and bought 8 185 calls, the resulting delta is a little less that owning 200 shares of stock. In addition I sold 2 (8-6=2 for risk defined income) May 25 195 calls for .76. My total risk in this trade is $4821 and it will move almost 1:1 with stock.
Sue
https://www.tastytrade.com/tt/shows/calling-all-millionaires/episodes/calling-all-millionaires-05-16-2018
Done sitting on my hands,…
Done sitting on my hands, theta did it’s thing.
#pietrades
MAR 139 put expires tomorrow rolled out to next week for 0.81 credit. Cb now 137.08 if assigned.
GM CC expires in 3 weeks 37.5 cb 37.72 but if ITM good bye finally. That will be 22 weeks in the trade to almost scratch it. The money will be put to better use somewhere else!
BTC MU 52.5 put for 0.04 sold for 0.63
STO LABU 85 put at 1.45. cb 83.55 if assigned 8 DTE
STO LABU 85 put at 1.2. Cb 83.8 if assigned 8 DTE
AMAT 55 put should be assigned tomorrow at 54.02 cost basis. Will flip to CC on Monday.
BTC AAL 42 put at 0.04 sold for 0.53
AMAT 52.5 put should expire tomorrow, cost basis 50.80 even if assigned. Reload monday.
#spycraft 22 DTE PCS at 265/262 was sold for 0.24. Just waiting another 1-2 weeks for some decay to erode it then will roll it.
Will only have 2 trades for Monday, then sit on my hands again until Thurs or Fri depending on what the market gives us.
Raining here but still going out to bike, have a good expiration!
ERX #Shortcalls Closed my May…
ERX #Shortcalls Closed my May 18th 42 C for .65 as soon as the price breached 42. Originally sold for .45.
Short Puts ANET / SPX Campaign / Roll MZOR / Closed NFLX
#shortputs
$ANET STO 5/18 230/240 BUPS at .75 Thank you @thomberg1201
#spxcampaign
$SPX STO 6/15 2835/2810 BECS at 1.65 Thank you @jeffcp66
#rolling
$LABU BTC 5/18 83 call and STO 6/1 88.5 call at 1.00 debit (gained potential 5.5 points if called. Current price 91.90)
$MZOR BTC 5/18 70 put and STO 6/15 70 put at .70 added credit Now if the stock could start rolling upwards. Good thing that all these rolls are keeping me from gathering moss. (Sorry)
Closed Early
$NFLX STC 5/18 300/320 BUCS at 19.50 BTO on 4/9 at 8.40 But I did bite my nails on occasion.
TGT
#shortputs
Sold to Open $TGT June 15 77.50 puts @ 4.00. If assigned CB 73.60, shares selling at 74.96ish also take 3.31%, .62 div.
NOC
#LongCalls #LEAPS – Another week…
Bought to Close NOC MAY 18 2018 330.0 Calls @ .20 (sold for 2.30)
Sold NOC MAY 25 2018 327.5 Calls @ 1.80
Adding another GUSH
Sold $GUSH Sep 21 57 call @ 2.50. Highest strike.
#earlyassignment #coveredcalls TLT Assigned on…
#earlyassignment #coveredcalls TLT
Assigned on a May/June 121 put calendar, sold the June put, then sold a June 15, 120 call, cost basis of 116.94.
May 16 SPY Put Roll
I had a lot of 273 naked puts for today’s expiration (BTW, I love using Wed expiration for assignments so I don’t have to wait for over a weekend to hedge in 401K accounts. In non-401K I will sell calls in advance of assignment but you can’t do that in 401K accts). I was able to cover my puts for 25% profit today, then I flipped them to #BigLizard trades.
SPY May 23 -272.5p/-272.5c/+273.5c for 2.03 cr. Doing a Lizard brought in 25% extra premium vs. doing an ATM put only. Break even is 270.47 on these.
It looks like I will get an assignment on $274 SPY shares. Rather than sell calls-only against that position, I will explore a reverse Jade Lizard to bring in some put revenue, similar to a covered strangle, but less risk. I’ll update this after the close.
Sue
Calls sold
#Earnings #Rolling Sold $OLED June 15th 110 call for 1.95
#CoveredCalls #CoveredCallCampaign Sold $SQ June 15th 60 call for 1.40
QQQ
OLED
#LongCalls #LEAPS – Slow day today. I really like the premiums and rollability of this ticker. I’m in a tiny 2019 position so adding a little more out in 2020. I’ll add more when (if) I get the 2019’s covered but for now…
Bought OLED JAN 17 2020 105.0 Calls @ 26.90
Sold OLED MAY 25 2018 104.0 Calls @ 1.70
Payoff by Jan 2019 and Jan 2020 is .74/.30
SPX calls sold
#SPXcampaign Sold $SPX May 25th 2745/2770 call spreads for 5.80. This offsets aggressive put spreads sold for this expiry last week.
EDIT: strikes were previously entered incorrectly as 2750/2775
TQQQ
In my IRA, BTO 2020 165 calls and sold June 29 170 calls for a debit of 36.20 so I need .42 cents per week to break even.
APA
BTC October 22.5 puts @ .05
DBX #Coveredcalls Started a covered…
DBX #Coveredcalls Started a covered call on DBX. Late to get it on but bought stock @ 30.75 and sold the May 25th 31.50 calls @ 0.55.
BABA covered call
#CoveredCalls #CoveredCallCampaign
Sold $BABA Jun 22nd 215 call for 2.00.
MU #Shortcalls Closed my May…
MU #Shortcalls Closed my May 18th 54.5 call @ 1.72 when MU was at 55.81 just after the open. I have a feeling the upgrades will keep the price up. Depending on how the stock trades I will keep my long June 50 call uncovered.
Good morning
May 15–LMT
Not a ton of activity today, I have on enough ITM naked puts that I need to see what shakes out this week before taking on anymore risk.
LMT: I’m still stalking a share assignment for dividend (2.00 div on 5/31) (you guessed it…for Daddy! The “D-word” makes his old eyes light up). Turns out I’ve made way more than the dividend by stalking the dividend, which is as it should be. I’ve done 3 rounds of ratio spreads now, all closed for 70-80%. After closing a 3×5 spread for this week, I put on a #BigLizard #JadeLizard . A Big Lizard is a Jade Lizard using the same strike short put/calls (straddle) plus the protective call. Like a Jade Lizard, if done for a credit greater than the width of the call spread there is no upside risk. By adding the call credit spread onto the naked put, additional premium is collected pushing down that lower break even. I really wish I’d done more Big Lizards this week on stuff vs. naked puts. Here’s my trade:
May 18 -320p/-320c/+322.5c for net 3.62 cr. Since 3.62 is greater than the $2.50-wide call credit spread, there is guaranteed profit to the upside, no upside risk. The break even is figured by simply subtracting net credit from the put strike: $320 – $3.62 = $316.38. I’m running all my LMT’s with 3 contracts.
Sue
Rolling MTN / Closed Early SPX / Short Puts AMZN
#rolling
$MTN BTC 5/18 240 call and STO 6/15 250 call for additional .80 and gain potential 10 points
Closed Early
$SPX BTC 5/18 2745/2720 at 6.00 STO at 2.45 Took advantage of today’s dip. Whew!
#shortputs
$AMZN STO 6/15 1460/1500 BUPS at 4.68
SPX trades
##SPXcampaign Sold a couple before and after the closing bell.
Sold $SPX June 1st 2625/2650/2750/2775 #CondorRoll for 8.00.
Sold $SPX June 14th 2810/2835 call spreads for 1.60.
Taking some profits
Bought to close:
$CMI Jun 15 120 put @ .15. Sold for 1.60 on 11/17.
$KR May 18 25 puts @ .43. Sold for 1.31 as a rollout on 4/20. Overall profit on the position .42.
$CI Oct 19 135 put @ .80. Sold for 3.00 on 3/13.
TQQQ FUZZY
Rolled May 25, 162 calls to June 29 162 calls for a credit of 4.95 against my 150 calls in 2020. I am done rolling until June 15 when I may roll out to 45 days again. Now I am going to the gym. Back tomorrow morning in Option Bistro.
TQQQ and TNX
With the TNX breaking the 3.00% level I see the next stop at 3.60% and then 4.00%. So what does that mean for the TQQQ and market in general? The top of the trading range was 190 and the two corrections this year took us down to 130.If we break 130, I can see the TQQQ down to 70 since this is triple leveraged. The RSI has turned down but is still above 50 and the stochastics are still above 80 but have turned down. I can only say that at the 70 level, I like them a lot.
#earnings #shortstraddle M Following Mike…
#earnings #shortstraddle M
Following Mike at TastyTrade, sold June 15, 30 straddle for 3.59
BABA
Rolled May 18, 200 call to June 29, 202.5 call for a credit of 4.17. This is my 2019 200c,200p,195p fuzzy. I would like to get out of this one because the expiration is too short and I think the 2020 would be a lot better.
#shortputspread #bitty ANET Sold May…
#shortputspread #bitty ANET
Sold May 18, 230/240 for .75
#shortputspread #fallingknife WYNN Sold June…
#shortputspread #fallingknife WYNN
Sold June 15, 170/180 for 1.37
AMZN
Would like an opinion on a trade I may make.
BF Jun 1 25 1580/1600/1620 now at 2.25 looks like interesting R/R
any comments would be appreciated.
Did it for 2.30
DIS
STC May 18 99/100 call spread paid .53 5/9 .96 #Bitty profit
ULTA
BTO May 25 247.50/250.00 Calls 1.30 earnings 5/31 usually runs up into earnings.
#Bitty
Chinese Market
Chop Chop
Dec GUSH
Sold at the highest strike.
$GUSH Dec 21 57 call @ 4.00.
