#SPXcampaign
Closed on GTC order:
Oct 13th 2530/2505 put spreads for .20. Sold on Monday for 2.35
Oct 20th 2475/2450 put spreads for .25.
Closed Oct 18th 2480/2505 call spreads for 24.55. Sold a week earlier for 23.25.
#ITMroll Sold Oct 25th 2500/2525 call spreads for 23.25.
Was able to move up 20 points with only a 1.30 debit; when spreads are this deep ITM the premiums are little changed by moving up multiple strikes, so wider rolls are easier.
#Earnings #ShortPuts #LongStock
As noted last night $AAOI has taken its expected dump, one night before my 55 puts were to expire. Will consider my options based on today’s action.
I’ve been waiting for $HCA to recover but it’s taking a big hit today, along with all Healthcare ($XLV) since Trump is expected to cut ACA subsidies. I’m long some stock with #CoveredCalls
$AAOI now trading $44 – $47 after hours, No positions
#T
sto call spread 11.24.17 36/41.50/ @ .97
sto call spread 11.24.17 37.50/42/@ .41
if assigned on puts
already have call on
in ira account had to to make spread
#spxcampaign
$SPX STO 10/30 2460/2485 BUPS @ 1.05 Thank you @jdietz1954 for idea
Closed Early
$SPX BTC 10/16 2560/2535 BECS @ 15.00 STO 10/11 for 16.50 Thank you @jeffcp66 for fishing lessons.
#ShortStrangles – Rolling up the put side for some extra premium. Looks like she wants to break out to new highs…. Thanks @geewhiz112 for the reminder!
Rolled NVDA NOV 3 2017 165.0 Puts to NOV 3 2017 180.0 Puts @ 1.60 credit.
New position is NOV 3rd 180.0/215.0 Strangles @ 5.11 credit (this is still the week before earnings)
STO for next week of ladders
GILD 11/10 78 put at 1.04
EOG 11/10 92 put at 1.01
Rolled WDC 86 call tomorrow out 2 weeks for 2.23 credit. There was still .40 left in it but looking at mys schedule in the office not certain I would have time to trade at lunch. Better to do it early than not at all.
STO WDC 10/27 82 put at 1.18
From my WDC rolls now my cost basis is under 80 and finally showing big profits on the rolls. New trading range looks like 82-87 so as long as we stay there I will keep rolling the calls to take in more cash each week. Also pulled in the dividend of 0.50 last week. Virtual ATM last 12 weeks. The CC generates more cash than the puts but lower ROI.
Unless the market moves a lot tomorrow I am good until next week. Hope everyone has a good expiration week and trade smart!
Cheers, Chris
#longcalls
$VEEV BTO 11/17 55/65 BUCS @ 4.90 Risking 4.90 to make 5.10
AA #STO 10/20/17 50.0 CALLS @.60 Earning 10/18/17 AMC Per FinViz. @Jeff Will you be doing an earnings trade on this?
More like a #FallingAx
🙂 🙂
#LongPutDiagonals – Here’s the latest…adjusting the front month put sales that have (or will be) capping gains.
1. Closed one third of the position using the cash brought in from front month sales. This will open up that part of the 2019 position to continue lower towards zero.
Bought to Close VXX JAN 19 2018 38.0 Puts @ 6.68
2. Rolled the other two thirds of the put positions out and down to 2019.
Rolled VXX JAN 19 2018 38.0 Puts to VXX JAN 18 2019 28.0 Puts @ .31 credit
I made this adjustment after this conversation with TDA this morning:
——————————————————-
10:24 fuzzball: Quick question…any idea when the VXX 2020 LEAPS will be coming out?
10:30 SeanF_TOS: Hello, at the latest I would anticipate them to be issued once the Jan 2018 options expire
10:30 SeanF_TOS: usually they expire the 2018 ones then list the next set the following monday
10:31 fuzzball: Makes sense. I noticed the AAPL 2020’s were already trading. I’m sure it varies from ticker to ticker.
10:34 SeanF_TOS: Yeah they could potentially list them earlier based on trading demand. Exactly there isn’t an exact science to it, we’re usually good at keeping up and putting them on the platform the same day they get listed, but if you ever see them on cboe’s website as available to quote and we don’t have them let us know and we’ll get them listed by the next business day.
10:35 fuzzball: Thanks!
10:35 SeanF_TOS: You’re welcome! Have a great day!
——————————————————–
So…as soon as the 2020’s come out I’ll be rolling the puts again out and down and probably setting up another batch of synthetic short positions above them. Those (the 2020’s) will be capped to the downside again but the much larger 2019 position will be free to run all the way down.
Closed Early
$BABA BTC 10/20 185/175 BECS @ 2.70 STO @ 1.31
#shortputs
Rolled $NVDA 10/20 175 puts to 185 puts @ additional .95 credit Part of @ramie77 strangle
yesterday
of the 10.11.17 call 2560/2570 Had sold for .40
btc short side for .05 no fee at tos
2 day play
3.5% return on risk
#T
sto put 11/17/17 36.00 @.63-.67
to acquire for divi and cc if mr. market wants me to.
#classicvxxgame
$SVXY STO 1/19/2018 77.50 put @ 5.75 Balancing some of my short calls which are having a rough time.
#FallingKnife #IRA – Could be a long term hold. Dividend over 5 percent now with the selloff.
Sold T APR 20 2018 35.0 Puts @ 1.47
$DISH #ShortPuts #FallingKnife – Sold 1 DISH MAR 16 2018 42.5 Put @ 1.50 with the stock at 49.5.
Morning all $SPX #spxcampaign STO Oct 31st 2485/2460 BuPS for 1.05 when SPX was at 2552.88. 19 days to OpEx. Stop if Mark hits 2.00. Profit target 80% or mark at 0.20. Lets hope this doesn’t turn into a Halloween Horror. I have been trying 5 Delta short Puts per the class I took but just can’t get filled. I suspect there just are not many buyers/sellers at this level in the chain. So I elected to move the Delta up, -13 and was filled immediately which is in itself not so good either. Anyway I have a plan, my inner demons have been tamed a bit. And to quote the Late Great Paul Harvey ….. “That is the rest of the story.”
$AAPL 10/20 BTC 150/155 BUPS @.60 STO 8/29 @ 1.08 43% profit
$REGN 10/20 BTC 465 call @ 2.50 STO @ 10.02 as roll from 10/6 447.5 call Small loss
$FB 10/20 BTC 185/175 BECS @ 3.25 STO on 10/2 @ 2.66 Another small loss
STO November 10, 890/840 bull put spread for 2.53
#ShortStrangles – Rolling up the put side for additional credit. Original sale was just below the 200 ma. Rolling up to just below the 50 ma.
Rolled AVGO NOV 10 2017 225.0 Put to NOV 10 2017 240.0 Put @ 2.03 credit
New position is Nov 10 240.0/260.0 @ 6.48 credit
#SPXcampaign.
Closed on GTC order: $SPX Oct 16th 2515/2490 put spreads for .40. Sold last week for 3.70.
Sold Oct 13th 2560/2585 call spreads for 1.70 in last hour of day when SPX peaked. I entered that order in the morning and it filled while on the road.
In Dunsmuir, CA this morning… we’ll be home in Portland by tonight.
So on SPY the risk is fairly high to the reward. As @fuzzballl pointed out would take 33 winning trades or so to make up for 1 loss. However @jeffcp66 has figured out how to adjust credit spreads and losses could probably be contained to a reasonable level or a break even.
Regardless, I think the most efficient way to play this would be with /ES options (so excludes IRA accounts, need margin).
Full disclosure, I used to do this and was hugely successful, paid cash for 2 VWs in 6 months but then lost my shirt and a bunch more on 8/24/2015. My wife swore me to secrecy that I would never tell anyone exactly how much but will leave it as I gave back 6 months of profits in 1 day. Enough for another 2 fully decked out VWs.
So I figured out my issue since then and it had to do with leverage and a broker that did not understand futures options (optionsxpress). TOS and Tradestation allowed me to adjust my positions and broke even 2 weeks later. I have been doing this a little since and as long as you keep the leverage under control can manage the losers. I have not been posting because if you do not understand that part it is very risky. If you guys want me to post these trades I will. I tried it with oil but harder to do since no weekly options.
So here it is with a few tweaks. Combo of tastytrade and fishback techniques with my own addition.
Sell the closest to 45 DTE strangle on /ES. Currently would be the 37DTE 2405 put and 2620 call. These are both delta 9 options with prob. of 90% of being OTM at expiration. Current margin is $3895 per contract. They typically decay to delta 4 options in 3-4 weeks and can take 50-60% profits then as well. Then roll to next cycle closest to 45 DTE and start over, rinse and repeat.
Here is my tweak, I keep 6k on hand for each contract, that way I can cover with short or long /ES contract on a sustained move. If the delta gets to 30 will either roll, or if it appears will keep moving use the /ES contract. At that point you become directional but your risk is covered if you have 1 contract for every option and the only extra margin is to fulfill the futures contract. To the upside a covered call and downside a covered put. If you are exercised the contract fulfills the option, both positions close and you just made a tone of cash. That only happens a few times a year if lucky.
Advantages over SPY: trades almost 24/7. I tried to adjust at midnight on 8/24/17 and then went to sleep but the market moved another 300 points over night, only panic attack since getting caught in an avalanche skiing back country 20+ years ago.
Tax advantage 60/40 treatment like SPX
Much lower margin than on SPX. To do 1 contract on SPX is like 109k margin.
Liquidity although was not so good 8/24/17. The spreads went 25 points wide that day and getting anything filled was hard to impossible.
The put call/skew is still really good since 1987 so you could also do it one way directional on the puts and still have good return. Then would only have to adjust in 1 direction. The 2405 put is 4.85 as I type this and the 2620 call is only 1.85.
Disadvantages: a flash crash may move too quickly to cover, see above and you can lose a lot more than you get out or put in.
The double leverage of the options on the futures cuts both ways.
2 /ES = 1 SPX = 10 SPY so effectively 10-20:1 leverage compared to SPY options which are already 10:1. Like nitrous on a turbo car, fun until you melt the turbine wheel and the resulting shrapnel punctures the engine block! Been there done that and have the t-shirt and don’t want to do either again.
So that’s the best way I can come up to trade the SP500. Thoughts, comments, suggestions always appreciated and if you want me to post these trades I will. Just understand the leverage before doing it.
$VIAB #ShortPuts #FallingKnife – Sold 1 VIAB Mar 16 2018 22.5 Put @ 1.25
$TDG #ShortPuts – Bought to close TDG Nov 17 2017 98.0 Puts @ 0.05.
The stock & options were adjusted by a corporate event since they were sold.
On 03/22/2017 Sold TDG Nov 17 2017 120.0 Puts @ 3.00 and on 3/24/17 I added to the position @ 4.20.
It was a real #FallingKnife back then.
$GPC #ShortPuts – Bought to close GPC Nov 17 2017 75.0 Puts @ 0.05. They won’t trade any lower and still have over a month to run.
Originally sold as a #FallingKnife trade on 07/13/2017 @ 1.50
#LongCallDiagonals – Taking advantage of high IV in earnings week and rolling my front month as high as I can for even. Weekly squeeze and looking like it’s ready to run…
Rolled AMZN OCT 20 2017 975.0 Call to AMZN OCT 27 2017 1000.0 Call @ .13 credit
Almost right back where the whole thing started but…front month premium received of 44.50 during the dip.
$UVXY #ShortPuts – probably a stunningly stupid trade –
Sold UVXY Oct 27 2017 16.0 Puts @ 0.61 with UVXY at 17.62 and VIX at 9.75
Bought to close $UVXY Dec 15 91 call @ .54. Sold for 7.40 on 8/17. I was on vacation at the time and was lucky to get some #VXXGame trades on during the last relatively decent volatility spike. I’ll try to plan my vacation better next time 🙂
What’s left are Nov 60 and 70 calls, Dec 37 calls (pre-split so 148 equivalent), then starting in January nothing lower than 82 strike. Definitely need to get some volatility but I know I’m preaching to the converted.
$DUST #CoveredCalls #Rollout – Another roll as the stock drops back toward the low of the day.
Bought to close DUST Oct 13 2017 27.5 Calls/Sold DUST Oct 27 2017 27.5 Calls @ 0.25 Credit.
Bought to close $NUGT1 (pre-split strike) Dec 15 19.00 calls @ .04. Sold for .85 on 5/17.
#FallingKnife – I’d say SBH is there and ULTA may not be far behind. More AMZN victims?
#ShortStrangles – Got a little wiggle in TLT on the Fed minutes and my standing order filled. Increasing position size slightly on this #PerpetualRollingStrangles position.
Sold TLT DEC 15 2017 121.0/129.0 Strangles @ 1.55
High accuracy options update. Finally watched the DVD. Did not learn anything new but Fishback has found that a 1.21815 standard deviation tends to have the best risk/reward ratio. For those that do not want to do the math that works out to 90% probability of being OTM at expiration on TOS.
This is only for indexes, not individual names. But trading SPY the last 12 months using the 90% OTM short strike then going 3-5 points out on the long with iron condors they had a 300% return on investment and only 1 or 2 loosing trades. I don’t think they adjusted them looking at the spreadsheet, if they had probably would have been 100% winners.
Next week some WDC cc expire/assign in a small account. I will set up a new experiment. SPY 21-28 DTE 1.2 STD deviation iron condors. Add a new cycle each week and let the worthless ones expire. Anything goes ITM will adjust and see what happens. The account only has 6k in it so will see if I can get the same results in a rolling year.
SVXY synthetic rolled the 10/27 78 call out to 11/17 for 1.35 credit. Cost basis now 9.62 and 14.70 depending on lot against original basis of 16.06 and 21.14. It went up too fast to roll the short call weekly.
Lesson learned, next spike will set up additional synthetics with disaster put but will not sell short term calls against it. Not trying to be greedy but had I left it synthetic would be up almost 10k on 4 contracts. By selling calls I have limited it to 8k so still a great return no doubt.
I will keep the experiment going until Jan 2019 but I think we can all see it works and there is such a directional bias with UVXY, XIV, VXX, SVXY probably better to set them up on a vol. spike then leave them alone or sell really far OTM like 30 or lower delta.
#ShortPuts #RollOut Rolled out Oct 20 70 @ .30 puts to Nov 17 70 puts @ 1.48 for 1.18 credit. Shares at 100.12
#SyntheticStock #IRA -For lack of anything better to do I’m putting on a cheap long shot that a buddy of mine has been talking about for awhile. It caught a downgrade this morning so pulling back enough for an entry.
Going synthetic long stock with the 2019 LEAPS and buying protection slightly below that. With the skew the initial position was only a .06 debit. Selling front month calls also a couple weeks out.
Bought to Open HIMX JAN 18 2019 10.0 Calls @ 2.49
Sold to Open HIMX JAN 18 2019 10.0 Puts @ 2.99
Bought to Open HIMX JAN 18 2019 5.0 Puts @ .56
That’s .06 out of pocket but still a 5 dollar downside risk if this thing goes to zero….(you never know)
Then:
Sold to Open HIMX OCT 27 2017 10.0 Calls @ .25
Capping my upside slightly but even if HIMX goes nowhere and the front months average .10 it’s still a nice winner by the end of the run…
$DUST #CoveredCalls #Rollup – not much premium for next week so I went out 2 weeks.
Bought to close DUST Oct 13 2017 27.0 Calls/Sold DUST Oct 27 2017 27.5 Calls @ 0.30 Credit/
Gained 1/2 point on the strike price along with the extra cash.
SVXY breached 100 anybody long?
http://tinyurl.com/ydxzj93h
Sorry, didn’t get to post yesterday out celebrating 36th wedding anniversary…woo, hoo!
#coveredcalls MET
Rolled Oct. 50 call to November for .36, following TradeWise
Is anyone out there?
#spxcampaign
sto after close call oct 11/2017,//2560/2570 @ .40
#FallingKnife – Sold 1 DGX May 18 2018 80.0 Put @ 2.20
There were a few more but they were less than 5 bucks so not interested. DGX seemed to have the most potential here.
$DGX (looks interesting)
$TTS
$TV
$WBA
$SVXY #Shortputs Sold 1 to open Nov 10 75 Put @ 1.65 with $SVXY at 98.30 Trying to tease a pull back.
#ShortPuts #IRA – Using @Iceman ‘s idea on K but using GIS since I’m a Cheerios fan. 🙂 🙂 This would be a long term hold if I get the stock…
Sold 2 GIS Apr 20 2018 47.5 Puts @ 1.62
In my IRA, STO December 37.5 puts @ .70
Sold to open, May 2018 60 puts @1.25
Hat tip to Iceman for the idea.
$SLV #ShortPuts #IRA – Bought to close SLV Dec 29 2017 13.0 Puts @ 0.01. They won’t trade any lower and they don’t expire until year-end.
Sold on 05/08/2017 @ 0.24
$WBA #ShortPuts #FallingKnife – Sold 1 WBA Apr 20 2018 60.0 Put @ 1.47 with the stock at 70.36.
#SPXcampaign In pre-market, closed on GTC order: $SPX Oct 11th 2515/2490 put spreads for .20. Half of this filled yesterday, and the remainder filled this morning.
$WBA #ShortPuts #FallingKnife – Sold 1 WBA Jun 15 2018 60.0 Put @ 1.76
$K #ShortPuts #FallingKnife – Sold 1 K Mar 16 2018 57.5 Put @ 1.60
$COST #ShortPuts #FallingKnife – Sold 1 COST Jun 15 2018 118.0 Put @ 1.33
$XEC #ShortPuts – Bought to close XEC Dec 15 2017 75.0 Puts @ 0.05. They wont trade any lower and still have over 2 months until expiration.
Sold in June as a #FallingKnife trade at 1.30, 1.60 and 2.10 (the stock was obviously falling at the time)
$CVS #ShortPuts #FallingKnife – Sold 1 CVS Feb 16 2018 65.0 Put @ 1.40.
$GILD #Shortputs – Bought to close GILD Nov 17 2017 55.0 Puts @ 0.01. They won’t trade any lower.
Originally sold on 5/18/17 @ 1.34
$DUST #ShortCalls – Bought to close DUST Nov 17 2017 35.0 Calls @ 0.20 to release some margin.
Sold on 9/20 @ 0.60
#ShortPuts #IRA -Looks like she might be rolling over after a nice run. Held this all the way through the dip so finally booking it and freeing up a ton of margin…
Bought to Close AZO DEC 15 2017 500.0 Put @ 4.40 (sold for 10.00)
#ironcondor COST
From Tastytrade
Nov. 17 145/150/160/165 for 2.10 stock price at 154.60
#SPXcampaign. Sold to Open $SPX Oct 13th 2530/2505 put spreads for 2.35. Expires this Friday, or will be rolled if there’s no bounce from here. Are we finally getting some volatility?
#Earnings #LongStocks #CoveredCalls This one dropped big since its highs so I’m exiting since the position is nicely in profit but could lose it if the stock drops more. Originally sold 110 puts on Aug 11th for 2.00, then took assignment of the stock and sold covered calls. Final profit is about 2.27.
Sold PLCE stock for 110.05.
BTC Oct 20th 115 covered calls for .95. Sold for 1.73 (avg price).
#SPXcampaign. Here are my trades today:
Closed on GTC orders:
Oct 9th 2540/2515 put spread for .20. Sold for 3.70 on Thursday.
Oct 9th 2555/2580 call spreads for .20. Sold for 1.45 on Thursday.
Oct 19th 2420/2395 put spreads for .20. Sold for 1.45 on Sept 19th.
Oct 13th 2490/2465 put spreads for .25.
Oct 11th 2515/2490 put spreads for .20. Sold for 1.80 last Wednesday.
STOPPED: Nov 3rd 2585/2610 call spreads for 3.00. Sold for 1.90 on Thursday. Not sure why I had an order in for 3.00 on this one, but it was a mistake. Now a roll would be difficult since market dropped so much from this morning.
Closed Oct 16th 2475/2500 call spreads for 24.50. Sold for 22.50 last Monday.
#ITMroll. Sold Oct 23rd 2485/2510 call spreads for 23.05.
Sold Nov 10th 2600/2625 call spreads for 1.70
Sold Nov 10th 2460/2435 put spreads for 1.45
A total bonehead move. I was putting bids in to close a bunch of positions that were mostly profitable and I mistakenly closed this one that, had I waited 2 more weeks, would have become a long term capital gain. I was toying with the idea of leaving January positions on to defer taxes to 2018 but I changed my mind, and for some reason I wasn’t paying attention to this one. Of course none of my others got filled so I guess I deserved it 🙂
Bought to close $NUGT1 (pre 1:4 reverse split) Jan 19 2018 52 calls @ .04. Sold for 2.50 on 10/19/16.
I’ll still look to take positions off that are less than double the current price (i.e., with NUGT at 35, I will look to close Jan 58 calls, Jan 66 calls and Mar 60 calls). I’d like to clear those out to make room for potential sales if gold were to spike over the next couple of months. Quite a few potential stimuli out there for a gold rally.
Shotgun trades, new #optionladder
Setting up some new ladders in names with good premium. Some have earnings in a few weeks.
STO EOG 11/3 93 put at 1
GILD 11/3 79 put at 1.04
MU 11/3 39 put at 0.93
Will add new trades each week until 3-4 rolling weeks on the ladders.
BTC 11/3 XBI 79 put at 0.23. Sold 0.94. Premiums dried up on this since it went booster phase. Should improve with next big pull back. Only 1 week left on the ladder on this then will be out until the premiums improve again.
Putting on a position at the highest strike in Feb.
Sold $KOLD Feb 16 2018 55 call @ 2.40
$WBA #FallingKnife
Sold $WBA Apr 20 2018 60 puts @ 1.43 with the stock at 70.45
#T
sto put 11.10.17 37.5 @ .58
#TLT
sto TLT call 11.10.17 126 @ .67 and .68
cost basis and received this months dividend.
selling outside of next months divi on about the 6th of each month.
when called out will sell puts.
Borrowing an idea from TastyTrade
Sold $NVDA Oct 20 175/195 strangle @ 2.13 with the stock at 186.24
I hope for more volatility this week.
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