Sold June 19, 115/125/125/130 put butterfly for 1.30 credit
Bought Feb. 15, 41/42/42/44 for .35
TastyTrade idea, adjusted the strikes to a Dec. 21, 250/260/260/265 put butterfly for .50, profitable above 255, stock at 308.
Followed the young Bat July 20, 240/250/250/255 for .42 (bought 240 put, sold (2) 250 puts, bought 255 put), profitable above 244, currently at 262.
Looks like it was a quiet day for a lot of people here.
1. May I please call these “Fuzzy” trades? I love them and I’m doing a lot of them (#SyntheticStock Diagonals w/ protection and hedge income—From now on known as #Fuzzies. To me, the Fuzzies have two stages, stage one is recovering the net debit of the trade; Stage 2 is recovery of the spread risk. I spent time this weekend looking at and scoring candidates. The “score” is basically the number of weeks of hedge income that it takes to accomplish Stage 1. The fewer the number of weeks, the lower the score. I’m looking for Fuzzies with a score of less than 5, less than 4 even better. I have a picture in my head of having a portfolio of 10 Fuzzies, each with $10 spread risk, bringing in 10-15K a week in income. So I’m testing these aggressively.
I have a TOS scan for finding high-return covered calls and puts, and it turns out it’s a good scan for finding Fuzzy candidates with low scores. Here’s the scan http://tos.mx/vKzR27
So back to Trade #1: CELG. I happened to catch a big bullish fund order for a Jan risk reversal, so a CELG #Fuzzy was my first trade of the day: Mar 110c/-110p/+100p, Dec 15 110 c. Net debit: 1.38 with a “Score” of approx 2.38 (2.38 weeks to cover the core debit)
2. Oh…here’s a nod to @hcgdavis for the Alpha Shark indicator. Got it. Love it. So scalped a bunch of /NQ today while taking it for a test run. Ended up +$305 on small-lot scalps. Enough to pay for the indicator 🙂
3. NTES. Now this was a franken-trade. It started as one 10-lot #butterfly. As it dropped added another 10-lot butterfly. Last week added a 3rd 10-lot butterfly. Was finally able to close it all out today for a $157 loss. Believe me, I’m happy with that!
4. #Bitties Closed! SPX x 20 lot, NDX x 10 lot. Got 50% target on all of them. The SPX bitties were 7DTE, so was happy to close them asap given the gamma risk. Net profit $1150.
5. Reset 17DTE SPX #Bitties. The Dec 27 2630/2625 for .85 cr x 20
6. NTNX I’ve been holding 703 shares, took 603 off for about $950 profit. Some day they’ll be acquired so I’ll always keep a hundred on. Great stock for swing trading, so will load back up on any dip. My max size position is 3000 shares, but I never seem to get the opp to add that many on.
7. QQQ #JadeLizard closed for 50% profit, this week’s expiration
8. SPY 266/267 #BuCS closed for 90% profit. This was bought based on #UOA (unusual option activity). SPY trades massive volume in fund flow, obviously—but it’s almost all put hedges. Every once in awhile a big bullish trade hits the tape, and those are ones for my attention.
9. NUE Closed a BuCS for 50% profit, this is another one that was bought on #UOA
10. NUE Opened a #Fuzzy Apr 60/60/50 for 1.87 core debit, Dec 15 62 call short for .56, Score is 3.3. There was a lot of bullish option flow on this today….all the way up to the 70 call line.
11 NUE spec trade based on #UOA bought 100 Jan 70 calls for .16, just looking for .21 as my target
12 MU #EarningsRunUp added two more calls to the trade from last week. Looking for 30% profit on these and must close before earnings announcement.
13 AMC #UOA There was unusual activity on AMC right before the other cinema merger happened last week. Turns out AMC confirms they’ve been approached too, regarding investment options. I’m glad I sold a few puts when I saw the fund flow. Netted 50%, $370.00 on a 10-lot
14. MSFT I like to layer on a lot of different MSFT trades. I love what they’re doing with Azure. However I saw a lot of January put buying today on MSFT, so I cut a trade short (#BuCS) for 28% profit vs. the 50% I was looking for. I still have on a MSFT #Butterfly that I’m watching closely. 80/85/90 for Feb.
15. ALGN This is the last of my trades from the tech crash. I defended it resulting in half what the max loss would have been. All closed now for $1150 loss. Classic case of thinking it would come back. Could have been handled better, but could have been handled much worse. I wouldn’t mind resetting with a #bitty or #PutRatioSpread the problem is that it’s just really thin. The Market Makers are not the worst I’ve dealt with (ISRG, KORS, ULTA are worse) but it’s still a struggle.
16. TWTR Opened a #Fuzzy in a 401K. I again saw some large bullish fund flow on TWTR and it had a good score. Mar 22/22/18 core for .78, sold Dec 22.5 call for .46, score is roughly 2. Not sure how this one will work out, but I’m still developing the perfect candidate profile for the Fuzzies.
@fuzzballl I hope you are ok being the namesake on these trades. It’s cute!
NDX: Rolled BeCS from 6460/70 to 6360/70, took profit, reset for delta control against BuPS
PYPL: Covered short calls (Covered Call) and reset on upswing
MOMO: Closed defended earnings trade for net $97.00 profit, used #Inversion defense
ALGN: Added a BeCS to my BuPS for delta management
BA: Bruce Marshall did a class last night at ST, I bought the #Butterfly setup from the class, it’s a directional Butterfly: Jan 18 265/275/285 10×20 for 2.55 debit, target 3.06
NVDA: Fuzzball reminded me to get an NVDA position open, put on a #JadeLizard Dec 15 short 185 put, short 205 call, long 207.5 call for net credit of 3.23, up nicely now, target cover 1.62.
KORS: This started as a post-earnings Iron Condor with good backtest history, but it has gone through SO much defense. Very happy to take it off today. I show a profit after many adjustments, but I don’t quite trust that I have the right baseline number.
SPX: I closed 3 of 4 #Bitty for a +$50 scratch. I added a BeCS to the 4th 2650/2655 for 1.45 cr for delta management.
I know these posts are lacking proper detail, but it’s been a very challenging day for me, trying to get the cows back into the corral!
This is a whackadoodle day for me, lots of trades, not much time for detailed math:
ADSK Defense Trades:
1. Sold to open Dec 1 110 calls at the open for $3.90
2. Rolled 1/2 of my Dec 1 120 short puts to Dec 15 for .45 credit
3. Closed the other 1/2 of my Dec 1 120 short puts for big loss
4. Waited for further drop and closed my Dec 1 121 long puts for big gain
5. Sold 5 Dec 15 113 calls
6. Waited for turn signal and covered the 110 calls (from above) for 1.41
7. At a spot now w/ ADSK where I can let the dust settle. Net loss right now is about $2800.00
1. Sold an additional 5 Dec 35 puts for earnings (portfolio-build strategy)
I had a modified #JadeLizard from 2 days ago, the put side of that trade is the 190/180 spread. I #Butterfly (butterflied) that put spread for defense.
STO 4 Dec 15 190 put
BTO 4 Dec 15 200 put net debit 6.29
I love butterflying spreads for defense, it accomplishes 4 things: 1. Flatten deltas 2. Raise max loss 3. Widen profit range 4. Raise max profit
bought a 3/8/8/13 put butterfly for .40 (TT trade) profitable between 3.37 and 12.63, risk 40 to make 463
Followed from TT sold July 21 call butterfly 150/155/155/165 for 1.85, profitable below 162, risk 332 to make 693
$AAPL #butterfly followed Tony at Tasty on a March 18 call butterfly sold 2, 100 calls, bought a 98 and a 102 for a cost of 36. According to him, this is a winner if the price is between 98.36 and 101.64
$SPY #butterfly followed Mike at tasty trade if you’re interested in the explanation, sold 2 March 18 182 puts, bought a 170 and 197 for a credit of .51.