AMZN stock price over the past 25 days is net down….allowing the short options to do what they are supposed to do in a covered call strategy. Three more months to get the stock gain to long term.
Positions and Friday trades at bottom of post.
Our Covered Call strategy on ABT was established with the purchase of 300 shares on May 26. Since that time we have added to the position with 300 shares on 6/25 and 400 on 8/21. Covered Call strategy on Abbott has performed well aided by an upward move in the stock. We have rolled the options 13 times and had two expirations. Abbott is attractive for CC Writing as it trades weekly options, potential for growth on the stock price and pays a dividend.
#coveredcallcampaign AA, AXL, X, LB, ARLO
Selling calls (AXL is a covered put), May 17, couple more to get filled.
Rolled April 18, 23 call to May for .72, Tradewise trade
Assigned on AMAT again, cost basis of 200 shares is 43.44. Sold 2, April 18, 41 calls for .96.
#coveredcallcampaign #fallingknife #longputs Trades from yesterday and today
WYNN yesterday rolled 140 call to April for 1.25, WYNN tanking today
CPRI yesterday rolled March 22 call to April 12 for .66
EWZ sold short 100 shares for 41.57
MS bought long April 18, 40/35 BeCS
PFE sold April 18, 44 call, was supposed to be a covered call in an IRA, ended up in wrong account, for .26
CVS today sold April 18, 50 put for .86, thanks @ramie77
MET rolled 42.50 call to April 18 for .57
DB bought April 18, 9 put for .62
Sold April 18, 39.56 call for .40
Rolled March 15 30 call to April 18, 30 call for .93 bringing cost basis down to 32.09, assigned at 38, stock currently at 30.
Rolled February 22, 175 call to March 1, 172.50 for 1.51, cost basis down to 170.76, going to get out of this OK.
Rolled Feb. 15 135 call to March 15, 140 call for .90, bringing cost b asis of assigned shares to 141.57, just prior to ex-div.
Sold Feb. 15, 175 call for .91, cost basis of assigned shares is 173.50
Rolled Jan. 25, 160 call to Feb. 1 for 2.82. My cost basis on these assigned shares is 156.99 and I don’t want them anymore so if AAPL blows through earnings next week I’ll be happy as I have another lot , uncovered at a little higher basis.
#coveredcallcampaign AMAT AXDX
AMAT sold Feb. 9, 36 call for .42
AXDX sold Feb. 15, 17.50 call for .82, added Feb. 12.50 put for .35
#coveredcallcampaign GIS SKX NKTR
GIS Sold Feb. 15, 42.50 call for .68, Tradewise recommendation
SKX rolled Jan. 18, 24 call to Feb. 8, 24 call for .85, earnings are Feb. 6
NKTR rolled Jan. 40 call to Feb. 15 for 1.60
July 3, Tradewise initiated a covered call in LUV. I closed it on my own today, making about $240 with premium and dividends. Their timing was right, but this could have been a really nice winner without the calls as it ran up 10 points or so last summer. I’m being cautious and getting some cash.
So obviously with the market rout all my #pietrades went ITM and to prevent a meltdown in margin I converted them all to #fuzzy. Which is great, has controlled the volatility and still have 111 weeks to manage them. But as @fuzzballl points out below, they are expensive. Cheaper than stock but my EXPE puts are now trading at 22.40 and 19.50. Not chump change.
The #pietrade idea is sound for income generation and even some capital gains long term as long as you sell the call ATM or OTM once assigned the stock. You also are typically only selling 1 side and as Karen the supertrader (now scam artist) figured out, selling the other side is what really improves long term returns and consistency. She may have been using some creative accounting but the idea is sound and has been proven by tasty trade.
So here is the tweak I have been playing with. When you set up the trade, start it as a #jadelizard but set it up ATM. For example with XBI currently at 78.02 I would sell the 10 DTE 78 puts naked (cash secure) and then sell the 78/79 call credit spread. Total credit 2.55. No upside risk, downside break even is 75.55 which is lower than where I probably would have just sold the put.
3 possible outcomes
a: below 78 assigned shares on the put at 78 but cost basis 75.55. Can sell a next week call or call credit spread if you think rebound, then uncapped upside
b: Between the strikes max profit and you may be assigned on the call but can exercise your long call if needed.
c: above 79 everything cancels out and you keep the credit minus $1.
Here’s a graph on a 10 lot.
I have been trading it on paper and it would have had better loss control on the #pietrades than straight put sales the last 2 months.
Thoughts, holes in the strategy, other ideas to tweak it or make it better? If you wanted to be more conservative could sell strangles OTM instead or straddles ATM on the short sides but then less credit. Since my premise is income, I am trying to bring in as much credit as possible on the front end.
Sold Dec. calls that are covered on some stocks today (I know it’s a down day);
FEYE, JCI, GPOR, WDC, DDD, T, SKX, OIH
BTC $FB Oct 12th 172.5 call for .14. Sold for 1.20 on 9/20
BTC $FB Oct 19th 172.5 call for .40. Sold for 2.00 on 9/26
Strikes breached so stopping out. I will wait to consider rolls tomorrow. The bottom could be in at any second here, but since it looks like we’re entering a Downside Warning, I have to be ready for more downside in the coming days.
BTC $SQ Oct 26th 94 puts for 4.65. Sold in 94/105 #StrangleRoll for 5.50 on Friday. Will leave the 105 calls in place.
BTC $FB Oct 19th 157.5 puts for 3.90. Sold for 2.30 on Tuesday.
Closed on GTC orders:
$SQ Oct 5th 82 puts for .10. Sold for 1.00 on Sept 14th
$MU Sep 28th 45 covered call for .08. Sold for .90 last Friday
STO $FB Oct 19th 172.5 calls for 2.00
BTC $OLED Sep 28th 124 call for .15. Sold for 1.65 on Friday
BTC $TSLA Sep 28th 275/322.5 strangle for 1.10. Sold for 8.20 on Sep 17th.
STO $TSLA Oct 5th 322.5 call for 5.60, adding to my position. Will sell another put on a down move.
Square up +11%
BTC $FB Oct 5th 175 calls for .15. Sold for 1.50 on Sept 11
BTC $AAPL Oct 5th 230 calls for .35. Sold for 3.60 on Sept 13th
STO $AAPL Oct 19th 227.5 call for 2.10
STO $AAPL Oct 12th 215 put for 2.05
BTC $SQ Sep 28th 80 put for .13. Sold for 1.30.
STO $SQ Oct 19th 97 calls for 1.60
Sold to close $BABA stock for 163.15. Raising some cash by selling half of my stock. This one can’t get off its ass. Was assigned via 200 puts on Feb 2nd. With covered call and put sales, cost basis 183.00. Holding the rest for an eventual return to 200.
BTC $BABA Oct 5th 175 call for .45. Sold for 1.60 on Friday.
#Rolling $BABA hit 170 in the pre-market; I closed one of two calls I had at the 170 strike. Kept the other.
BTC BABA Sep 28th 170 call for 1.95. Sold for 1.55 on Sept 12th
#Rolling Sold BABA Oct 5th 175 call for 1.60
BTC $SQ Oct 5th 97 covered calls for .25. Sold for 2.45 on Sept 13th
Sold $MU Sept 28th 45 covered call for .90. I also am still long Oct 5th 45 calls.
BTC $OLED Sept 21st 122 covered call for .40. Sold for 1.50 last Friday.
Sold Sept 28th 124 call for 1.65.
Sold $AAPL Oct 12th 227.5 covered call for 2.13
Sold $FB Oct 12th 172.5 covered call for 1.20
BTC $OLED Sep 21st 114 put for .15. Sold for 1.50 last Friday
#CoveredCallCampaign Nice to see some strength in this one, but worried it’s a dead cat.
Sold $BABA Oct 5th 170 covered call for 1.55.
Sold $AAPL Oct 5th 215 puts for 1.78. Offsetting 230 covered calls.
Sold $SQ Oct 5th 82 puts for 1.00.
BTC $TSLA Sep 21st 260 put for 1.40. Sold last week for 11.95. Still holding another, against 300 calls.
$RH Stopped out on Sep 28th 135 calls, for 5.55 and 8.00. Sold for 2.80.
Looks bullish now so sold Oct 5th 130 puts for 2.80.
#CoveredCallCampaign This one has been a monster, and call premium is big. Got some of my calls run over so building my way back. I am long stock and also long Jan 2019 60 calls.
Sold $SQ Oct 5th 97 calls for 2.45.
Anyone have advice on rolling my Jan 60 calls? I can go to March or Jan 2020. Currently trading at 32.83. Can roll up to Jan 2020 80 call for 26.20, or Jan 2020 100 call for 17.40.
Sold $BABA Sep 28th 170 call for 1.55
Sold $AAPL Sep 28th 227.5 calls for 3.60
Closed $MU Sep 14th 47.5 covered call for .08. Sold last week for .75. Leaving the deck clear for earnings next week.
BTC $AMAT Sep 14th 125 covered call for 2.50. Sold last week for 2.00. Ex-div tomorrow, so I’ll wait until after to sell new calls. #PieTrades
Sold $TSLA Sep 21st 300 call for 4.25
Sold $RH Sep 28th 135 call for 2.30
#CoveredCallCampaign Have we found its bottom?
Sold $FB Oct 5th 175 covered calls for 1.50.
BTC $FB Oct 5th 165 puts for 6.17.
BTC $RH Sep 28th 129 puts for 7.25.
My IB software has been funky on trade history so I don’t have sale prices handy.
Had to make a few rolls today:
Rolled $FB Sep 14th 170 puts to Oct 5th 165 puts, .10 credit.
Closed $FB Sep 14th 182.5 calls for .20
#CoveredCallCampaign Sold $BABA Sep 21st 177.5 covered call for 1.54 (what’s happening to BABA?)
#PieTrades Sold $AMAT Sep 14th 42.5 covered call for .72
#ContangoETFs Sold $DUST Nov 60 call for 1.95
Back home at last… slept well so keeping jet lag at bay!
#CoveredCallCampaign #SyntheticCoveredCalls Since I’ve been trading lighter I mostly only have long stock and long #LEAPs positions. Looking for new entries… who’s got something?
Wednesday I was over the Pacific without enough WiFi megabytes to trade, so fortunately the market didn’t do much.
Tuesday: BTC $SQ 75 calls for 1.55. Small loss. #StrangleRoll: Sold Aug 31st 73.5/78.5 strangles for 1.95.
Tuesday: BTC SQ Aug 24th 76 call for 1.16 & Aug 31st 76 call for 1.96. Breakeven combining the two.
Today: #Rolling Sold SQ Sep 7th 79 call for 1.55; sold Sept 7th 80 call for 1.50
Today: Sold $BABA Sep 14th 195 Covered Call for 1.50
Tuesday: Rolled $AAPL Aug 24th 202.5 #CoveredCalls to Aug 31st 205 covered calls, breakeven. Still underwater on this one but managing to creep my strike up.
Today: Sold $FB Sep 14th 182.5 covered call for 1.45.
Today: Sold $AMAT Aug 31st 43 covered call for .80. This #PieTrade is a stinker… not much premium to work with.
#ContangoETFs Stopped $GUSH Dec 32 put for 6.20. Sold for 5.05 in a strangle-roll months ago.
#StrangleRoll: Sold GUSH Dec 21/45 strangles x2 for 3.87.
Also, closed GUSH Sep 62 call for .10. Sold for 1.60.
#PieTrades BTC $OLED Aug 17th 120 call for .20. Sold for 2.00 on Friday.
BTC $MU Aug 24th 53 call for .10. Sold for .85 on Monday.
Catching up on posting from the last 7 days…
Sold $AAPL Aug 24th 202.5 #CoveredCalls for 7.00. This replaces the Aug 17th 202.5 calls I closed last week for 7.40, to avoid being called away on the ex-div date. I’m rolling ITM calls after earnings trade got breached.
Sold $SQ Aug 24th 76 call for 1.25, and Aug 31st 76 calls for 1.23
Sold $PYPL Aug 31st 90 calls for 1.10. A roll-up from Aug 24th 87.5 calls stopped last week.
Stopped $FB Aug 24th 187.5 covered calls for 3.85. Rolled to Aug 31st 180/195 strangles for 3.83. Looks like I got stopped at the top. #CoveredCallCampaign.
#PieTrades Rolled $AMAT Aug 10th 46.5 covered call to Aug 17th 46.5 for .30 credit.
#VXXGame Closed $VXX Sep 21st 50 call for .46. Sold for 5.65 on April 17th.
sold Sept. 47.50 call at .84
Closed $SHOP Aug 3rd 140 calls for .15. Sold for 1.40 on Monday.
Rolled $TSLA Aug 3rd 330 calls to Aug 10th 332.5 calls for .40 credit.
Closed $SQ Aug 3rd 71 calls for 1.50… sold for .78.
Rolled $AAPL Aug 3rd 200 #CoveredCalls to Aug 10th 202.5 calls for 1.85 debit.
Rolled $AMAT Aug 3rd 46.5 covered call to Aug 10th 46.5 call for .12 credit.
Sold $MU Aug 10th 53 covered call for .84
Closed $OLED Aug 3rd 100 covered call for 1.50. Sold for 2.15. Earnings next week.
Sold $FB Aug 24th 187.5 covered calls for 1.35
$AAPL 177.5 puts. Sold for .75
#CoveredCallCampaign Had a couple calls breached so I exited on the intraday pullbacks. Will look to re-enter OLED but probably leave the other two until earnings.
BTC $AAPL July 27th 192.5 call for 1.95. Sold for 1.55 on July 2.
BTC $SQ July 27th 68 call for 1.70. Sold for 1.53 on July 6.
BTC $OLED July 27th 97 call for 2.15. Sold last Thursday for 1.50.
Closed on GTC order: $BABA July 27th 205 call for .16. Sold for 1.57 on June 28th.
BTC $AAPL July 20th 180 put for .15. Sold for 1.44 on June 20th.
BTC $FB July 20th 190 put for .16. Sold for 1.60 on June 20th.
#coveredcallcampaign JCI EWZ
Tradewise cc, sold August 17, 37 call for .43
EWZ sold July 20, 34 call for .39
#CoveredCallCampaign Sold $BABA July 27th 205 covered call for 1.57.
#CoveredCallCampaign. Sold $AAPL July 20th 195 calls for 1.37, rolling from yesterday’s stopped put.
Stopped $TQQQ July 6th 64 calls for 1.80. Sold for 1.35 on June 13th.
Sold TQQQ July 13th 60 puts for 1.45
Sold $SQ July 6th 66.5 put for 1.43
Stopped $PYPL July 6th 87 call for 1.56. Sold for 1.15 on June 5th.
Sold PYPL July 20th 83 put for 1.18
Selling calls in TQQQ, SQ, and PYPL the they get a little higher.
Stopped $FB June 29th 200 call for 3.45, Sold for 1.90 on June 1st.
Closed $FB June 29th 185 put for .23. Sold for 2.00 on May 31st
Sold FB July 20th 190 put for 1.60
Sold FB July 20th 210 call for 2.00.
Yesterday, stopped $AAPL July 6th 185 put for 2.85. Sold for 1.70 on June 8th.
Today, closed AAPL July 6th 197.5 call for .18. Sold for 1.90 on June 4th.
sold AAPL July 20th 180 put for 1.44.
Will sell new #CoveredCalls at highs.
Closed $TQQQ June 29th 62.5 calls for 2.15. Sold for 1.20 last Wednesday.
Sold TQQQ July 6th 59 puts for 1.25 as a partial #StrangleRoll. I will sell call side at new highs.
Stopped $SQ June 29th 63.5 call for 2.23. Sold for 1.60 last Wednesday.
Stopped $SQ July 6th 63.5 call for 2.39. Sold for 1.77 on June 5th.
Stopped $SQ July 6th 63 call for 2.49. Sold for 1.40 last month.
Sold SQ July 13th 60 puts for 1.34 and 1.40, part of a #StrangleRoll. Will sell calls at new highs.