smasty 12:19 pm on Thursday, June 21, 2018
Tags: DoubleRatioUndie, Saf-T ( 12 ), UndieBear ( 4 )

Jun 21 Happy Summer!

1. SPX #UndieBear I just took $1290 profit in one day. This is a highly responsive trade to the combo of vol increase and price decrease. Market Profile is showing a developing 45 degree line for today, meaning folks are getting short in the hole. So decided to take profits. (Whoops scratch that on the 45 degree line, it looked like it was holding as support, but it broke)

2. Was at the hospital all day so took off the AMZN “vol fly” at the open so I wouldn’t have to manage it. Saw an $88 loss. I slipped in the close order before the drop in AMZN…it would have been fine in my fly range, but would have had some short term pain on it.

3. New AMZN trade: AMZN/XLY #DoubleRatioUndie AMZN is too expensive to double-undie, so I’m using XLY as a proxy for the put side. AMZN: Aug 1700c x2@106.15/Jun 29 1745c x-1 @19.30 XLY Aug 113 p x10 @2.93/June29 111p x -8@.63. The XLY side removes about 20% of the risk on the AMZN side.

4. TQQQ roll #Saf-T : Rolled Jun 22 to Jun 29, netted $4660 on the Jun 22’s. Rolled same qty but dropped to 62.5’s for 1.38.

5. Added an MU #DoubleRatioUndie at the open this morning: Sep 57.5c x10 @7.65/Jun 29 62c x -8 @1.39, Sep 62.5p x 2 @5.35/Jun 29 60 p x -1 @1.15. Max loss about $4800, gain at $62 next week is $1302. Premium sold for next week = 16% of risk.

Only two things left to manage tomorrow: CVX and IWM.

smasty 7:04 am on Thursday, June 14, 2018
Tags: CoveredBackRatio ( 11 ), DoubleRatioUndie, pietrade ( 143 ), Saf-T ( 12 ), Undie ( 7 )

Jun 14 SPY (con’t)

Yesterday I posted a plan for SPY with ex-div tomorrow. The plan involved the assignment of all my #Saf-T SPY shares, then replacing those with short puts for tomorrow expiration….which happen to have the div already priced in, along w/ a little premium.

As it turns out I had about 1000 shares called, but most of my short calls for last night’s expiration expired for full profit.

So I sold tomorrow’s 279 puts to replace the 1000 shares that were called yesterday, at $1.65.

Unless the market goes bonkers tomorrow, this is a guaranteed assignment due to the SPY price action on ex-div day (a $1.10 drop in price is guaranteed).

I have also done the required long put coverage for #Saf-T trades, buying Jul 27 276 puts.

So, for tomorrow: 1. I collect SPY dividend on 2000 shares, $2200 (pay date is actually next friday I think). 2. I collect the put premium on 10 puts $1650. 3. I take assignment of 1000 shares @ 277.35 (adjusted). 4. I can re-commence selling weekly premium on the shares.

#coveredbackratio, #doubleratioundie, #pietrade, #undie

smasty 5:24 am on Wednesday, June 13, 2018
Tags: CoveredBackRatio ( 11 ), DoubleRatioUndie, Saf-T ( 12 ), UnbalancedDiagonal ( 32 ), Undie ( 7 )

Jun 13 SPY Plan

Good Morning! Who agrees with me that the best commercial EVER was the Geico Wednesday (Hump Day!) camel?

So the #Saf-T trades are performing better than I expected, with very high degrees of protection. I have quite a lot of SPY that I had sold calls against for today, so the calls would be cleared by pre-ex-div tomorrow. They are in the money so I’m going to let the shares get called (if FOMC cooperates). Then I will clear and reset the 45-day 40-delta puts (protection is cheap again). I see that the Friday SPY puts have the dividend in them, so rather than hold shares for a div, I will sell a boatload of 1-strike ITM puts for Friday. Selling ITM puts is the same trade as a covered call, so this will be a way of getting the virtual dividend, coupled with extra premium that a call would bring in. Due to the upcoming drop in stock price on Friday for ex-div, I should get the assignment I want to re-populate the share position.

BTW, here is a pic of the price slices on my 3000 shares of SPY. Note the risk control in place on a 10% drop. A 10% market drop yields a 2% capped drop. This is great for higher yield cash storage…way higher than a CD/Money Market, but safe.

I’ll update here when my reset is complete, including the realized profit for the week on this trade.