OLED TQQQ LABU-LABD

#LongCalls #LongPuts #LEAPS #CoveredCalls – Was out nearly all day but had a couple fills from standing orders and the beginning of another experiment 🙂

OLED:
Bought to Close OLED NOV 23 2018 98.0 Calls @ .05 (sold for .65)

TQQQ:
Bought to Close TQQQ NOV 30 2018 55.0 Calls @ .05 (sold for 1.19) re-load tomorrow hopefully…

Risk reduction on one contract taking the small loss…

Bought to Close TQQQ JAN 18 2019 40.0 Put @ 3.50 (sold for 2.50)

LABU/LABD

One of my most frustrating positions so going to try something. Converting the LABU long LEAP calls to long LEAP puts on LABD. The built in drag should help this and the call side was approaching massive whipsaw risk with sales so far below the LEAPS. New position is out to 2020 instead of 2021. Collect as much premium as I can between now and then and then see where it stands.

To establish the new position, I sold the calls and bought whatever puts were the same price and just rolled the basis to the new position. Long 25 strike puts now so will be selling above those but not nearly the whipsaw risk that the call side had.

Long story short…about 30 cents a week on a 5 lot is the goal. Hopefully can get most of that.

#fuzzies, #pietrades

And the winner is:

#fuzzies during the market volatility. Makes sense, the spread offsets both sides and the income from selling options helps cushion the drop.

Trying to get back into #pietrades but market not really cooperating at the moment.

Some short covering created a few more trades.

#fuzzies

MU rolled the 40/40 22 DTE out to 43 DTE for 0.66 credit. cb now 14.69
WDC 40/46.5 8 DTE out to 22 DTE and up to 47 for 0.38 credit. cb now 22.14

Will try to roll these back up and stay ahead of them going deep ITM. If I can’t will ratio.

Now going for bike, hopefully another 1k of decay will happen in EXPE and can roll them when I get back.

No predictions here but I…

No predictions here but I don’t think we bounce until the VIX is in the 20s.

Only trade that is working for me at the moment is /CL. MU, WDC, EXPE, and most of the chips all suck. Good thing they are #fuzzies and still have 1-2 years to break even.

I am now flat on profits for the year in my core account but still have 12k + of decay over the next 35 days. Unfortunately they theta decay is not keeping pace with the dropping market.

TQQQ pietrade

Dipping my fingers in the pie. Thanks @hcgdavis for your help. I welcome constructive criticism on my choice of ticker or strikes.:-)
STO TQQQ Oct12 66.5p @ 1.80

#pietrade

#fuzzies

Weekly vs monthly options or…

Weekly vs monthly options or #pietrades vs #optionladder

Not trying to sound greedy but after I converted a lot of #pietrades to #fuzzies and #optionladder, the decay is A LOT slower. Like watching paint dry but there are some advantages and disadvantages. Had a lot of time to think about trading this weekend with tropical storm and hurricane on the way.

Advantages:
higher premiums up front
less frequent adjusting
lower gamma risk, it can move around more before it hurts the overall position.
less trading=less commissions and fewer trades to monitor
easier to adjust
less intensive trading

Disadvatages:
slower premium decay, much slower my theta is half of what it usually is
less overall premium, you get more up front but 4 weeks of ATM options is a lot more premium than 1 option sale
fewer positions
in the case of diagonals or multi strike calendars, harder to adjust with monthlies. Weeklies let you simply roll up/down/out
less compounding effect, my back of the note pad answer is about 15-20% less annualized returns compared to weeklies

So which one wins? Depends on your goals. Personally I am trying to grow accounts so I will be sticking with mostly weekly and #pietrades. The compounding effects more than offset the additional work.

If you already have everything you need, then #optionladder would probably make more sense.

Some days/months trading is easy, other not so much. These last 6 weeks have been hard for me after earnings went bad and not a lot of time to trade. If it was easy everyone would do it and be good at it.

Thanks again for the ideas. I finally close a lot of these trades in 11 days and can re-deploy capital.

#cat4, #optionladders

#pietrades and making adjustments. I…

#pietrades and making adjustments.

I have some garbage in my accounts right now and just as I start to break even, it moves again. MU, WDC started as #pietrades, converted to #fuzzies. MU was showing a profit yesterday but 5 points down today on MU and 2 on WDC now have created more work. So anyway, here is what I have and will gradually be moving to ETFs. Only problem is some of my accounts are not big enough to handle the good ETFs unless I #fuzzy them which is probably what I should be doing anyway. On a positive note I have made back 25-30% of the SVXY losses in 6 months. Probably another year to make it all back. That was a harder lesson than the /ES in Aug. of 2015 but at least I had a bigger capital base so did not totally destroy the accounts. Will be interesting to see what happens with the premiums when SVXY reverse splits. I will not trade it unhedged!!

Adjustments
MU 55/50 LEAP call rolled out to 8 DTE for 0.42 credit. CB now 10.52
WDC rolled the 15 DTE 60/65 LEAP down to same date but 60 short call for 1.01 credit. Cb now 16.77
EOG 115 LEAP call 15 DTE, no adjustment. Cb 11.20

New trades
LABU STO the 15 DTE 90 put for 1.2. You could do better now.
TQQQ batch 1 cc 65 at 8 DTE for 64.00
TQQQ batch 2 65.5 cc 8 DTE at 64.45
LNG batch 1 66.5 cc 8 DTE at 65.40
LNG batch 2 66.5 cc 8 DTE at 65.65

Added to XBI #fuzzy and now have all Jan 2019 LEAPS and 22 DTE short calls
95/98 leaps at 5.49 this is the new one
87/95 leaps at 6.43
95/95 leaps at 2.95

At least my theta decay is huge.

Need to be better about direction and timing, wil be using my tools more now instead of just placing weekly #pietrades no matter the ticker is doing.

Even with the garbage still made $582 last week but generally stagnant after the last earnings round.

It seems that a lot of my #pietrades have been converted to #fuzzy lately. Maybe I can get to 10 names, 10 contracts each making $1 or more a week, that would be a lot of cash coming in which would offset some of these dogs 🙂

#pietrades, #rolling, #hedge On vacation…

#pietrades, #rolling, #hedge

On vacation this week but home so still doing some trading.

Let’s get the crap out of the way first. Sorry to anyone who followed AMAT. Loss on the last earnings 12 weeks ago. Almost worked it back to even but they beat last week but still punished so break even or near break even is now a loss again. I mostly had these in small accounts so am closing so I can use the money on something more effective. BTC all the 47 call options for pennies, 0.03. Sold the stock at 43.06 and 43.09. Total losses (not per contract) of $588 on lot 1 and $558 on lot 2. Not bad considering it was down over $2000 initially. Rolling helps but the reason I am closing it is this: as it dropped below $50 the premiums dried up. ATM 1 week out is only 0.4-0.5. Not enough for #pietrades. Second reason is after 14 weeks of not being able to break even, time to move on. Like GM this is off the #pietrade list for a while. If you can’t bring in more than 0.5-1% per week, not worth #pietrade.

STC the SPX 2550 calendar hedge for 0.55. So a 1 month hedge only cost 0.65. I will continue playing with these but doubt I will always have a hedge. Maybe easier to just short some /ES futures when needed.

Rest are updates, rolls, new trades.
#fuzzies
MU LEAP 55/50 8 DTE cb at 11.26. At least MU found a base.
WDC LEAP 60/ 65 29 DTE cb at 17.78. Looks like finding new range in the 60-70 area.
EOG LEAP 115/115 29 DTE cb at 11.2.
XBI LEAP 87/95 and 95/95 rolled out to 22 DTE for 0.72 credit. cb now 6.8 and 3.32. Should be free trades soon.

#pietrades
LABU 8 DTE 85 put for 1.9, cb 83.10 if assigned. Good support at 85.
TQQQ lot 1 65 cc rolled to next week 65.5 cc for 0.20 credit. Cb 62.78
TQQQ lot 2 65 CC cb 63.23, new trade, small account only 1-2 contracts
TQQQ lot 3 65 cc rolled to next week 65.5 for 0.25 credit. Cb now 62.98
TQQQ lot 4 66 CC cb 65.02 new trade.
TQQQ lot 5 65 cc cb 63.90

Looks like a lot of TQQQ but each account only 1-2 contracts, I am diversified elsewhere. However I have noticed that my more concentrated accounts are doing much better. Better to be a specialist than a general practitioner like me, at least for trading. Also have noticed the more you get direction right, the better the non directional trades do better. Will keep working on being better at directional bias.

A few other changes. No more #pietrades on earnings. Last 5 out of 8 went bad and basically flattened my equity curve for the last 4 months. Would have done much better without those. If I do them will use spreads in advance. Without those 5 losing earnings trades I could have paid off my wife’s car.

Converting deep ITM #pietrades into #fuzzy is a very effective risk reduction tool. Allows you to limit margin but also keep selling premium weekly and looking at 100% returns over 6 months if I keep them going. Probably best tactic for small accounts.

I will be moving most of the #pietrades over to ETFs and leveraged products to avoid the single ticker risk. The ladder idea works well for this 45 DTE and closing/rolling after 3 weeks.

#rolling With the drop yesterday…

#rolling

With the drop yesterday can pretty much roll everything instead of letting call out or assign. Bad few weeks for MU and WDC down 11 and 14% respectively. They were converted to #fuzzies so a little easier to manage now but this is the only account showing a drop.

New trade STO SQ next week 70 put for 0.95.

MU 55 leap 50 call rolled a yesterday dropping cost basis to 11.26

WDC 60 leap 65 call rolled yesterday dropping cb to 18.01

EOG 115 put 36 DTE was challenged yesterday. Cost basis 113.2 if assigned.

This made me realize an easier way to manage deep ITM #pietrades is to convert it to a put leap #fuzzy. Takes out the margin requirement. If keeps dropping can manage it to a put diagonal. If reverses can either add a call side or keep rolling the put up. As you do that the margin requirement will increase but still much less than naked puts. If I had done this with MU and WDC instead of converting to the call side I would be making $ now. With any leap strategy, the short option strike is what determines the profit loss at the expiration of the short option. Going forward I think this will be my preferred strategy but only for deep ITM puts (5 points or more). Otherwise will manage as a regular weekly #pietrade.

SPX hedge rolled next week 2550 short put out to 15 DTE for 0.6 credit. Hedge only costs 1.2 now and if we head to 2550 will still make 12k. Hope I don’t need it. Next month will use back ratio or risk twist.

TQQQ batch 1 65 cc expires tomorrow rolled to next week for 0.9 credit. cb now 62.98.
TQQQ batch 2 65 cc expires tomorrow rolled to next week for 0.9 credit. Cb now 63.23

AMAT batch 1 47 cc rolled out 2 weeks for 0.33. Cb 48.91. Few more weeks to cover it.
AMAT batch 2 47 cc rolled out 2 weeks for 0.31 credit. Cb now 45.88 and if I can’t get more than 0.5 on next roll will let it assign and move to another #pietrade

#fuzzy XBI 87 and 95 leaps with rolled the 96 and 96.5 short calls down to 95 for 15 DTE for 1.1 and 10.6 credits. Cb now 7.52 and 4.04 as they were separate batches.

TOS calculates diagonals weird. They are all showing a loss on the graph but nearly 20% reduction in cost in 1 month so make sure you keep track of your cost basis. In the end that is all that really matters with any trade.

Hope everyone is having a good week. Not much to do until next week now. At least I tripled my theta decay with all the rolls.

#pietrade conversion to #fuzzy Sold…

#pietrade conversion to #fuzzy

Sold WDC for 67.16 against cost basis of 72.34. BTO 60 leap in 2020 for 14.15 bringing new cost basis to 19.33. With 73 weeks left only need to collect 0.27 per week to cover. Already short the 70s 16 DTE.

Freed up 60k in margin for other uses.

I will be doing this a lot more with #pietrades that go way ITM. Much cheaper way to stay in the trade, less to lose, less to make up and plenty of time to do it.

Question for @fuzzballl since you do the most of these. On an annualized basis what are realistic returns for these? I personally come close to 100% but may not be managing them the best.

#fuzzies

#pietrades and #fuzzies MU 2020…

#pietrades and #fuzzies

MU 2020 55/55 calendar rolled out to 15 DTE and down to 53.5 for 0.71 credit. Cost basis now 12.62

WDC assigned on 7 contracts 75 puts at 73.71 cost basis. I am sure the other 3 will assign so sold 10, 8 DTE 69.5 cc at 0.93 dropping cost basis to 72.78.

I can see both of these are reversing already so will end up adjusting.

TQQQ 60 cc rolled out to next week for 0.9 credit. Cost basis now 57.79 batch 1

TQQQ 59 CC rolled to next week for 0.7 credit. Cb now 57.25 batch 2

AMAT 47 cc rolled out next week for 0.41 credit. cb now 49.76 on batch 1

AMAT 47 cc rolled out next week for 0.35 credit. Cb now 46.64 on batch 2. Will let this one call out if ITM next week and this batch repaired from earnings after 5 weeks. However, this is a small account and I think I can do better with a #fuzzy.

Seems like 5 out of my last 8 earnings trades all went bad. Maybe time to reconsider earnings trades, at least as a #pietrade. Probably better to skip that week then re-establish the week after.

Also the triple ETFs have been easier to manage. Not saying lower risk, but easier to manage. The extra premiums allow you to roll easier, move strikes ITM, OTM, or ATM and still take in good credits. The higher premiums create more opportunities.

From an income standpoint #pietrades make the most income but on a percentage basis the #fuzzies are doing better. Also better for smaller accounts.

So what does this mean, see below for the 45-22 DTE ladders for #pietrades. Small accounts will use spreads and #fuzzy, and #supercharger.

Have officially made back 33% of the SVXY losses. 3 accounts have fully recovered but 2 accounts have a long way to go. Having to be more conservative with those accounts as well because they are small/tiny now and another loss would wipe them out so the other reason I am looking at longer duration trades.

#pietrade Late post, too busy…

#pietrade

Late post, too busy yesterday and nearly everyday. Work is decreasing my trading profits. s

MU rolled the 55 cc that expires Friday out a week for 0.44 credit. Cost basis now 55.79. 2 more weeks should break even then can decide whether to keep rolling for profits or reset.

I may convert this and WDC when assigned to #fuzzies to free up margin for other #pietrades

Efficiency of capital round 3…

Efficiency of capital round 3 or 6, lost count.

While sitting in airports and riding in the plane was thinking about how to improve #pietrades and any trade you were assigned. Here is what might work, may convert MU tomorrow to see how it works.

1. set up weekly ladders, 21 DTE seems to be ideal except going into earnings. EXPE and WDC are holding most of its time value right up until tomorrow. Less chance of getting assigned, easier to adjust farther out, more premium for strikes OTM. Also they decay quickly enough you can usually roll in 1-2 weeks if they stay OTM.

2. If put deep ITM better to take assignment and convert to covered calls.

3. However, instead of taking the stock long term like I did with GM (22 weeks), may be better to sell the stock at a loss and reset to a #fuzzy using a calendar or lower strike call. Then you are in the trade longer term, cost basis goes up, but the big advantage is you free up a ton of margin to use on more profitable trades. Then just a matter of recovering the initial loss and working the LEAPs down to cost basis of zero.

I may try this as a long term experiment with MU tomorrow, close to break even on cost basis but want to keep collecting MU premiums but would rather not hold the stock for 24 months. This is how I recovered a 17 point drop in SWKS so I know it works. My only concern is could end up with a bunch of #fuzzies when what I really want is #pietrades. However, once profitable could close out the #fuzzy and reset.

Will keep everyone posted.

#fuzzies #longcalls KR Driving across…

#fuzzies #longcalls KR

Driving across I76 toward Denver listening to all my rowdy friends have settled down sold Oct. 24 call for 4.95, bought for 2.40,currently unhedged by chance only, KR up big after earnings

Some observations as I closed…

Some observations as I closed out another week. Good 3 weeks 🙂 the pull back a few weeks ago really helped.

1. Critical mass on accounts seems to be around 50k. At that point the compounding really starts to kick in and the account becomes self sustaining for positive theta, #pietrades, income trades. Trades that need to be adjusted do not seem to affect the account value as much at these levels as well. Trading 6 different accounts with different values, lowest $3500 so can really see the difference. Each contract adds a lot more cash each week. 5-10 contracts is where the income really starts to compound and pay off. Even 3 contracts is a lot better than 1 unless talking AMZN or PCLN.

2. Some names are just better than others. GM is out as soon as it closes this week. Names with perceived high volatility but don’t really move around a lot and have good premiums (0.5-1% per week minimum) do the best and are easier to adjust.

3. I try to suck all the time value out of an option but once down to 0.2 roll it for better theta decay.

4. defending trades, easier to do it before the option goes way ITM or better yet, roll it before it even gets there. You will loose a little in time value but by rolling earlier you can stay ahead and continually bring in credits. Now if it is sitting right ATM I will wait until the last minute to roll it but if there is any time left, easier to roll early.

5. Taking a slight directional bias really increases returns. Allows to sell puts closer to ATM and also time call sales better.

6. For small accounts the #supercharger seems to work the best. Better ROI than credit spreads, less adjusting, less risk overall (defined) and more cushion for pull backs as you are already deep ITM. However, have to work the spread on entry or the exit is not as profitable. For any of my accounts under 10k I will be doing a lot more of these. 10k and up probably #pietrades with some #fuzzies thrown in. Occasional #spycraft as well but to be honest the #supercharger are doing much better when we have pull backs and more consistent gains.

Sitting on my hands until Fri. Hopefully we have a pull back, at least a little one where no one gets crushed 🙂

#fuzzy

Hello Everyone, I have a…

Hello Everyone,

I have a general question about putting together an equity portfolio. After speaking with several investment advisors, I realized that all of them have a very limited understanding of using options as investment strategy. They understand ETF’s and stocks, but that’s about it.

This portfolio is separate from the rest of the investments, so allocation for bonds, etc.. is not an issue.

Most portfolio ideas are around proper allocation between stocks, using high quality companies and dividend payers. Well, many dividend aristocrats have a nasty looking charts, like PG and JNJ. Also, the market is at the high level at this point for many stocks.

If you would be starting a new portfolio, what would you do?

Assumptions:

  • Value 100K (to make it simple)
  • Time horizon 10+ years
  • Preferably low maintenance portfolio, because of limited time for monitoring.
  • Would you use ETF’s, stocks (growth or dividends), options or a mix of everything?
  • I am thinking of PIEtrades as a starting point.
  • How would you allocate the funds?

All opinions are welcome.

#fuzzies, #pietrades

Monday #pietrades and a #supercharger…

Monday #pietrades and a #supercharger and a credit spread

Premium dried up but could still find a few trades that would make at least 1% in a week, 10% in a month or more.

1. 4 DTE MU 51 CC for 50.10 based on friday prices, that will change some at the open but it will be around there. That is my disclaimer for all of these, based on Friday prices.

2. MAR 132/129 put credit spread for 0.37 or so for 6.8.18 expiration

3. AAL 42 put for 4 DTE for 0.45 and puts and calls are at parity. Maybe @fuzzballl can save a few gallons of fuel and the price will go back up.

4. SMH 25 DTE #supercharger 90/95 call spread for 4.5

Question for @fuzzballl on #fuzzies. What delta do you usually start with on the LEAPs on the long term fuzzies? You going deep or more like a calendar? I find easier to adjust as a calendar but obviously a deep ITM LEAP is going to behave more like a CC.

#OptionsExpiration Here’s an early expiration…

#OptionsExpiration
Here’s an early expiration report. I’ve been thinking about @hcgdavis Chris’s #PieTrades ever since his first post. I never really got serious about them, despite being intrigued. I finally decided in the last few weeks that I absolutely needed to build a portfolio strategy and not just a trading strategy. What better way than his? Of course I probably don’t follow the rules straight down the line, but here’s a report for some Pie-like trades this week:
1. AMZN: On Wednesday when the stock was at 1600, I purchased 100 shares and sold ATM calls for $11.35. Assuming AMZN closes above 1600 today shares will be called away for total profit of $1071 in 3 days. I will sell an ATM put for next Friday at the close today. AMZN is inching down and might be shooting for a 1600 pin….it would be fun if the shares aren’t called and I can roll calls into next week.
2. CVX: Nice dividend next week, so I sold ITM puts last night for assignment. I sold $129 strike for .76, closed them this morning for 87% profit. With next week being div week, I will sell puts before Ex-Div to be virtually paid the dividend immediately.
3. IBM: I did the same div play mentioned above for CVX this week for IBM, sold the put priced with added div premium, could have taken 100% profit, but closed it yesterday for 80% profit. I already have 100 shares with calls sold for next week. The income stream on IBM from #Pie has completely covered the post-earnings decline in underlying.
4. NFLX: This will be my first assignment in a long time. Earlier this week I sold 1 $330 put for $3.10. It’s dancing in and out of profit today, but I’d like to take the shares and sell a juicy call for next week.
5. NVDA: I sold ITM puts at the open this morning and later covered them for 83% profit. I sold 257.5pfor next week @ 4.34.
6. SPY: I sold ITM (272) puts last night for either a scalp or assignment today. They were covered at 50% profit.
7. CRM: I sold ITM puts yesterday ($131) for assignment, I will seek 70% profit on those today or assignment.
8. MA: I sold several puts on MA this week and took 70% profit, but I’ve got 190 (@.94) and 192.5 (@1.60) lined up for next Friday.
9. I’ve got 1×2 spreads on for next week on BABA and LMT. In a choppier market I like the idea of 1×2’s for a wider downside range. But in an uptrend, straight naked puts are better for higher premium collection.

It’s just in my blood to cover these puts at a 70%+ profit level vs. taking the shares, even when I know it may be more lucrative to get the shares and sell the call side. I’m progressing! BTW I’ve started using IBD scores to find my #Pie candidates. Of all the stocks listed above probably IBM, CVX, LMT are the weakest in regards to IBD scoring.

#fuzzies, #supercharger

BABA earnings

#Earnings #ShortStrangles #CoveredCallCampaign
I’m long stock on this one. Legging into a strangle.
Sold May 4th 165 puts for .75.
Looking to sell 195 calls for .75 as stock rises off the lows.

#fuzzies

Expiration and learning/growth opportunities

Sometimes it takes blowing out an account (or 2 on SVXY) to really make you focus. I have always learned more with a 2 x 4 to the back of the head than with a gentle nudge. So I went back to the drawing board, looked at all my trades that worked, what didn’t, and some alternative ways to trade and it has allowed me to concentrate on what works since Feb. 6, 2018. You would have thought I would have kept something in my head from Aug. 24, 2015 but apparently not.

So here is what I have going forward in order of how I am trading in the future.

#pietrades. This is my bread and butter, pays the bills, making some of the losses back, easy to roll and adjust and works week in and week out no matter what the market does. Occasionally get stuck with one for a while, currently GM but can usually roll them to even.

#supercharger. Works better than credit spreads for really small accounts. I have learned how to adjust from @jeffcp66 and from the options for edge book, but because of my schedule I can’t always make the adjustment in time before they go ITM or breach the short strike. By then you are already controlling losses not making money. They expire for full profit most of the time because you set then up deep ITM, if assigned on the short strike easy to exercise your long, and very easy to convert to a #fuzzy or calendar leap if they explode. Then fairly easy to work back to even or profit.

#spycraft will be rolling some of these out on the mid size accounts again but found that the ones that were farther out in time were easier to manage. So these will be 21-45 DTE in the future, mostly using spy but some qqq, iwm and maybe even dia. 3-5 points between strikes so I can manage by buying in between the strikes when needed and will not let them go to expiration, will close at 50% profit or any profit that is decent.

CC straddles or strangles if have just taken assignment on a short put and at a support area.

CC return more on a cash basis than puts so with my #pietrades will be selling puts a lot closer to the money with the hopes of getting assigned so I can immediately flip to CC.

#fuzzies are a great way to convert losing trades into break even or winners.

The higher the premiums the easier it is to roll. So I am looking at the history of how often the move is exceeding the expected move. GM is a good example, expected move exceeded almost weekly but the premiums were crap so I have been rolling it for 15 weeks now. The higher premium names even when exceeded were usually back to break even in 2 weeks. Less work + more money = more free and fun time!

Never being short unhedged volatility again!!!

Sticking with those tactics and keeping it simple and profitable until the market changes and these no longer work and have to adjust again, but I think these are tactics that can work in any market condition.

With that said, bunch of rolls today and was assigned early on a few.

ERX #supercharger 20/25 assigned for full profit. Put on 21 days ago for 4.55 debit closed at 5 credit

EXPE 104 put expiring worthless :). That account will open #spycraft on Monday.

Smallest account AAPL 145/150 ITM call debit spread. 3 contracts max gain $207 for $1293 at risk. That is a 16% ROI if AAPL anywhere above 150 or 206% annualized. I will be doing a A LOT more of these going forward on the smaller accounts now that I have seen how they work for 8 weeks and even adjusted 2 to #fuzzies.

FAS 65 CC in 3 different accounts. Rolled for 1.14, 1.1, 1.15 credits and cost basis now 57.92, 55.74, 61.33 with FAS at 64.03.

Hope everyone has a good expiration and great weekend!

Some reversal, was there a…

Some reversal, was there a stupid tweet I missed or the Syria and trade war rhetoric back in the news?

#fuzzies

Mar 11 #Fuzzy Land +…

Mar 11 #Fuzzy Land + how to make $700 the easy way
Hi Bistro Buds! Last week was a bit of a roller coaster huh? On Thur, before NFP, some technical health indicators I use looked a bit weak. So I took profits on all the index #AtomicFuzzy hedges and closed 1/2 of the core positions. Little did I know what a smart move that was. Remember the Atomics have a double size hedge, so the double hedge covered all the losses on the 1/2 core, then set up the remainder cores for the big move up on Friday. I got lucky, but I try to only get lucky once, then it goes in the tool box for future intentional moves. I realized what an important trade the Atomics are for high volatility, however because they are more expensive, the profit targets need to be tighter. The double hedge in the Atomics accommodates higher volatility, but when profits appear, they need to be taken quickly since profits will appear in declining volatility–which affects the protective legs of Fuzzies.
Friday I took off almost all of the Atomics, and replaced them with regular unhedged #Fuzzies that are free to fly in a “risk on” environment. The price of April Fuzz’s has come down by over 30%. Indexes are my focus. I also took the opp, in a still-elevated vol environment, to put on some of my favorite 20DTE 25/23 delta SPX bitties.
We received our very first 1-Standard Deviation up move on Friday since the big down moves aged off. I think everything is looking rosy. I’ll be watching carefully for follow through early this week on market activity. The closed Fuzzies for the quarter has a 5-figure 35 handle now.

Oh I almost forgot….”How to Make $700 Easy”…. On Monday after hours when the market tanked on the Cohn announcement, I bought TEN TEENSY shares of AMZN. I thought it was ridiculous….how could 10 tiny shares help me in any way? Well…you know the answer to that now. This is going in the toolkit.

Good trading this week for everyone!

Sue 🙂

Hey @fuzzballl what do you…

Hey @fuzzballl what do you think about bi-directional #fuzzies on range bound names?

I was looking at some of my recovery trades and this may work. Buy LEAPs calls and puts, and sell weekly straddles/strangles against them. You can leave the original longs on, then just move the straddles and strangles around depending on how it moves. On most names could take in $2-4 credits per week.

Would not really need a hedge because you are long the put as well as the call but there may be a margin requirement if your strikes don’t line up after a while. Looking at 1 year leaps it would probably work. 2 years would take a few weeks just to break even. Here is a WDC example using Jan 19 leaps. I used to do this with multi -strike calendars and it was hugely successful until it just stopped working (once the VIX stayed below 15). However, it benefits from increasing VIX.

2017-12-01-TOS_CHARTS

A years worth of trading…

A years worth of trading and learning condensed into as few lines as I can write.

Had 5 days off to go skiing but was 70 on Wed and raining since, not good for skiing so am getting my taxes done early this year. I review every trade from the previous year so here are some lessons I learned, a few of them the hard way.

SVXY was my biggest winner until it became my biggest loser. Don’t hold unhedged short volatility. Probably better to use spreads or just buy VXX puts. Even if I had just left the #fuzzy would have limited my losses to 5 k.

#pietrades are very effective but occasionally get one that you have to roll for a long time and ties up a bunch of capital. You can eventually roll it for even or a profit but I think there may be a better way to avoid that but have not discovered it yet. I will be looking for the happy medium between tasty trade 45 DTE and 1 week with #pietrades to see if I can avoid having to roll as much. Recent segment on tasty trade says 30 DTE may be between them. Maybe I will start some positions there on Monday.

https://www.tastytrade.com/tt/shows/market-measures/episodes/shorter-duration-or-managing-earlier-01-12-2018

Managing winners really is more important than trying to save a large loss. Had I just closed SVXY at the end of the day when we were sitting at 70 I would have broken even. Instead now have 70-80% to make up loss.

Diversification is good, but once above about 10-12 tickers, tends to water down returns. I will be trading the same names a lot more this year.

CC can make more than naked puts because of the additional capital gains and skew built into some names. I will be doing more balance between CC and put sales.

#fuzzies are a good way to recover a position that really went the wrong way. Less capital at risk and if set up with a hedge limited risk. However, they take a while to repair a really bad trade. Months in some cases.

As much as I try and have the tools, I just can’t make directional trading work for me. Don’t have the time when I am at work and when I am at home don’t want to sit in front of a computer. However, timing the option sales improves returns and winning percentage. Will sell options more often at the pivot points going forward.

Selling options beats the crap out of any other trading strategies I have tried over the years. All my good trades (except SVXY) started with an option sale as the beginning of a position.

Look at positions instead of a trade. You may lose on sales the first 4 weeks but with recovery eventually can get out with a profit.

Weekly options make adjustments a lot easier.

My fellow bistro’ers gave me a lot of ideas that ended up being profitable. Thanks! 🙂

#spycraft also works and thanks to @jeffcp66 for showing me how to roll credit spreads, however, make sure it is in an account that can handle that. Tradestation cannot which is where I was trading those and with the run up the call sides were taken out but they would not let me roll. TOS fine so will be firing up some spy trades again soon with the TOS accounts.

Keep the ideas rolling, looking forward to trading with everyone again this year and maybe we keep a 2 sided market for a while 🙂

#pietrades and skew I have…

#pietrades and skew

I have noticed over the last few weeks that a lot of tickers have one sided skew. Just something else for us to take advantage of and increase returns.

For instance, SPY and all the other indexes seem to have put skew meaning the puts are worth more than the calls. Makes sense, a lot of people are hedging and buying protection. So makes more sense to sell puts on these.

However, a lot of individual names skew to the call side. Even AAPL which drags the rest of the market has a little call skew even in the weeklies. Makes more sense to sell CC or set up #fuzzies on these. Most of the leveraged ETFs skew to the upside/call side.

So going forward the #pietrades will be set up taking advantage of this skew. In a limited back test it looks like it could result in an additional 15-25% returns annualized. Not chump change!

So in the future #pietrades will either be CC, naked puts, or covered straddles depending on direction but also where I see an edge in the put/call skew. However, where I may normally sell a put, I may do an ITM CC if it looks like the skew will give an advantage. Also if I have a strong upside directional bias may set the initial trade up as an ATM covered straddle.

If anyone else finds additional ways to suck more premium out of the market on a weekly basis please post.

Taking advantage of this with synthetics aka #fuzzy may work as well.

#hashtags, #pietrade

SVXY additional thoughts

So without being back in contango SVXY is now up 1.2% on the day. I have been looking at percentages and found some info that the reason it dropped so hard was because of the difference in the short vs. long term VIX nunbers. Had long term vol. been higher, the drop would not have been as severe. It appears that you have to watch the potential spread and the wider it gets, the more damage a volatility spike will cause.

Since vol had been so low, the difference caused by the spike was more severe.

Anyway, I certainly won’t trade it unhedged again but I think it is a useful tool for income and trading.

Also, at these suppressed levels the option premium is not there to justify selling cc yet, at least for me. We start getting some decent premiums I will start selling weeklies against it but need at least 0.40 a few strikes OTM before I would call that decent. Had you sold the ATM you would already be rolling.

Once back in contango (vix below 17 should trigger), the drag from rolling the options should start to have a good benefit. Historically about 1-2% every 2 weeks in looking at the contango history.

Do we zoom back to 140, probably not. But if we can stay in contango for a while, we could be sitting at the 30-40 level again in 6 months. That would be enough of a recovery for me to close everything out and move the earned back cash to other vehicles.

I think the best way to trade this would be #fuzzies after a vol spike. Controlled risk, no cap on upside if you do not sell calls against it.

I know a lot of us were burned on this and I can feel your pain, 2 IRA accounts almost completely wiped out, but I think if we are patient, hedge gradually on the way up (buy puts in case it goes to zero), we can get back most of what we lost in about 6-12 months. Of course any additional vol. spikes will slow that down. Be patient but hedge.

Just thinking out lot. Anyone else have anything to add please comment……….

#fuzzy

UPS #FallingKnife Sold $UPS Jul…

UPS #FallingKnife
Sold $UPS Jul 20 100 puts @ 1.10. May add more if we get some additional move down.

#fuzzies, #pietrade

I ran a little experiment…

I ran a little experiment for about 8 months last year, did not post because I was not sure how it was going to work out but here is another easy to manage, high return tactic. I got this from options income blueprint. I do not subscribe to this particular branch of it, but easy to understand and I reverse engineered it using different names. They were using AAPL, LNG, and GILD.

It is called perpetual income engine. Very simple, take about 2-5 stocks that tend to stay in a range with good option premium. Start by selling a 1 week put either ATM or 1 strike below. It is either assigned or is not. If it is assigned immediately take delivery of the stock and then on Monday sell the ATM or 1 strike out of the money covered call. If not assigned, then sell the next week put. It is very easy to implement and does not take much time.

I used 3 tickers last year, TSO which has since become ANDV, XBI, and WDC. As I am starting to review my trades from last year for taxes, I see how effective it was. It takes a while to sort everything out but the results were impressive given the simplicity.

8 months, 3 contracts each name so only tying up about 50,000 of capital earned a 57.7% return. Annualized 86.55% return. Pretty impressive given the simplicity. Obviously I will keep this going and will start posting my trades now. They will be known as #pietrades.

I do not have all the numbers yet, but the last year appears that naked puts and strangle selling was the most effective, followed by PIE trades, and a very close third goes to #fuzzies based on return on capital. However the #fuzzies worked the best for recovery of positions that went really bad. Not surprisingly given the one-sided market credit spreads did not do as well last year.

I am always looking for the most efficient way to use capital, make money, and give me more free time. Based on these results I will probably focus on those 3 strategies most of this year and will add in the occasional #spycraft when the volatility is decent.

#perpetualrollingstrangles

Jan 9 #Fuzzy Trades This…

Jan 9 #Fuzzy Trades
This was a REALLY busy day. Let me start by saying these first 6 trading days of the year have been just amazing. Pinch-myself-amazing. So I’ve starting peeling some things off. Fuzzies that have upcoming earnings, or have had a lot of debit rolls and were yet again ITM just got yanked today.

1. Let me start with SPY….I no longer can account for where I am in the core debit reduction on my collective SPY trades. Hedges and unhedges are flying around my office like Chinese throwing stars. The best measurement I think is just nightly P/L updates on SPY until I’m flat.
SPY YTD: $4883.00
I still have 40 SPY Fuzzies that are hedged, and I may look to peel those off tomorrow and go flat, preparing for a reset.
2. CVX calls were down to about .20 extrinsic, time to roll. BTC Jan12 127 c 1.71, STO Jan 26 128c 1.77.
3. FAS (x20) same as above on extrinsic. BTC Jan 12 70c approx 2.40, STO Jan 26 72 c approx 1.87
4. DIA bought 15 unhedged fuzzies yesterday for trend trade, sold today for net $840
5. LMT facing another large debit roll and upcoming earnings, and protective puts increasingly farther away, closed 20 of these today for net profit of $5191.00. Anxious to reset with tighter puts in spread and distance—beautiful fuzzy!!
6. IWM same story as above, net profit is $2627.00
7. MU used the AS-BB osc to close a hedge for $1430.00 profit at osc low, then re-hedge. BTC Jan 26 47 c @ .54, STO jan 19 46 c @.47
8. RCL has had terrible technicals for weeks, used today’s strength to play against significant profit taking in other positions and remove this for loss. Net loss $1670.00.
9. EXAS Hedged 1/2 of my 20 fuzzies before their presentation this afternoon at the JPM medical conference STO Jan 19 55 calls @.75. The other half is still long term focused w/o hedging.
10. MNST so much for “Lazy River Fuzzies” BTC Jan 12 64 c for 1.34 STO jan 26 65 c for 1.32, got a buck for .02.

Fun Stuff
New Fuzzy: CRM Feb 110/110/105 for .32, sold Jan 19 110c for .74. Used Feb to avoid earnings. You read this right, the first-round hedge has already covered the cost of the core trade.

Really Fun Stuff:
FUZZY BEAR
COST Fuzzy Bear STO Feb 190call/BTO Feb 190p/BTO Feb 195c x 5 Unhedged 3.99 debit I put this on when underlying was trading close to 188 today, so there is nice profit. It’s very quickly approaching support, will need to play chicken with a hedge decision on this. Looked like squeeze would fire “bear” to me.

#fuzzies

Short post, promise but a…

Short post, promise but a few graphs that will take up some space. JPM as example. First graph is a synthetic long selling a 1 week 110 call without the downside protection. Looks like a regular covered call and it should, it is a synthetic covered call (this is what motley fool does a lot of). Second graph uncapped, looks like buying stock but there is no downside protection so would have to have the cash or margin to buy at the put strike. Third graph is a #fuzzy with 5 point disaster protection put. Looks more like a long calendar spread because of the extra cost of the put protection. That is why you would want to sell weekly or monthly calls against it, to lower the cost basis on the debit of the leap spread and the put protection. I personally would probably go 10 points wide but this shows you could do it in a recently funded IRA for 5000 max risk if JPM is not too big to fail.

I am not recommending this trade but I think @smasty160 has a similar trade running.

Hope that helps for people trying to wrap their head around #fuzzies and learn visually, I know I learn better with a visual.

2017-12-01-TOS_CHARTS

2017-12-01-TOS_CHARTS

2017-12-01-TOS_CHARTS

VRX

#Fuzzies

BTC VRX Dec29’17 22.5 calls for 0.04, STO was 0.27. Waiting to sell more for next week… could be a minute, could be tomorrow.

#fuzzy

12/27 #Fuzzies With just a…

12/27 #Fuzzies
With just a couple trading days left in the year, my focus today was getting fuzzy rolls completed on anything in-the-money that might be exposed to early assignment due to end-of-year activity.
1. CELG BTC Dec 29 106 c for 1.60, STO Jan 12 107 c for 2.70. Yep….big fake out on this. What was firmly ITM this morning quickly became OTM right after my roll. But that’s why NOT legging the roll benefited me. Crappy price on closing out the 106, but fantastic price on the 107. Roll out and up.
2. DWDP There was some really unique bullish UOA on this yesterday, so I took the risky move of removing my hedge so this can run unfettered. BTC Dec 29 71.5 c for .45, currently unhedged.
3. CSX BTC Dec 29 54 c for 1.26, STO Jan 12 55 c for 1.21, roll out and up.
4. New Fuzzy CVX Jun 125/125/115 for 2.33, Jan 12 127 calls for -.94
5. FAS hedge was down to about .04 so I wanted to get a straight-across roll for .80 to Jan 12, the executed roll-spread numbers were all over the place, but they netted out to my .80 credit for the roll.
6. IWM: Dec 29 153 BTC for .96, Jan 5 154 STO for .96….got $1.00 for nuttin’. Roll out and up.

Fuzzies that still need managed this week:
JPM (in the money)
LMT

#fuzzy, #longcalldiagonals, #longputdiagonals

DWDP

#Fuzzies

Earlier today BTO DWDP Mar’18 +72.5c -72.5p +70p for 0.95. I’m gonna wait to sell against this one, it’s in a tight volatility squeeze, hoping to see a pop. Thanks Sue! and Fuzzy for contributing.

12/26 Fuzzy land trades

NUE: I ended up closing this one for a net net loss of $340.00 How did I lose? It started off as a lovely trade. The round-one hedge expired with full profit. But the company then came out with lowered guidance and the underlying tanked over 3%, so I rolled the next week’s hedge down $2.00 to my synthetic line. We then saw a literal whipsaw correction which left me chasing each week with debit rolls to avoid assignment on my hedge, and ex-div is Thursday. Continuing debit rolls to get me out of assignment territory on the short calls would leave me with protective puts $15.00 ($15,000) away with no “bank” due to debit rolls. To me, chasing only makes sense when you know the underlying is going to stay bid, and to me a $340 loss on a 10-lot is pretty darn close to a scratch. I’d rather do a reset on this or another, vs. having $15K risk on a less-than-$100 stock.

AAPL: This takes the place of NUE. BTO Apr 170/170/160 for 5.27 debit, STO Jan 5 172.5 call for 1.32 cr

QQQ: BTC Dec 29 159c for .03, STO Jan 5 158 c for .47

CMCSA: I did a search on SP500 stocks with a weekly ATR of 2 or less, looking for stocks with decent premium for quick core debit coverage, but stocks that stay relatively stable with price movement. I’m just still playing around with finding the perfect candidates for #fuzzies. Take JPM for example…seems to stay in a very nice range for collecting that premium every single week. So anyway, CMCSA came up on the list, boring maybe, we’ll see how it works. BTO Apr 40/40/35 for 1.38 debit, STO Jan 5 41 call for .56.

BABA: Caught some bullish #UOA on this today, and has lovely weekly premium. Chart technicals not so great. But decided to do a 1/2 size fuzzy. Apr 170/170/160 for 9.43 debit (there’s a few bucks intrinsic in this), Jan 5 175 c for 1.93 cr.
I’ll do another full recap this Friday with every open position, net collection and debit recovery.

#fuzzy, #fuzzybear

MYL again

#Fuzzies

BTO MYL Apr20’18 +42.5call -42.5put +40put for 1.87. Had an order to sell calls for next week but didn’t get filled so I’ll get back to you tomorrow. Hopefully MYL will settle down and move sideways a couple weeks.

Merry Christmas!

I hope everyone is enjoying opening presents and eating great food! Not running scans for fuzzies like I am 🙂 My trading is very diverse, and probably seems a bit all over the place to some folks. So, since I’m so very interested in #Fuzzies, I thought I’d scale back my reports to be fuzzy-centric for now.
Here’s is a list of all my current fuzzies, what I’ve collected, and where I stand in the trade debit reduction:
1. JPM: Initial Trade Debit: $2.51 Total Collected: $2,120 Revised Trade Basis: $.39
2. DWDP: Initial Trade Debit: $1.44 Total Collected: $390 Revised Trade Basis $1.05
3. CELG: Initial Trade Debit: 2.38 Total Collected: $2,640 Revised Trade Basis: $(.26)
4. RCL: Initial Trade Debit: 3.59 Total Collected: $1,390 Revised Trade Basis: $2.20
5. FAS-1: Initial Trade Debit: 2.08 Total Collected: $780 Revised Trade Basis: $1.30
6. FAS-2 Initial Trade Debit: 2.12 Total Collected: $770 Revised Trade Basis: $1.35
7. *LMT-1: Initial Trade Debit: 6.20 Total Collected: $1500 Revised Trade Basis: $4.70
8. LMT-2: Initial Trade Debit: 6.20 Total Collected: $1600 Revised Trade Basis: $4.60
9. MU: Initial Trade Debit: 2.80 Total Collected: $1,220 Revised Trade Basis: $1.58
10. CSX: Initial Trade Debit: 2.24 Total Collected: $600 Revised Trade Basis: $1.64
11. QQQ: Initial Trade Debit: 2.73 Total Collected: $360 Revised Trade Basis: $2.37
12 NUE Initial Trade Debit: 1.87 Total Collected: ($150.00) Revised Trade Basis: $2.02
13. IWM: Initial Trade Debit: 2.25 Total Collected: $640 Revised Trade Basis: $1.61
14. MCD: Initial Trade Debit: 3.12 Total Collected $1070 Revised Trade Basis: $2.05

***Closed Fuzzies on LMT and TWTR total 1213 in profit
A couple of these have required debit rolls: NUE, IWM, QQQ, DWDP

#longcalldiagonals, #longputdiagonals, #syntheticstock

Thankyou for all the great…

Thankyou for all the great ideas this past year #syntheticstock #spycraft #fuzzies #vxxgame wishing everyone on here Happy Holidays. A special thankyou to @jeffcp66 for maintaining the best trading community out there IMO.

Fuzzy Land and “Fade Muse”

Right now I have on 12 #Fuzzies and the total amount of hedge/income premium that is sold and pending collection is $11,480 (spread mostly between this week and next week). Here’s why I love Bull Fuzzies:
–Less risk than a covered call (due to protection)
–Way less buying power than a covered call
–Same benefits of a covered call (except dividends)
–Positive Vega/Positive Theta (a covered call doesn’t have positive Vega)
–Better design than many diagonals I see
–When opened using 90-120 DTE but closed before 45DTE I should be able to maintain a really good chunk of the protective put value that would be exposed to theta decay

I know you know all this. Here’s where it gets interesting, and where I expect to now become your “Fade Muse”

i closed the #fuzzybear today. for a decent loss. Listen I hated this trade. I timed it all wrong. I put it on at the bottom of a swing vs. the top. I sized it too big for SPX. I made it a Feb trade so big theta decay was going to start soon on the long put. I’ve realized I like fuzzy setups (long or short) that cover the trade debit in 4 weeks or less, and SPX doesn’t do that. I’ve been battling it for this whole up move. Hedges can’t keep up with it. It’s beyond effective hedge range now. I ran every scenario and I just didn’t see a way out short of a big market crash, all the while theta was burning away. I was running scenarios in my head at night for saving the trade. I’ve been watching this week for a VIX upside warning to hit today (it didn’t). I can see some liquidation breaks hitting the market, but drivers are too strong for a big hit I think. Of course anything can happen, but I don’t want big (BIG) bets on market crashes in my portfolio. Today’s dip gave me the opp I needed to wipe it clean and wait for a better setup in the future.

Paid my 4Q taxes today, so just took the hit on it today. When all the laundry was washed and dried and put away it was exactly a $14K hit (net of premium collected). Luckily all the other fuzzies have been financing that so my account balance has been running in place.

#fuzzy, #spycraft, #vxxgame

DWDP

@vxxkelly did a recent trade on this and it reminded me it’s been on my watch list. There’s a lot of block trades on it today, and some calls being bought. So I did an unprotected #Fuzzy . I did a Mar 70/70 synthetic and sold Dec 22 71.5. I will add protection after an up move, for a better price. In a squeeze right now.
Didn’t capture my trades from yesterday, but a couple highlights:
1. Rolled the JPM Fuzzy hedge into strength to collect more on the next week
2. MAR #JadeLizard closed for 50% target
3. My SPX #FuzzyBear is troublesome. I didn’t set it with correct timing, so now I’m doing battle. I took off one short call on the synthetic turning it into a back ratio like @hcgdavis mentioned yesterday. I’m also using the AS-BB indicator for legging in and out of the hedge puts to get a few extra $$ on it.
#Fuzzies need rolls as Friday approaches: LMT, CELG, NUE. I’ve got substantial net profit on LMT so may close it all rather than roll.

12/11 Trades

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!