Too busy at work to check in this week, some interesting trades but TRLY I will watch with amusement from the sidelines:)

After rolling and recovering earnings trades for weeks equity curve finally moving up again. The theta decay finally caught up the the drops in AMAT, WDC, MU and the rebound does not hurt but now ITM on some of the shorts so will have to move them back the other way but have a few weeks.

Rolls/new trades/ #pietrades and position update.

#fuzzy coversions
MU 55/50 2020 LEAP recovering. Cb 9.70. and will roll short call for 15 DTE soon.
WDC 60/58 2020 LEAP now ITM. 36 DTE on the short so will roll up when the time value erodes. CB 15.41
EOG 115 2020 LEAP Cb 9.96. 22 DTE on short side, waiting for time value to drop.
XBI Lot 1 80/97 2020 LEAP cb 19.56 and short calls 22 DTE.
LNG 50/66.5 2020 LEAP cb 19.25 22 DTE on shorts
XBI lot 2 95/98 2019 LEAP next week rolled to 22 DTE for 0.67 credit. Cost basis 4.82. Also have 87/95 at 5.68 and 95/95 at 2.2. Trying to take these to zero cost basis then roll cash into new trades.

TQQQ lot 1 65 CC cb 63.20, will let assign next week and reset
TQQQ lot 2 65.5 cc cb 63.15 and will let assign next week
LNG lot 1 cc 66 rolled 1 week for 0.49 credit. Cb 64.23
LNG lot 2 66 cc rolled a week for 0.40 credit. Cb 64.32

1 new #pietrade and may become a ladder.
EXPE 43 DTE 126 put sold for 2.95. Cb 123.05 if assigned.

Hope everyone else is having a good week and anyone in NC hope things are drying out.

#pietrade conversion to #fuzzy

MU sold stock for 52.61 against cost basis of 55.33 for 2.72 per share loss. Took the proceeds and bought a 55 2020 call to create a LEAP calendar. Frees up 40k in cash/margin for other trades.

Now my new cost basis adding in the purchase of the leaps at 10.60 is 13.32. Will sell weeklies against it with goal of decreasing cost to zero at some point. Have 75 weeks left (already have short 55 for next week) so that means only need about 0.17 per week to break even. Anything extra is BONUS.

I may do this more often for #pietrades that move a lot and are taking longer than normal to get back to even but I still want to stay in the ticker. MU has good premiums and want to stay in it but did not want to have 1000 shares tying up so much capital.

May do the same with WDC later in the week.

Will keep posted as to how it works out long term.

#pietrades

Looks like I am being assigned or assigned early on TQQQ, FAS, MU, and will sell calls on Monday. This morning’s bounce looked like it would make these a lot easier. We have comcast at work and entire east coast internet was out which made work hard with an EHR. Looks like the bounce fizzled later afternoon.

Anyway, for those with big accounts, you can take #pietrade one step further. If I had bigger accounts I would do this. The decay is great on weeklies, but weeks like this they all tend to get run over at the same time. I personally would run 3 different names in each account and since I have 5-6 accounts that would give good diversification. My ultimate goal is to sell #pietrade ladders. Start the process 21 DTE. Each week add a new trade in the same 3 names. But for example using XBI. The 7 day ATM put is going for 0.77-.99 (95-96 strike) so can’t even get a buck. But if you go out 21 DTE you can sell the 92 put for 1.03-1.10. Three more dollars OTM so less likely to be breached and if you are breached probably at a better place to take assignment because it is a much bigger pull back. The only draw back is you are in the trade 2 more weeks and tying up capital.

But if your goal is income and you have a large enough account, it would be highly effective. I have tried it on small scale and whenever I was assigned they ended up wining in 1-2 weeks because it was usually at the end of a pull back. I could only run 3 contracts on 1 name or 1-2 contracts on 3 names. So it was not bringing in my income goal but when the accounts are larger this will be my main trading tactic.

Ultimate goal is 10 contracts on 3 names in each account for 3 weeks rolling. If you can get $1.00 or better that would be $3000 a week x however many accounts you have. Nice paycheck either way 🙂 To do that probably need a 300k account if using margin or twice that in a non margin account. You would also need names around $100.

Have a great weekend, update which calls I sell on Monday. If looks like more of a rebound I may leave them uncovered for a few days.

#fuzzy