#optionsexpiration a day early. Some…

#optionsexpiration a day early.

Some of these trades are from yesterday, have been to0 busy at work to post.

#pietrades #lizardpies
ALXN 120/129/130 for 2/22 for 1.25 credit yesterday off an 0.85 roll the previous week.
EOG 98.5 put for 96.75 cost basis off a roll
LNG 65 puts for 2/22 STO yesterday for 0.56 credit
TRIP 57 puts for 2/22 for 0.66
XBI 84/85/86 total credit now 4.19. Have been rolling 3 weeks.
TQQQ 51 CC rolled out 43 DTE to 54 CC for 0.25. Cb now 56.79
TQQQ 51 cc rolled out 43 DTE to 52 for 0.10 for cost basis of 57.00
FAS 1 DTE 56.5 cc rolled out 8 DTE for 0.47 credit. Cost basis 54.17
EOG batch 2 98.5 8 DTE cost basis 97.1

#fuzzy
GILD 70/70 cost to 7.72
XBI 80/80 rolled for 0.56 credit. Cb 12.56
LNG 50/60 rolled for 0.33. CB 12.93
GILD 67.5/69 rolled for 0.26 cb 6.93.

Finally some consistent results last 4 weeks. Of course the market screaming higher does not hurt. But mostly I was able to unwind a bunch of accumulated rolls and finally pull some cash out of the market again.

Since Jan 1 have been officially working with the advisory service. Obviously I cannot post those trades but will keep posting other trades I find and really like how many of us here are willing to experiment with different tactics to see what really works the best with real money in real time! This is a great trading group and I will stay involved, thanks to many of you I survived the 20% correction which now seems to be over and even came out ahead. This down turn was WAY better than the SVXY debacle last Feb. 6 2018, not that anyone here needed reminding 🙂

One thing is certain, I will be keeping a general market hedge on now all the time. May only need it once or twice a year but then it is a lottery ticket. To keep it from costing too much will probably use a back ratio or risk twist trade. Will set it up to cover a 10% correction. Anything beyond that it becomes a mega lottery ticket.

Cheers, Chris

Expirations, rolls, etc.

#fuzzy
EXPE have the 120/120 and 125/126 expiring tomorrow. Cost basis 9.43. It is really holding onto the time value, I have over 5k of theta decay on this position alone. Should crush with earnings tonight and either way it swings this trade is up huge and will close all of it tomorrow then reset. One of my biggest winning trades so far, especially from a recovery standpoint. Down a lot earlier this year, up 17k+ now 🙂
GILD 70/70 adjusted earlier this week. Cb 8.00, I miscalculated below.
XBI 80/80 rolled out to next week for 0.42 credit. Cb 13.13
LNG 50/60 cb 13.26, adjusts next week
GILD 67.5/69 rolled another week for 0.41 credit. cb 7.19
Some of these trades should be scratched in another 2-3 months, I hope, then have pure income.

#pietrades and #lizardpies
SQ 68 put rolled up to next week 70 for 1.11 credit. Cb 68.89 if assigned but will be out before earnings.
EOG 98.5 rolled out 15 DTE for 0.67 and 0.3 credits. Cb 96.78 and 97.1 Tradestation having issues with option station pro. However, if you call them they will not charge you for the broker assisted trade.
TQQQ 51 cc cb 57.04. Will roll aggressively
TQQQ 51 cc cb 57.10 same
FAS 56 cc rolled out 1 week and up to 56.5 for 0.13 credit. cb 54.64

Hope everyone has a good expiration, volatility back today I assume because of the idiots in DC comments on the trade wars.

#lizardpies XBI decayed enough I…

#lizardpies

XBI decayed enough I rolled it to an 83/83/83.5 jade lizard for 1.59 credit. cb 81.41 if assigned.

#optionsexpiration, adjutements, rolls, new trades…

#optionsexpiration, adjustments, rolls, new trades

#lizardpies
XBI 78/82/8.25 should expire tomorrow for 1.26 profit per contract
AMAT BTC the 39 puts for 0.29 that expire tomorrow. Sold for 0.71 last week. Tradestation so can’t trade until tomorrow. I think I will replace it with a #pietrades 108 CC on IBB currently for around 106.89. Obviously that will be different tomorrow.
FAS STO 56 cc for 54.77 expires in 8 DTE
TQQQ batch 1 50 cc rolled out 22 DTE to 51 CC for 0.26 credit. Cb now 57.04 and will have to stay ahead of the rolls.
TQQQ batch 2 50 cc rolled out 36 dTE 51 cc for 0.55 credit. Cb 57.10 and same as above.

#fuzzy
LNG 50/60 8 DTE rolled out to 22 DTE for 0.3 credit. Cb now 13.26
All the others were updated and expire next 1-2 weeks.

Back to even from the start of the October volatility. Now keep working on getting back to even from SVXY losses. Expect at least another 12-24 months unless everything goes perfectly, hahahaha, yeah that would happen 🙂

Something I noticed about #fuzzy over the last 3-4 months. As long as you keep rolling and generating cash they seem to withstand market volatility better than many other trades. In a few small accounts, I generated almost 50% of the value of the account in cash over that time even though the paper value was steadily declining. Have to agree with @fuzzballl, they are flexible. However, going forward I think I will take profit and then reset as we discussed earlier. I think it would make management easier and also lock in profits and also allow you to move the strikes more effectively as the market moves.

Clearing the decks/resetting several accounts

Obviously what I have been doing the last 4 months has not been working. Hit all time low balance again Jan. 4 this year. So I am going back to what works and has been proven through several market cycles and rebuilding the equity curve. At least last month have recovered and higher than the Feb. 6, 2018 SVXY losses and lowest balance from then.

So I am clearing out losing trades, closing a bunch of #fuzzy, some at profit, some at loss, and re-deploying capital. My trading will mostly consist of #pietrades, #lizardpies, #spycraft and the occasional directional play/scalp and a few #fuzzy

Some closings today, but have 2 more weeks to clear out the primary account.

#fuzzy
EOG 110/110 closed for 5.16 loss per contract. It is so far ITM can’t get decent premiums anymore. My intial loss was 17 so this tactic works.
EXPE closed the back ratio credit spreads, left with 120/120 and 125/126. This is sitting on a profit and will close it over the next 2 weeks as the shorts expire. Cb 9.43 and right now can close for min. 11.45. another week of decay that will be better. Lost $600 on the credit spreads after butterflying to control risk (could have been 2000).
MU 35/35 now ITM Cb 14.80 and will roll next week.
WDC 40/40 cb 18.49 and waiting for the short to implode after earnings today.
XBI 80/80 cb 13.97
LNG 50/60 rolled 15 DTE for 0.5 credit for 13.56 cb.
GILD 67.5/69 rolled 15 DTE for 1.3 credit. Cb 7.60

#pietrades and #lizardpies
XBI 78 put 82/82.5c 8 DTE for 1.26 credit
TQQQ 50 CC rolled out 15 DTE for 0.45 credit. CB 57.56 so will manage aggressively
TQQQ 50 cc lot 2 cb 57.30 same
LNG STO the 8 DTE 63 put for 0.92. CB 62.08 if assigned. LNG is my best performer for the year so far 🙂

#spycraft
Batch 1 closed for a $214 loss after the back ratio adjustment did not work. SPY reversed.
Batch 2 closed for a $344 profit, but only because tradestation messed up and sold 20 contracts of the put side instead of 10 so even with the back ratio that did not work I made a few $. Now I am on hold in this account until tomorrow. Tradestation does not give you credit for closed trades until after midnight so I only have $614 buying power in this account until tomorrow morning. Another reason I prefer TOS over TS.

What I have learned most recently.
#fuzzy works well but I think the real value of them is to close them once you have a profit. The EOG trade would have worked if I had just closed it early. If you still like the trade, reset the strike prices. I will use these as shorter term trades out 1 week or a month, take my profit and reset. Commissions are cheap enough to do that most of the time. A 6 % return in one month and then resetting is 96% annualized. Instead of trying to take the cost basis to zero will just take profit and reset. Will probably just use a 90 day option for the long side.

#spycraft
I think the best adjustment when the short strike is challenged is to butterfly it. You can set a defined p/l by broken winging it and skewing it if you have a bias. Just to stop losing can simply butterfly it. Seems to be the cheapest way to do it and least affected if it reverses. Yes you may lock in a loss, but much better than a full loss on the credit spread.

#pietrades and #lizardpies
Upside directional bias set it up as a synthetic long.
No directional bias, set up as a straddle jade lizard.
Downside directional bias set it up as a strangle jade lizard.
But I think setting it up as a jade lizard initially gives more flexibility in managing because of the extra credit. I will be doing A LOT more of these.
Can also leg in and out depending on how the stock moves.

Pouring here so going to work out in my garage gym. First bike race is in 8 weeks so need to lose 10 pounds and make friends with my fast again 🙂

Hope everyone has a good expiration!

Finally unraveling some trade adjustments…

Finally unraveling some trade adjustments over the last 14 weeks and bringing in some profits again. Have been flat for 3 months but a very nice week today 🙂

#fuzzy
EOG 110/110 with the back ratio ccs wrapped around it from the other day. With the slight pull back this morning I was able to sell 5 99 calls for 15 DTE for 1.97. What this did was lock in a no loss trade on the credit spread. Original trade was the 97/98 ccs. Back ratioed the other day. With todays trade I locked in a gain of $25 total if it closes at 98.02. Anywhere above 99 or below 97 that expands to $505. Basically inverted a butterfly but because of the gains from the back ratio now have that part of the trade risk free.
After the original post, rolled the 22 DTE 110 put out to 43 DTE for 0.45 credit. Cb now 13.96.
EXPE 120/120 125/126, 117/118 ccs and 118/120 ccs at cost basis of 9.43. Managing same as EOG. Any of the short strikes breached will delta neutral hedge (usually buy back half of the shorts).
GILD 70/70 cb 8.48. Will roll in 2-3 weeks.
MU 35/35 cb 14.80 and will roll 1-2 weeks
WDC 40/40 cb 19.11. Roll next week. This will be the longest to recover. Good thing I have a lot of time.
XBI 80/80 at 13.97 rolls in 2 weeks.
LNG 50/60 1 DTE rolled out 15 DTE for 0.48 credit. Cb 14.06
GILD 67.5/69 cb 8.90 and rolls in 2 weeks

#pietrades
LNG batch 1 61 CC should be assigned tomorrow at 57.70 cb
LNG batch 2 61 cc should be assigned at 58.53 cb.

#lizardpies
SQ should expire for full profit tomorrow. 667.50 profit on 3 contracts in 2 weeks. Finally an easy winner chicken dinner.

#spycraft
22 DTE 242.5/240.5 pcs for 0.20 credit. Small account so only 5 contracts. However, once batch 1 LNG expires this is one of the accounts I will re-dedicate to #spycraft with the mechanical management rules. Trying to double the 2 accounts in a year. Easy to keep track of since the new year.

I will be legging into an out of a lot of trades now. Anytime I can lock in a gain will do it. No guessing about what to do when short strikes are violated, they will be delta neutral hedged or shut down at a minimal loss, no questions asked. After looking at 4 years of #spycraft trades, controlling losses was the number 1 way to make this tactic profitable. The other way appears to be applying some timing by legging in and out of sides.

Lots of trading and work,…

Lots of trading and work, not much profit. The #fuzzy trades hold up well but since I am so far out in time and so far ITM on some of these now, not much income or fast theta decay. Had I known we would be in a full bear I would have unhinged them and would be collecting profits now.

#fuzzy
EOG 110/110 puts are now way ITM. Market makers are being greedy. I have an order in to roll the 29 DTE out to 43 for 0.45 credit but no one will take it. If I can’t roll it will reset or shut the entire thing down for about a 6 point loss as it gets closer to expiration. Hoping for at least a little bump in oil prices. cb 14.64
EXPE 125/126 and 120/120 rolled the 15 and 22 DTE out to 36 and 43 DTE for a total of 2.1 in credits. Cb now 9.63.
GILD 70/70 nice bump today. Cb 8.48 and will roll in a few weeks.
MU 35/35 cb 14.80. Getting dragged down further into the black hole by AAPL.
WDC 40/40 cb 19.11 same as MU.
XBI 80/80 cb 13.97
LNG 50/65 cb at 14.54
GILD lot 2 67.5/69 cb 8.9
Most of these are out 15-22 days before further rolling.

#pietrades
TQQQ 50 cc at 57.60 cb. Will either roll to a leap in 2 weeks or hope for rebound. IRA so I can sit on it but would like to be generating some income.
TQQQ lot 2 50 cc 58.10. Same story.
LNG 61 cc expires next week, cb 57.7 and if expires ITM will be first real winning trade in 13 weeks.
LNG lot 2 61 CC cb 58.53 sam as above.

#lizardpies
SQ 55.5/55.5/56.5 straddle expires tomorrow rolled down to strangle 54.5/55.5/56.5 for 0.49 credit. Total credit now 2.04 with cb of 53.46 if assigned and no risk to upside.

I really think the jade lizard will be an excellent tweak to the #pietrades and possibly increase returns another 10% annualized. As I unwind some of these other trades will be putting more of these on.

I also need to be much better at directional trading!!!!

As I have said before, the income will not keep up with the drops, as much as the market is a 50-50 proposition, the more I trade the more I realize being right on directional makes a huge difference to the success of a trade and profits in general.