I took profit on my CODX diagonal (may/aug) and reset the trade this morning into something you might find interesting. I bought a 1/2 size stock position and sold the June 18 straddle for $8.15. This creates a full size covered call profit structure with just 1/2 the stock size. As you probably know, selling a put equates to a covered call. So I have a full size covered call ceiling with only 1/2 the stock. Takes up less buying power. Got much more selling the put than the call, despite it being ATM at the time. Because of that, the smarter trade would have been just selling puts for a full size position (in hindsight).
I hear earnings are tomorrow….
Thanks for the idea guys, I’ve placed the following diagonal:
Bought Aug 9 calls for 6.76
Sold May 15 calls for 1.40
#longcalldiagonals First step Bought SPXL Jan 2021 46 Call @ 12.00. 1 comtract (Only contract today). I will cover as thing recover. Also Trying for TQQQ but no bites.
This was a busted #ShortStrangles that I turned into a #CoveredCalls position. After selling for quite a few weeks I’m using this bounce to book it for a .10 loss. Happy to be out and freeing up some room for earnings season.
Sold to Close SWKS Covered Stock @ 99.23 (bought for 99.33)
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)
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
#SyntheticStock -Been waiting for some sort of a pullback to get in this long term Whiz style (although he prefers the #LongCallDiagonals for some reason).
Sold NVDA JAN 17 2020 190.0 Puts @ 37.75
Bought NVDA JAN 17 2020 190.0 Calls @ 43.70
Adding tight disaster puts. If it implodes I’ll roll this down and re-invest the profits back into more longs.
Bought to Open NVDA JAN 17 2020 185.0 Puts @ 35.05
This gives a net debit of 41.00 for the Jan 2020 position. Add the 5 point max downside and get a max loss possibility of 46.00. Based on that, and the 110 weeks remaining in the trade I only need to average about 42 cents per week in sales to cover the absolute worst case scenario. And…NVDA has great weekly premium.
Sneaking my first sale in this week to cover the small DIS loss:
Sold NVDA DEC 8 2017 195.0 Calls @ .48