$DHI STC 8/2155/65 BUCS at 8.60. BTO at 4.64
$TQQQ BTC 1/15/2021 67 calls and STO 1/15/2021 90 calls. Took in16.50 in profit.
#LongLEAPs BTO $TQQQ Jan 2021 85 calls for 1.90, adding to the 90-strike calls previously purchased.
#LongLEAPs Started again: BTO $TQQQ Jan 2021 90 calls for 2.50. Filled instantly.
#LongLEAPs Sold to close $TQQQ Jan 2021 90 calls for 4.00. Bought yesterday for 3.65 (avg price). I believe I will get a better entry.
#LongLEAPs Bought to open $TQQQ Jan 2021 90 calls for 4.00. Will add as price drops.
$TQQQ STC 1/17/2020 66.67 calls at 19.60. BTO 11/12/2018 at 8.20. This was the position I had been selling calls during the year. 42 rolls in all. The 19.60 price was from a 21.50 stop. Option closed the day at 23.00. I believe I bottom ticked with a little help from Market maker. Now for the
$TQQQ BTO 1/17/2020 66.67 calls on 11/12/2018.
Sold calls against and rolled 42 times the last eleven months.
Closed out 60% of position this morning, leaving me with 4 long calls bought at 8.20 and
current price of 11.04. I have stop in at 9.95.
The six closed leaps yielded a 64% gain over the eleven months. 13.32 proceeds per contract versus the 8.20 per contract purchase price.
Thank you @jeffcp66 for the trade and the inspiration to keep rolling. You will forever be given the attribution for this proverb – A Rolling LEAP Can Gather Dough!
#LongLEAPs Sold to Close $TQQQ Jan 2020 66.67 long calls for 11.05.
Starting buying on Oct 4th, 2018, LAST year, for average price of 10.12 over 5 accounts.
I reduced cost basis by selling covered calls (and sometimes puts), but I’m behind on bookkeeping so not sure by how much yet. It looks like I reduced it by only a little on some accounts, up to about a half on others. I’ve decided to close now as I do not trust the market for remainder of year. I do think higher is certainly possible, but that we could also see a pullback soon that would not regain current levels until after expiration.
#LongLEAPs #SyntheticCoveredCalls Still holding long leaps, both underwater but cost basis now about zero after all these calls I have sold. I also ended up long some TQQQ stock at 58.00, which I will hold for the eventual recovery.
Sold $TQQQ June 14th 52 calls for 1.15.
Sold $SQ June 14th 64 calls for .97
#SyntheticCoveredCalls #LongLEAPs I’m still at it, selling weekly calls against my Jan 2020 66.67 long calls. I have been underwater and ITM on them for a few weeks, but the pullback allowed me to escape. I mistakenly forgot to close some ITM calls expiring Friday, so Monday’s gap down was super fortunate and allowed me to finally get above water.
Monday: Sold $TQQQ May 17th 68.5 calls for 1.26 (and covered short stock assigned Friday)
Today: Sold TQQQ May 24th 67.5 calls for 1.23
BTC $SQ March 15th 79 calls for .10 on Thursday. Sold for 1.00 last week.
BTC $TQQQ March 22nd 52 calls for 3.30 on Wednesday. Sold for 1.25 on Monday. Not filled on roll attempt today so will try again on Monday.
$TQQQ Rolled out and up BTC 3/15 52 call and STO 4/18 55 call for additional .70 credit
$BEAT STO 3/15 70 call at .70
$FB STO 3/15 177.50 call at .54
$EA BTC 3/15 75/85 BUPS at .50 STO on 3/15 for 1.64
$NFLX BTC 2/15 350 calls and STO 2/22 362.50 calls for 4.60 debit. But would gain 12.50 if called away.
$NFLX looked strong today. Stock at 359.97.
I played this one badly this week. I had rolled last week to ITM Feb 1st 67 calls. I had the chance Tuesday to close for a profit with the pull back all the way down below 68. But I foolishly went by sentiment rather than reality: I thought weakness would continue through the week. That’s what I “thought”. In reality, it was simply a must-exit opportunity. Sold the calls for 5.75… could have exited for less than 3.00.
Now, they’re going for 10.50 as SQ resumes its strong rally.
Lesson learned. When ITM on calls, take any opportunity to exit. Don’t wait for a .30 exit.
Bought to open $VXXB Jan 2020 20 puts for 1.75.
A starter position for a 12-month trade. My bigger target will be the 2021 LEAPs, which are still pretty expensive, but should lower in value by late summer, provided we don’t enter a bear market. I may also look at ATM puts and sell puts against them, but this OTM position is meant to be a cheaper play that stands alone without cost reduction.
#VXXGame #LongLEAPs Over the years I put a lot of research into the idea of buying long $VXX LEAP puts, since the symbol is dragged toward zero over time. I built an extensive spreadsheet showing how this strategy would have worked with every VIX leap expiration since 2006 except Jan 2009, during the financial crisis. (VXX was created in 2009, but there are models available of how it would have performed going back to 2004).
Other than Jan 2009, the 18-month to 24-month decline in $VXX is usually 60-90%; even as much as 97% down over 24 months.
So when I started buying the Jan 2019 VXX 20 puts on September 5th, 2017, the odds looked pretty good for a decent profit. I started scaling in and ended up with a total of 32 puts over multiple accounts, average price 1.603. I also sold some 50/60 call spreads against it, lowering that cost basis down to about 1.20.
But, guess what? Picked the wrong year! This is the first LEAP expiration since 2009 where this strategy did not work. And now $VXX is going away at the end of this month, replaced by $VXXB, which doesn’t have much volume yet. However, they HAVE finally added LEAPs, so I’ll be looking to start buying.
Also, because of the product termination, I closed my final short shares in $VXX today for 37.25. I was assigned 100 shares short for 27.00, and had managed to scale out of 30 of them when we dipped below 27.00 in September. Then, October happened.
If I was only selling calls and didn’t have #LongLEAPs, this would be a brilliant strategy!
BTC $TQQQ Jan 4th 39.5 calls for .05. Sold for .74 on Friday.
BTC $SQ Jan 4th 59 calls for .05. Sold for .79 on Friday.
Slight profit and about breakeven on what I sold yesterday, since both very close to being breached this morning. Will replace on next big move.
Also, BTC $TQQQ Nov 9th 56 calls for .35. Sold for 1.30 last Wednesday.
Now that I have a full position the call selling will continue to bring down cost basis. I won’t necessarily be holding this very long… I may close it if we reach new highs at the end of this year. I’m not so optimistic about the bull market lasting through 2019.
#LongLEAPs Bought $TQQQ Jan 2020 66.67 call for 11.00, adding to my position. I forgot to sell short-term calls on Tuesday’s rally, but that’s the plan!
#LongLEAPs I sold my stock and Jan 2019 60 calls on the 5th, when $SQ was at 94.50. Man, what a drop! Now looking to leg in long again.
Bought to Open $SQ Jan 2020 110 call for 7.40.
Sold $SQ Oct 26th 80 call for 1.50.
I play this one a bit differently than @fuzzballl, going fairly far OTM rather than ATM. SQ topped out at 101.15 on Oct 1st, and this LEAP was going for 19.00 and higher.
#LongLEAPs Bought $TQQQ Jan 2020 66.67 call for 12.60, adding to my first one I bought for 17.60 last Thursday.
#LongLEAPs Sold $TQQQ Jan 2020 83.33 call for 6.30.
Today, as $QQQ just notched an all time closing high, you can see the TQQQ is about 5% below its highs. This is due to the compounding effects of a 3x leveraged product. The same force that drags NUGT, DUST, GUSH, DRIP, and others downward will drag on TQQQ. Because we’re in a long-term bull market, it is harder to see this force in the chart, but today’s high gives you a good snapshot when comparing to QQQ. Thus, I like selling farther out 83.33 call against my long 2020 50 calls. I just sold 1 today (against the 3 longs) and can add more at better prices or different strikes. I am ALSO still selling short term calls, so this will throw my deltas out of whack, but I’m really looking at each of the short calls separately and less at the full picture. Upside risk on a ContangoETF is not difficult to manage.