#VXXGame #LongPutDiagonals i entered this trade on Sept 1st when VXX was at 46.08. I bought the $VXX 2019 LEAP 20 puts for 1.80.
Today, VXX is HIGHER (52.00 as I type) and those puts are ALSO higher… mid price about 3.00.
Shows how much volatility drives all prices higher. If I get a chance to buy more under 2.00, I will.
#VXXGame #LongPutDiagonals #SyntheticShortStock
Sold $VXX Feb 2nd 26 call for 1.35.
With VXX perpetually headed to zero, I am selling short-term puts AND calls against my Jan 2019 long 25 puts.
#VXXGame #LongPutDiagonals #SyntheticShortStock
Sold $VXX Feb 16th 25 put for 1.15. Just trying this out ahead of some possible consolidation. I will NOT let this go ITM, but I would like to chip away at some of the loss I took in selling puts months ago. I forgot to sell some short term calls yesterday, which I had been planning on a spike.
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)
#SyntheticShortStock #LongPutDiagonals
Took the cue from @fuzzballl and closed one of these (I originally had 2). Can’t make a whole lot more on this since we’re getting closer to zero on the stock.
Closed $UVXY Jan 2019 positions:
Long 30 put, Short 30 call, Long 40 call for 23.91.
Bought for 17.10 on Aug 17th.
That’s a $6.81 profit, BUT I also lost $818 total in the attempt to sell short-term puts. Since I had 2 positions, that’s a $409 loss for each, so profit on this one is $272.
As for the other one, I previously closed the call spread for 1.60 (on Dec 20th), and I put in an order to close the remaining long put for 24.50, which price is already near. That would mean a $171 profit on that half.
I am keeping my $VXX version of this open, since the stock is still at 25.75 so my long 20 puts still have a lot to gain. I have closed a third of my short call spreads, and I added more long puts “naked” anyway, so I’m long 18 puts, currently at 4.68, average purchase 1.77. I lost a bigger bundle on the sale of short-term puts on VXX, but my ending profit on the long puts will make up for it and them some.
I will look to do this again when they launch $VXXB with the 2020 LEAPs. But that time, I will skip the #Fuzzy hedging and just go with the synthetic short.
#SyntheticShortStock – Next split has to be soon so I’m now fully loaded after closing the short VXX the other day. I’ve rolled my short puts out to 5 strike 2020’s. I’ll probably ride those into the ground unless we get a huge spike but should easily be offset by this position and should be able to ride 2019’s down again and 2020’s at least twice. I’ll roll them another year if I can but not sure if we can roll when they become “post split” options.
Sold to Close UVXY 30/30/55 Synthetic Short Stock @ 23.47 (bought for 14.91)
This was all just a big experiment when I first suggested it back at the last split. I’d have to say a stress free huge success along with the VXX short!
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
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
#LongPutDiagonals #VXXGame These trades were all put on late August or early September.
$UVXY Jan 2019 long 30 puts, bought for 19.10, now 24.02
$UVXY Jan 2019 30/40 call credit spreads, sold for 1.96, now .70
$VXX Jan 2019 long 20 puts, bought for 1.77 (avg price), now 4.20
$VXX Jan 2019 50/60 call credit spreads, sold for 2.21, now 1.00
(yesterday, closed one call spread for .90)
The “diagonal” portion of these trades is currently dormant, as selling puts in these was a folly in recent months. I have not calculated total losses from the attempt, but it did take a bite out of the above profits. I anticipate scaling out of these trades starting sometime in the summer.
I also bought these cold on Sept 5th… wish I had more:
VXX June 2018 25 put, bought for 1.33, now 4.17
VXX Jan 2019 25 put, bought for 3.46, now 7.18
VXX Jan 2019 15 puts, bought for .61, now 1.83.
Look for the next volatility spike and reverse splits to get long 2020 LEAP puts.
#LongPutDiagonals I got out of all short puts awhile back, letting my $VXX Jan ’19 long 20 puts to prosper unheeded. Mid-price currently 3.60, with avg purchase was 1.77. I anticipate closing these next fall for over 10.00.
Closed $VXX Dec 15th 30 call for 1.75. Sold for 6.50 (avg price) in October. Leaving one more to exit cheaper.
A lot of WDC shares will be assigned tomorrow at 84-86 strikes, that will free up a lot of cash for next week. I am trading a chunk of my account as trading reserve perpetual income engine style. Basically take 3 names each week and sell weekly calls or puts with the expectation of being assigned and then roll and repeat. I held these for a while because the premiums leading up to earnings was great but now so far ITM better to let them call out and start over. The current tickers I am doing this with are EOG, WDC, and XBI but I switched to GILD. Should have stuck with XBI. GILD now #longputdiagonals. Works best with names that stay in a range with good weekly premium. I will also use SWKS, EXPE, AAL, FSLR, GS, TMUS, VLO, ANDV (used to be TSO), UAL, LUV, AAPL, GS and looking at MON but have not watched it long enough and hoping IBB will work after the split. Basically anything that will get me close to 1% return per week on risk on weekly option sales. I stick with the same 3 names until they break out of their range or the premiums drop then move on to another 3. Stupid simple but very effective.
Rolled SVXY this week to 12-8, 100 put for 4.25, sold for 1.79, one for the team. if assigned cost basis will be 94.65.
SVXY Dec. 55 put to Jan 18 for 0.85
50 put same for 0.70
TQQQ rolled 120 this week call to 12-8 for 1.2 credit sold for 1.81
Should have a lot of trades Monday and will start the SPY credit spreads/iron condors @jeffcp66 style as well for anyone that wants to follow. Start out 3-4 weeks (21-28 DTE), 3-5 point spreads in a small account so only 2-6 contracts then add a new one each week until 3-4 weeks of ladders. Goal is to double the account in a year and if I can bring in even $125 a week and control the losses should be attainable (it is only a $6500 account). Will adjust anything that goes ITM as @jeffcp66 does, either roll or reverse and offset difference with additional spreads. I may try adjusting them as soon as they hit the short strike to see if that would limit the losses but will keep enough cash on had to convert to calendar, diagonal, or butterfly if we have a 3-5 STD move like Aug. 15. Should be an easy enough experiment and will know how well it works in about 3 months.
Happy Thanksgiving for those checking out early and travelling!
GILD is being my PIA trade. Down from 84.75 to 70.63 in less than a month. Usually I can roll to keep up but this thing has violated every support level over the last 6 months and keeps dropping even with institutions starting to buy it now. And the premiums are not high enough to keep up with the drop so each roll was just giving me higher margin requirements.
So anyway, I hedged it to limit my losses to $2851 but is fairly complex. Still short 8 puts at various strikes and expirations over next 17-31 DTE from 78-72. Bought 8 Jan 19 77.5 puts so those are now calendar and diagonals spreads and will roll the puts as the time value evaporates. They cost 12.26 and have over 60 weeks left so should be able to cover those with put weekly put sales and aggressively rolling down to get back to even but will need to add 4-6 to cover the rolls on the puts already. So I need to collect $18 in premium over the life of the LEAPs.
Also rolled 12/1 76 call to 71.5 and converted to synthetic short to cover my 300 shares from a further drop. Will roll the synthetic each week until we have a true reversal and will try to get a credit each week.
Credit of 1.04 on the call roll then BTO the 12/1 71.5 put for 1.80.
So now my losses are capped to what I am already in the hole and hope to make that up with weekly sales and rolling.
Ultimate goal is now just to break even. Learned long ago I don’t need to be right, just want to make $ trading.
So this will be a #longputdiagonals trade until I can scratch it. I may convert the calls to LEAPs with next roll for a true #longputdiagonals.
Also freed up a lot in margin so can now add some other trades.
I have a question about VXX and delta.
During this wild bull market, I’ve been buying SPX calls and VXX puts. I buy the calls at about a 60 delta with a 200ish DTE. On the TOS and TastyWorks platforms, the PITM percentage is similar to delta. I use PITM because several years ago Sosnof made the case PITM is a better estimate for the probability of expiring in-the-money than is delta.
So this brings me to VXX. Delta and PITM are not even close to the same. At 200ish DTE, they are about 25 points apart.
My question is why are PITM and delta so different for VXX, and which is a better estimate of the probability of expiring in-the-money? I ask because it clearly affects strike selection and potentially affects when to roll or close.
#LongCallDiagonals -Not in this yet…waiting for 2020’s but here’s what I’m looking at based on Jan 2019 numbers
1. Sell 23 puts and buy 23 calls (synthetic long stock)
2. Buy 20 puts for protection for disasters
All of that for a .75 credit so max loss of 2.25 so only need to sell 3.5 cents per week to cover max loss. Anything above that goes straight to profits.
#VXXGame My #LongPutDiagonals have my account leaning short volatility. This means it costs me to sell volatility, but credits me to buy it. I cleared a couple short positions to preserve powder for more spikes:
BTC $SVXY Dec 15th 47.5 put for .89. Sold in May as part of a strangle for 12.90, pre-split.
BTC $UVXY Dec 15th 91 call for .39. Sold yesterday for .725
#VXXGame #LongPutDiagonals In chronological order:
Sold $VXX Dec 15th 30 call for 7.50, adding to my position… switching the failed covered puts to calls, which have much better chance of surviving.
Closed $SVXY Jan 2018 97.5 call for 13.10. Sold for 3.125 (effective price) in January.
#Rolling the above to March 104 call for 13.35. Likely have to be rolled again, but at least I got it higher.
Closed $VXX Oct 27th 44 put for 6.75. Sold for 5.85 on Sept 29th as a roll.
Sold $UVXY Dec 15th 91 calls for .70 and .75
#vxxgame experiment 2
Was out on a bike ride before sunset and a thought hit me (almost hit a squirrel and a bald eagle eating road kill as well). I was doing intervals so there was some lactic acid and oxygen debt involved but during one of my recovery periods had a thought about the VXX/VIX trades. Income without capping the upside if set up correctly since these trades are generally so directional.
I will set up some trades next volatility spike but here is the idea. I can’t take full credit, I saw something similar on a webinar once.
SVXY go synthetic long, UVXY/VXX synthetic short or buy XIV stock if you want to play it from that side.
SVXY example. Buy the ATM leaps and sell the ATM put leaps. Buy a put 10 points or so OTM for disaster protection. Then instead of selling a weekly call against the long call, sell a credit spread. You will still bring in a little credit but then you are net long calls about 2:1 ratio so will not cap your upside. The short call is covered by the LEAP so effectively you have free calls with no out of pocket expense except the cost of the disaster put.
You could also reverse it on the downside. Buy a put debit spread or just add another few long puts to your short, then would have a ratio back spread and good gains to the downside.
I think it would solve the problem of a runaway stock but still bring in a credit which is something 99% of the people here like to do. You would still be able to sleep at night when 8/24/15 hits again and the VIX spikes to 100 and SVXY drops to 25. Loss capped to 10 points or wherever you set your short put.
Thoughts, suggestions? Anyone want to set up the opposite on UVXY next vol spike and we will see which one does better? I may do both for a supercharger effect. You could also use all leaps then have a set and forget trade like @ramie77 suggests.
The SVXY experiment has worked well except the short calls cap the gains, I know @fuzzballl and @jeffcp66 are having the same issues on the UVXY diagonals. I have $500 left in time decay over 23 days, once my shorts expire I will close all the positions for a great gain and set up the above if/when we ever have a volatility spike.
#LongPutDiagonals Sold a couple $VXX calls as rolls from the puts that have been painful.
STO VXX Nov 17th 38 call for 1.35
STO VXX Dec 15th 30 call for 5.50 (sold ITM)
#VXXGame STO $SVXY Nov 17th 90 put for 1.87.
#LongPutDiagonals BTC $VXX Nov 3rd 43 put for 9.35. Sold for 6.70 on a roll.
First SPX down day in several, but VIX and VXX products not showing much interest.
#OptionsExpiration #Earnings #ContangoETFs #VXXGame #LongPutDiagonals
Forgot to post this!
— Expiring w/max profit —
HCA 82.5 #CoveredCalls
NUGT 45 call
SVXY 55 and 68 puts
VXX 50 call
— Expiring w/max loss —
GWW 180/185 #ShortCallSpreads
NFLX 210/220/230 #CallButterfly
#VXXgame BTC $SVXY Oct 20th 90 call for 18.00. Sold for 2.65 on Aug 25th. This one slipped past me, should have rolled much earlier.
BTC $VXX Oct 20th 44 put for 10.00. Sold in a #StrangleRoll for 5.86 on 9/22. Part of the #LongPutDiagonals. Not rolling these anymore… waiting for some volatility to sell any more options against the long positions.
#VXXGame #LongPutDiagonals I’m starting to close down my ITM short puts against the Long-Put-Diagonals, without rolling them. I’ve kept up with rolling but it has become a futile exercise. I will consider new positions in either short calls or puts once we get some new volatility. But for now, I am shouldering the losses rather than building on them further.
The long term long puts are in great shape and should be ripe for closing about a year from now. That’s plenty of time to make up this month’s losses in additional short sales.
BTC $VXX Oct 20th 43 put for 8.44. Sold for 4.01 on 9/22 on a previous roll (with a 46.5 call for 1.44 that just closed for .03). That’s the basic deal; won’t be posting all trades to exit, but happy to answer any questions.
#LongPutDiagonals – Here’s the latest…adjusting the front month put sales that have (or will be) capping gains.
1. Closed one third of the position using the cash brought in from front month sales. This will open up that part of the 2019 position to continue lower towards zero.
Bought to Close VXX JAN 19 2018 38.0 Puts @ 6.68
2. Rolled the other two thirds of the put positions out and down to 2019.
Rolled VXX JAN 19 2018 38.0 Puts to VXX JAN 18 2019 28.0 Puts @ .31 credit
I made this adjustment after this conversation with TDA this morning:
——————————————————-
10:24 fuzzball: Quick question…any idea when the VXX 2020 LEAPS will be coming out?
10:30 SeanF_TOS: Hello, at the latest I would anticipate them to be issued once the Jan 2018 options expire
10:30 SeanF_TOS: usually they expire the 2018 ones then list the next set the following monday
10:31 fuzzball: Makes sense. I noticed the AAPL 2020’s were already trading. I’m sure it varies from ticker to ticker.
10:34 SeanF_TOS: Yeah they could potentially list them earlier based on trading demand. Exactly there isn’t an exact science to it, we’re usually good at keeping up and putting them on the platform the same day they get listed, but if you ever see them on cboe’s website as available to quote and we don’t have them let us know and we’ll get them listed by the next business day.
10:35 fuzzball: Thanks!
10:35 SeanF_TOS: You’re welcome! Have a great day!
——————————————————–
So…as soon as the 2020’s come out I’ll be rolling the puts again out and down and probably setting up another batch of synthetic short positions above them. Those (the 2020’s) will be capped to the downside again but the much larger 2019 position will be free to run all the way down.
#OptionsExporation #VXXGame #SPXstrategy
Only expiration is a long $SPX Oct 6th 2400/2375 put spread. Bought it last week for the bargain price of .20. Other than that, closed $VXX Oct 6th 44 puts for 6.53 (avg price). These are the “covered” puts against #LongPutDiagonals. This one’s gotten rough. Will have to figure a way of #Rolling later.
Have a good weekend all! I will be on or near the beach.
#LongPutDiagonals #SyntheticShortStock – Rolling the whole position for now. On this one looking at maybe later on rolling half to 2019 ITM call spreads @ even (possibly around a 20/30 BeCS) and just regular rolling the other half.
Rolled VXX OCT 20 2017 42.0 Puts to JAN 19 2018 38.0 Puts @ .80 credit
The #LongPutDiagonals may be slightly disappointing with their performance but these sure aren’t!
Bought to Close UVXY OCT 20 2017 50.0/65.0 Bear Call Spreads @ .08 (sold for 1.20)
#LongPutDiagonals #SyntheticShortStock – Taking my medicine on this one…tired of looking at it. Spending some of the front month premium received to roll way out and down.
Rolled UVXY JAN 19 2018 20.0 Puts to JAN 18 2019 10.0 Puts @ 1.47 debit.
Weekly puts had brought in 2.87 so leaving 1.40 in credit on these which caps my gains to the downside at 8.60.
So…synthetic short at 30.00 with max gain capped at 21.40 points with UVXY below 8.60 on the downside.
21.40 max gain minus the cost of the trade of 16.30 leaving a gain of 5.10 per spread. Ok but not great. It was done in a big enough size to definitely make it worthwhile. I think @vxxkelly has the right idea on this one…set it and look at it again in a year without messing with any front month positions.
Hey…what can I say?…LOL It was an experiment that hopefully everyone that tried it makes a little with almost zero stress in the trade!
🙂 🙂
#LongPutDiagonals – Yesterday…
Rolled VXX SEP 29 2017 43.5 Puts to OCT 20 2017 42.0 Puts @ .22 credit
#VXXGame #LongPutDiagonals #Rolling #StrangleRoll
As $VXX and $UVXY continue to bleed out, I’m rolling my last ITM puts into strangles.
BTC VXX Sep 22nd 47 puts for 5.75.
Sold VXX Oct 20th 44/50 strangle for 5.86
Sold VXX Oct 20th 43/46.5 strangle for 5.45
I’ll see another next week. Managing the weeklys on this long trade has gotten messy, but it keeps me busy!
#VXXGame #LongPutDiagonals
BTC $VXX Sep 22nd 44 puts, #Rolling: Sold Oct 13th 42 puts, .24 credit
BTC $UVXY Oct 6th 27.5 puts, #Rolling: Sold Oct 27th 25.5 puts, .15 credit
Also,
BTC UVXY Dec 91 call for 1.15. Sold for 8.00 on Aug 17th.
#LongPutDiagonals – She’s tanking and I’m rolling. The next one will be to 2019 if needed.
Rolled UVXY OCT 20 2017 26.0 Puts to JAN 19 2018 20.0 Puts @ .13 credit
Also:
With these short puts providing some upside protection for a possible volatility spike (yea right… 🙂 ) I’m rolling up the 2019 disaster calls for a credit. Slightly increases max loss if UVXY spikes to 60 and stays there until 2019 🙂
Rolled UVXY JAN 18 2019 40.0 Calls to JAN 18 2019 55.0 Calls @ 1.15 credit. This in effect lowers the cost of the initial trade entry.
So what’s the big picture? I eventually will have to roll these front month short puts to 2019…probably around a 10 strike. They’ve brought in a total of 3.00 so far…
Synthetically short at 30 so using 10 as a target that’s 20 points of gains. Trade entry was 16.30 debit so max gain is looking like 20.00 – 16.30 + 3.00 + residual value of disaster calls when I decide to close the trade. So possibly a 10 point winner if I’m lucky. Not what I had hoped but still a position that had a low enough risk that it allowed me in at a decent size. I think Jeff is right…just buy the puts and wait with the occasional scalp of a front month…or just synthetic short with a very loose disaster call (based on account size and appetite for risk) and not even sell any front month.
Overall it’ll be a good trade. Happy with the experiment. It’s just hard to fight the never ending lack of volatility.
Final #LongPutDiagonals #SyntheticShort roll…
Rolled UVXY SEP 22 2017 29.0 Puts to OCT 20 2017 26.0 Puts @ .07 credit
#VXXGame #LongPutDiagonals Most of us have long known the folly of selling puts on $VXX and $UVXY. It can work during volatile periods but as soon as market drifts higher, these go ITM very quickly. I’m rolling my diagonal weeklys to further dated but still ITM positions. The long term positions are fine, but as @fuzzballl says, these short-term puts won’t always be easy.
Rolled VXX Sep 22nd 45.5 puts to Oct 6th 44 puts for .02 credit
Rolled UVXY Sep 22nd 29 puts to Oct 6th 27.5 puts for .15 credit.
Another #LongPutDiagonals #SyntheticShort roll of the front month sale. 2019 positions looking great…
Rolled VXX SEP 15 2017 45.0 Puts to VXX SEP 29 2017 43.5 Puts @ .25 credit
#LongPutDiagonals #IRA – Gonna go ahead and roll this now. 2019 #SyntheticShort looking good.
Rolled NUGT SEP 15 2017 40.5 Puts to SEP 29 2017 38.5 Puts @ even
#VXXGame #LongPutDiagonals
Sold $VXX Sept 22nd 44 puts for .73. Also short 47 and 45.5 puts. If rally continues tomorrow I will be looking to roll.
#LongPutDiagonals – Trying not to let the weeklies get in too much trouble. Closing a batch at breakeven and selling more a little lower. Staying in this week…
Bought to Close VXX SEP 15 2017 47.5 Puts @ 1.95 (sold for 1.95)
Sold VXX SEP 15 2017 45.0 Puts @ .36
#OptionsExpiration #Earnings #VXXGame #LongPutDiagonals
— Expiring —
RH 36 puts
UVXY 28 & 29 puts
To Bistro-ites in Florida… stay safe!
#VXXGame #LongPutDiagonals
Sold $VXX Sep 22nd 47 puts for 1.57
Sold $UVXY Sep 22nd 29 put for 1.59
BTC $SVXY Oct 20th 68 put for 3.85. Reducing exposure. Sold for 5.55 on Aug 23rd.
#LongPutDiagonals #SyntheticShortStock – Adding a position on NUGT similar to the UVXY and VXX positions.
—————
Synthetic short stock with disaster long calls (16.50 debit)
Sold NUGT JAN 18 2019 42.0 Calls
Bought NUGT JAN 18 2019 42.0 Puts
Long call for possible disasters capping potential losses:
Bought NUGT JAN 18 2019 47.0 Calls
Buying the disaster calls pretty close to help with margin requirements if she spikes with not much effect on long term gains.
—————
Weekly put sale against synthetic short stock to really boost the profits on this trade:
Sold NUGT SEP 15 2017 40.5 Puts @ .84
—————
#LongPutDiagonals Same deal as below with $VXX…
Sold VXX Sep 22nd 45.5 puts for 1.19. This is against my Jan 2019 position (long 20 puts, short 50/60 call spreads). I only sold three so I leave myself open to selling more, since my position is a 10-lot.
#LongPutDiagonals Sold $UVXY Sep 22nd 29 put for 1.85. This is against my Jan 2019 position (long 30 puts, short 30/40 call spreads). It is replacing the Sep 8th 29 puts expiring tomorrow. I only sold one so I leave myself open to selling another, since my position is a 2-lot.
#LongPutDiagonals – I like @hcgdavis ‘s rolling idea. Going pretty aggressive here since North Korea probably not going away any time soon. Took awhile but finally filled on all of them.
Rolled VXX SEP 15 2017 45.0 Puts to SEP 15 2017 47.5 Puts @ .80 credit (total credit now 1.95 on these)
Bought to open $VXX Jan 2019 20 puts for 1.80
Sold to Open VXX Jan 2019 50/60 call spreads for 2.23
Net credit: .43.
I traded 10, so profit near expiration should be about $10K.
Max risk just under 10K if VXX soars above 60 and doesn’t come back down. An extremely unlikely scenario.
I’m on portfolio margin, and due to other VXX, SVXY and UVXY position, I was actually credited margin back for this trade. How much this may strain my buying power during a big correction is up to my broker.
I don’t think I will be buying a safety call as @fuzzballl does, but I will consider it. Also will consider selling weekly puts to increase profits.
Looking at setting up #LongPutDiagonals on $VXX, following @fuzzballl‘s lead.
Effective price of VXX 16 months ago: 255.00.
Price today: 46.23
Projected price in 16 months (Jan 2019): 8.38
Buying Jan 2019 20 puts now for 1.83, they’ll be worth 12.62 at expiration.
This is the perfect opportunity, and I darned near missed it because I was watching UVXY too much. I did a study a couple years back on buying long put LEAPs right after reverse splits. It almost always works, unless a huge correction happens near expiration, which is why you would likely close a couple months early.
And if I sell some call spreads to pay for it… it’s a golden trade.
Am I missing anything?
#LongPutDiagonals – Going out 2 weeks on this one. I’ve got a stop set on this week’s that would lock in 90 percent of max profit. Wanted to get the next one on the books in case they start sucking weekend premium out of these this afternoon.
Sold VXX SEP 15 2017 45.0 Puts @ 1.15
In the split history of VXX the quickest it has ever split was a year (2 out of 4 times) so figuring a drop from 50 to 10 I’m planning on about .75 to 1.00 per week max drop.
Rolled the 75 call yesterday for 0.85 credit and today the 79 calls for 1.17 credit. Both rolled to next week.
Total profit for 2 weeks on 4 contracts long and 5 short is $1198. That works out to an 11.9% return on capital but if you base it on risk is a 56% return in 2 weeks. As long as SVXY stays in a range, this may out perform all my other techniques. I am not on a computer with TOS so cannot share the graph at the moment but next weeks max profit potential is now around $1700 around the 80 strike.
Cost basis on first batch down to 13.95 from 16.06 and on the second batch 19.97 down from 21.14.
I plan to keep rolling the strikes but if we keep pushing up may go out a few weeks and up a few $ to improve capital gains. I figure as long as I can take in 0.50 or higher credit with each roll will stay at the same strikes.
Also rolled some SVXY 70 puts this week to next for 0.86 credit and WDC 84 and 85 calls to 1-2 weeks for 0.53 credit.
Profit range on the SVXY synthetic is now 68 to about 90 or so.
Have a good long weekend. Maybe we have some volatility next week when the big traders are back from summer vacation!
#VXXgame
#LongPutDiagonals #CoveredPuts #Rolling
BTC $UVXY Sept 1st 30 puts for 1.44. Sold for 1.10 on Aug 18th.
Sold to Open Sept 8th 29 puts for 1.77.
#StrangleRoll
BTC $SVXY Sep 15th 77.5 put for 4.20. Sold for 3.70 on July 27th.
STO $SVXY Oct 20th 55/90 strangle for 4.64 (legged in)
#LongPutDiagonals #SyntheticShortStock – Adding a position on VXX similar to the UVXY position. I’ll let ’em race each other down and see what works the best.
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Synthetic short stock with disaster long calls (16.60 debit)
Sold VXX JAN 18 2019 50.0 Calls
Bought VXX JAN 18 2019 50.0 Puts
Long call for possible disasters capping potential losses:
Bought VXX JAN 18 2019 55.0 Calls
Buying the disaster calls pretty close to help with margin requirements if she spikes…
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Weekly put sale against synthetic short stock to really boost the profits on this trade:
Sold VXX SEP 1 2017 46.0 Puts @ .60
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So now what? Two extremes examined here….
VXX goes to 100 and stays there:
I lose my 16.60 debit and an additional 5 dollars to the upside capped by the disaster calls. But…selling premium at 60 cents a week until Jan 2019 brings in 43.80 points so still a net gain of 22 points for the whole ordeal. Margin requirements for now are 7 points per spread. Not a bad return even in worse case scenario.
VXX does what it usually does:
So VXX eases it’s way down to 10 again. Synthetic stock makes 40 points and weekly premium sales at just a measly 60 cents brings in another 44 points for a gain of 84 points minus the 17 debit (rounding) works out to a 67 point winner.
I expect this one to be easier to manage since the VXX drop isn’t as severe as the amount UVXY can tank. Might actually work out better in the long run due to the weekly premium sales…
#LongPutDiagonals – Impressive volatility collapse. Making an adjustment here.
Rolled UVXY SEP 1 2017 31.0 Puts to SEP 22 2017 29.0 Puts @ .96 credit
#LongPutDiagonals – Keeping the theta rolling in…
Bought to Close UVXY AUG 25 2017 29.0 Puts @ .25 (sold for 1.25)
Sold UVXY SEP 1 2017 31.0 Puts @ 1.30
#VXXGame #LongPutDiagonals #SyntheticShortStock
Bought one of @fuzzballl‘s $UVXY trades for 17.20
Bought Jan 2019 30 put for 19.16
Sold Jan 2019 30 call for 23.91
Bought Jan 2019 40 call for 21.95
I did a study a few years back on buying UVXY LEAP puts to profit on the eventual drop. It’s hard to make much because downside can’t go past zero. So assuming a few reverse splits, the max the long puts can earn is 29.99 (with UVXY trading for .01 in today’s prices). Fuzzy’s trade knocks a couple bucks off entry price than buying the put outright.
#LongPutDiagonals #SyntheticShortStock -Adding here. Could’ve moved up to 35’s but to keep things simple I’m staying with the same strikes for now. Waiting to sell any additional puts.
Synthetic short stock with disaster long calls (17.25 debit)
Sold UVXY JAN 18 2019 30.0 Calls
Bought UVXY JAN 18 2019 30.0 Puts
Long call for possible disasters capping potential losses:
Bought UVXY JAN 18 2019 40.0 Calls
Busy week away from the market again but still adding an experimental position on UVXY. Low risk high reward playing it’s long term downtrend. Reverse Whiz style.
#LongPutDiagonals #SyntheticShortStock – I’ll be adding a similar position on VXX after the split next week. I’ll let ’em race each other down and see what works the best.
BTW…TDA portfolio margin for this trade is only 2600 increasing to 4000 if UVXY doubles overnight…
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Synthetic short stock with disaster long calls (17.75 debit)
Sold UVXY JAN 18 2019 30.0 Calls
Bought UVXY JAN 18 2019 30.0 Puts
Long call for possible disasters capping potential losses:
Bought UVXY JAN 18 2019 40.0 Calls
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Weekly put sale against synthetic short stock to really boost the profits on this trade:
Sold UVXY AUG 25 2017 29.0 Puts @ 1.25
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The plan:
Sell weekly for the next 74 weeks and let the thing decay. Hopefully capture 10 dollars of the move from 30 to 10.
Once I get a little profit under it I’ll reduce the size or possibly eliminate the disaster calls so I’m only treating those as a temporary expense. Once I remove the disaster calls and get some of that debit back I don’t see how this thing can’t make any less than 100 points per spread with very little stress and risk.
Gonna classify this under a new hashtag. The infamous #LongPutDiagonals although it will probably more than likely end up being a long term short stock position after the upcoming split. For now just messing around this week to get started…about a one-tenth position size.
Sold VXX AUG 18 2017 11.0/13.o Bear Call Spreads @ 1.00
Makes money below 12 and gets me some short stock if she spikes…I’ll add the rest after the split.
Options Bistro 