Letting LABU, TQQQ and TNA all be called out tomorrow. All profitable but I am exiting the triple game after seeing the tasty trade research.
Also staying out of earnings as much as I can. My earnings track record is not so good, lost on 8 out of 5 when I decided to stay out a few quarters ago. I will stay in them if I already have #fuzzy on.
Making enough money just doing #pietrades, #fuzzy, #hedges, and Pie trade #optionladder that I can stick with those. May be boring to some, but it is mechanical and it works. 2 accounts hit all time highs the last 2 weeks and both had SVXY in them. 2 down, 1 to go but that was the biggest loss and will take more time but on a portfolio basis I am back above my cost basis so technically all the losses have been covered 🙂
20 months to break even.
Plan not to ever do that again 🙂 🙂
And the hedges will help, see below.
At a lower strike
Sold $AMAT Jan 18 2019 35 puts @ 1.25
Weekly vs monthly options or #pietrades vs #optionladder
Not trying to sound greedy but after I converted a lot of #pietrades to #fuzzies and #optionladder, the decay is A LOT slower. Like watching paint dry but there are some advantages and disadvantages. Had a lot of time to think about trading this weekend with tropical storm and hurricane on the way.
higher premiums up front
less frequent adjusting
lower gamma risk, it can move around more before it hurts the overall position.
less trading=less commissions and fewer trades to monitor
easier to adjust
less intensive trading
slower premium decay, much slower my theta is half of what it usually is
less overall premium, you get more up front but 4 weeks of ATM options is a lot more premium than 1 option sale
in the case of diagonals or multi strike calendars, harder to adjust with monthlies. Weeklies let you simply roll up/down/out
less compounding effect, my back of the note pad answer is about 15-20% less annualized returns compared to weeklies
So which one wins? Depends on your goals. Personally I am trying to grow accounts so I will be sticking with mostly weekly and #pietrades. The compounding effects more than offset the additional work.
If you already have everything you need, then #optionladder would probably make more sense.
Some days/months trading is easy, other not so much. These last 6 weeks have been hard for me after earnings went bad and not a lot of time to trade. If it was easy everyone would do it and be good at it.
Thanks again for the ideas. I finally close a lot of these trades in 11 days and can re-deploy capital.
STO UTX 25 DTE 126 put at 1.13. Good support at 129 and 125.
#pietrades, #optionladder, and #spycraft
Spent last hour looking for trades this week after finishing taxes :). Not much in the way of #pietrades for the week, everything is extended and the decrease in vol sucked out some of the juicy premiums.
The best I can find is the BIB 62-63 CC depending on how aggressive you want to be. Other option is the put side but have to stay close to the money to get any good premium.
Also looking and ANDV (the old TSO) around the 100-103 level either CC or puts, your choice they are at parity.
GM assigned over the weekend, will sell 39 CC a few weeks out. Cost basis 39.3.
LNG already set up for Friday at the 55 CC.
With that in mind, may go out 26 DTE today 25 tomorrow and set up some ladders to give some more downside protection. Bunch of tickers there, AMGN, ANDV, CVX, MAR, MON, NKE, NSC, UNP, PSX, UAL, VLO, XBI. The 20 delta puts all have good premiums on these and don’t mind taking some shares if assigned.
#spycraft on hold. Looking back the last several weeks, the expected move on SPX/ES/SPY has been exceeded 3 out of the last 5 weeks both to the up and down side. That means the options are not priced correctly, we are not making enough for the risk. Once the pricing is back in line, or the vol. is higher to reflect the movement of SPY will restart. Also going forward will manage by buying in between the strikes if it looks like the short strike will be breached. See previous discussions for the specifics.
Hope everyone had a good weekend!
Will decide what to do with some of these trades at lunch time tomorrow.
$SVXY #ShortPuts #IRA – extending an existing #OptionLadder
Sold 1 SVXY MAR 16 2018 60.0 Put @ 1.50
Sold 1 SVXY MAR 23 2018 60.0 Put @ 2.05
$OXY #ShortPuts – Bought to close 1 OXY Jan 19 2018 47.5 Put @ 0.01. Still a month until expiration
Originally sold in May at 1.28 as a #FallingKnife trade.
This entire #OptionLadder is now gone.
Aug 18 2017 55.0 Put @ 1.35 – expired
Nov 17 2017 52.5 Put @ 1.42 – covered for 0.01
Nov 17 2017 50.0 Put @ 1.17 – covered for 0.01
Jan 19 2018 50.0 Put @ 1.51 – covered for 0.01
$NUGT #ShortPuts #OptionLadder – I’m daring NUGT to go down to get $DUST up above 30 as I have some big short PUT positions in DUST I want to expire.
Sold NUGT Dec 15 2017 24.0 Puts @ 0.40
Sold NUGT Dec 22 2017 22.5 Puts @ 0.27
Sold NUGT Dec 29 2017 23.5 Puts @ 0.63
$AKAM #ShortPuts – Bought to close AKAM Jan 19 2018 37.5 Puts @ 0.01.
Originally sold in May at 1.15 as a #FallingKnife trade.
Still have the last of the #OptionLadder at 40 for January.
$WDC #ShortPuts #FallingKnife #OptionLadder – adding a couple of positions with the stock at 78.57
Sold 1 WDC Apr 20 2018 60.0 Put @ 1.35
Sold 1 WDC Jul 20 2018 55.0 Put @ 1.60