WYNN

#ShortStrangles – Getting weak this afternoon so going ahead with the roll for another week. Still selling against DITM short calls. Raising basis on those. Another one I’ve been in all year just rolling around so let’s call it a #PerpetualRollingStrangles now. It’s in third place YTD trailing only TLT and NVDA in this account. Up 100 percent on margin. Overall SVXY and UVXY near the lead too as usual.

Rolled WYNN DEC 8 2017 160.0 Puts to DEC 15 2017 160.0 Puts @ 1.60 credit

EWZ

#ShortStrangles – Been working this one for awhile as a #PerpetualRollingStrangles trade and had it narrowed down to a Dec monthly short straddle. The price is at the straddle strike today so taking the opportunity to book it for decent profit and re-sell and re-center.

Bought to Close EWZ DEC 15 2017 40.0 Straddles @ 1.93 (sold for 2.72)

Sold EWZ JAN 5 2018 37.0/43.0 Strangles @ .82

TLT

#PerpetualRollingStrangles – This is almost a freebie since the sales are near my inverted strikes. Selling 50 ma and above recent highs…

Sold TLT JAN 12 2018 125.0/130.0 Strangles @ 1.35

GLD

Big change in strategy here with much lower risk. Moving #PerpetualRollingStrangles over to a Whiz #SyntheticStock out in 2020. Same amount of margin required and taking away the naked risk of the strangles. This should also be a nice hedge in a market meltdown if everyone runs for safety.

So:

Sell to Open GLD JAN 17 2020 122.0 Puts @ 7.65
Buy to Open GLD JAN 17 2020 122.0 Calls @ 12.45

Disaster puts fairly tight:

Bought to Open GLD JAN 17 2020 120.0 Puts @ 6.85

This gives a net debit of 11.65 for the Jan 2020 position. Add the 2 point max downside and get a max loss of 13.65. I did have to close my current strangles at a small loss too:

Bought to Close GLD DEC 15 2017 125.0/118.0 Inverted Strangles @ 7.30 debit (sold for 4.20)…

That’s a loss of 3.10 but at half size of the new position so I’ll add 1.55 to my basis in the new position. This will also allow me to officially book the $6100 in realized premium that the strangles have brought in over the last year or so.

With 111 weeks remaining in the trade and a max loss of 15.20 I’ll only need to sell about 13.5 cents a week to cover the max loss worse case scenario.

So:

Sold GLD DEC 8 2017 123.5 Calls @ .28

PS…yes I could’ve just bought the LEAP calls and sold against them but I like to have the possibility of booking some profit on my hedge and maybe adding to the long position at some point.

TLT

#PerpetualRollingStrangles – Filled on this call roll late yesterday…of course today would’ve been much better. Someday one side of these will expire and I can roll the other side to something less inverted. In the meantime collecting more premium.

Rolled TLT DEC 15 2017 123.0 Calls to TLT JAN 19 2018 123.0 Calls @ .20 credit

And today:

Just going out two weeks…

Rolled TLT DEC 15 2017 127.0 Puts to DEC 29 2017 127.0 Puts @ .37 credit
Rolled TLT DEC 15 2017 130.0 Puts to DEC 29 2017 130.0 Puts @ .27 credit

TLT

#PerpetualRollingStrangles – Getting this one out of the line of fire of a possible early exercise for the dividend. Still sitting on the Dec 123 calls and 127 ,130 puts.

Rolled TLT DEC 15 2017 121.0 Calls to JAN 19 2018 121.0 Calls @ .05 credit

TLT

This was a bonus #ShortStrangles I had on in addition to the #PerpetualRollingStrangles . Not wanting to let a decent winner get away (it was a bonus after all 🙂 ) I’m booking it. Looking to maybe do it again out in Jan.

Bought to Close TLT DEC 15 2017 121.0/129.0 Strangles @ .55 (sold for 1.55)