TLT

#PerpetualRollingStrangles – Lots going on in my TLT position…LOL Been carrying some of these short calls for a long time…(added a few recently too) Rolled DITM puts out to 2020 and way down. I’ll be selling the call side against those for awhile (cautiously!) Also synthetic short and long puts shorter term.

Bought to Close TLT FEB 16 2018 120.5 Calls @ .03 (sold for .49)
Bought to Close TLT FEB 16 2018 121.0 Calls @ .02 (sold for 2.20)

Combined all of those into one big new sale…

Sold TLT MAR 2 2018 120.0 Calls @ .44

WYNN so long old friend

#PerpetualRollingStrangles – Well…it’s with a heavy heart I bid farewell (for now) to an old friend. Been in the starting lineup for about 15 months. Just a little ‘ol 3 lot strangle that’s been rolled around and rolled around plugging away day after day. Reversed it into a bull put spread and now with the big run up I’m booking the whole thing.

Great trade on the reverse roll but not so hot on selling the calls above it yesterday. Still a nice winner…

Bought to Close WYNN FEB 16 2018 200.0/170.0 Bull Put Spreads @ 5.81 (sold for 16.70)
Bought to Close WYNN JAN 26 2018 195.0 Calls @ 5.75 (sold for 1.00)

Net gain of 6.14 on this 5 lot. The (very good) news is the total profit this ticker has generated since the beginning. Averaging a 3 lot the entire time premium received was just north of 40 points carrying about 5k margin during the run.

RIP WYNN (for now)

#pietrade

TLT

#PerpetualRollingStrangles – Using this pullback to get out of a few of my short calls that have been DITM for quite awhile. I’ve got my July #FuzzyBear to help protect to the downside now…

Bought to Close TLT FEB 16 2018 123.0 Calls @ 1.70 (sold for 2.45)

TLT

#FuzzyBear – Covering my July FuzzyBear. I added this last week shorter term to protect my #PerpetualRollingStrangles that were getting too long. After the final numbers are in it looks like 20 cents a week through July to cover max loss. But…if TLT breaks long term support this could be a bigly winner.

Sold TLT JAN 26 2018 122.5 Puts @ .30

TLT

#PerpetualRollingStrangles – I won’t go into the details but added some protection for the bond collapse everyone is talking about.

Rolled DITM puts out and down
Still sitting on short calls near ATM
Added a June #FuzzyBear for some protection since delta was getting too long

Leaving it unhedged for now. Still enough time to sell to cover max loss…

I ran a little experiment…

I ran a little experiment for about 8 months last year, did not post because I was not sure how it was going to work out but here is another easy to manage, high return tactic. I got this from options income blueprint. I do not subscribe to this particular branch of it, but easy to understand and I reverse engineered it using different names. They were using AAPL, LNG, and GILD.

It is called perpetual income engine. Very simple, take about 2-5 stocks that tend to stay in a range with good option premium. Start by selling a 1 week put either ATM or 1 strike below. It is either assigned or is not. If it is assigned immediately take delivery of the stock and then on Monday sell the ATM or 1 strike out of the money covered call. If not assigned, then sell the next week put. It is very easy to implement and does not take much time.

I used 3 tickers last year, TSO which has since become ANDV, XBI, and WDC. As I am starting to review my trades from last year for taxes, I see how effective it was. It takes a while to sort everything out but the results were impressive given the simplicity.

8 months, 3 contracts each name so only tying up about 50,000 of capital earned a 57.7% return. Annualized 86.55% return. Pretty impressive given the simplicity. Obviously I will keep this going and will start posting my trades now. They will be known as #pietrades.

I do not have all the numbers yet, but the last year appears that naked puts and strangle selling was the most effective, followed by PIE trades, and a very close third goes to #fuzzies based on return on capital. However the #fuzzies worked the best for recovery of positions that went really bad. Not surprisingly given the one-sided market credit spreads did not do as well last year.

I am always looking for the most efficient way to use capital, make money, and give me more free time. Based on these results I will probably focus on those 3 strategies most of this year and will add in the occasional #spycraft when the volatility is decent.

#perpetualrollingstrangles

TLT

#PerpetualRollingStrangles – Filled Friday but missed it. This entire position sat inverted for all of 2017 with rarely either side getting taken out. Still made 2.5 times margin required. I’ll keep it going…nice steady theta day after day with little P/L change due to the inversion. 6 contracts each for 4- 5k margin…

Rolled TLT JAN 19 2018 127.0 Puts to TLT FEB 16 2018 127.0 Puts @ .75 credit.

Everything now in Feb monthly. 121/123 calls and 127/130 puts. Showing $40 theta per day for 4500 margin with a delta of +12. How did I decide on the position size? Stress tested it through TOS Analyze tab using TLT at 87 and/or 143. Using it’s most extreme values over the last 10 years the risk was satisfactory considering the annual returns.