EOG conversion to put #fuzzy
BTO the 2020 EOG 115 put at 13.00 creating the 115 calendar with short expiring 35 days.
cb now 11.2 since the initial sale brought in 1.8. Another #pietrade #earnings gone wrong/bad and managing before it get too far ITM. Will manage this from put side.
Other reason was to reduce margin requirements so I can stay in some other trades that are finally working out.
With 69 weeks left only need to cover 0.17 per week for zero cost basis.
With the drop yesterday can pretty much roll everything instead of letting call out or assign. Bad few weeks for MU and WDC down 11 and 14% respectively. They were converted to #fuzzies so a little easier to manage now but this is the only account showing a drop.
New trade STO SQ next week 70 put for 0.95.
MU 55 leap 50 call rolled a yesterday dropping cost basis to 11.26
WDC 60 leap 65 call rolled yesterday dropping cb to 18.01
EOG 115 put 36 DTE was challenged yesterday. Cost basis 113.2 if assigned.
This made me realize an easier way to manage deep ITM #pietrades is to convert it to a put leap #fuzzy. Takes out the margin requirement. If keeps dropping can manage it to a put diagonal. If reverses can either add a call side or keep rolling the put up. As you do that the margin requirement will increase but still much less than naked puts. If I had done this with MU and WDC instead of converting to the call side I would be making $ now. With any leap strategy, the short option strike is what determines the profit loss at the expiration of the short option. Going forward I think this will be my preferred strategy but only for deep ITM puts (5 points or more). Otherwise will manage as a regular weekly #pietrade.
SPX hedge rolled next week 2550 short put out to 15 DTE for 0.6 credit. Hedge only costs 1.2 now and if we head to 2550 will still make 12k. Hope I don’t need it. Next month will use back ratio or risk twist.
TQQQ batch 1 65 cc expires tomorrow rolled to next week for 0.9 credit. cb now 62.98.
TQQQ batch 2 65 cc expires tomorrow rolled to next week for 0.9 credit. Cb now 63.23
AMAT batch 1 47 cc rolled out 2 weeks for 0.33. Cb 48.91. Few more weeks to cover it.
AMAT batch 2 47 cc rolled out 2 weeks for 0.31 credit. Cb now 45.88 and if I can’t get more than 0.5 on next roll will let it assign and move to another #pietrade
#fuzzy XBI 87 and 95 leaps with rolled the 96 and 96.5 short calls down to 95 for 15 DTE for 1.1 and 10.6 credits. Cb now 7.52 and 4.04 as they were separate batches.
TOS calculates diagonals weird. They are all showing a loss on the graph but nearly 20% reduction in cost in 1 month so make sure you keep track of your cost basis. In the end that is all that really matters with any trade.
Hope everyone is having a good week. Not much to do until next week now. At least I tripled my theta decay with all the rolls.
#pietrades and #optionsexpiration
Fragmented trading day here. They were working on lines near our house and internet kept going in and out which will explain my weird WDC trade.
WDC, keeps going down. Converted to LEAP #fuzzy earlier in week. Was trying to roll to next week at 70 but because of the internet issues it somehow rolled to 66. Ok so took in a lot of cash but then the internet went down for a few hours. Of course during that time WDC reversed so was losing $ on the new trade and deltas were already flat. So rolled out to 43 DTE and up to 70. Took in 1.32 on the 66 call but had to buy them back and roll for 1.02 debit. So anyway after all that, now have the 60 LEAP 70 43 DTE call spread for cost basis of 19.03. If we rebound will buy back 2-3 of the short calls to let it run. Break below 65 will collar it to prevent further losses. As long as it stays 65-70 should break even in about 6-8 weeks.
MU 55/54 diagonal looking ok. Cb 12.43.
EOG 43 DTE 115 put cost basis at 113.20.
TQQQ batch 1 will assign tomorrow at 60 for a 2.21 gain on each contract. Reset Monday, hopefully after at least a little pull back.
TQQQ batch 2 will assign at 59 for 1.75 gain per each contract. Both these are nice 2 week pay checks! Reset Monday.
AMAT batch 1. Rolled 47 cc out a week for 0.52 credit. Cb now 49.24. A few more weeks of rolling then will reset as #pietrade again.
AMAT batch 2 rolled 47 cc out a week for 0.5 credit. This is showing a profit of 0.81 per contract but may keep rolling if it stays in range.
XBI 87/96.5 and 95/96 #fuzzy. Waiting for more decay and will roll next week. Cost basis of 8.62 on first batch and 5.1 on second.
SPX #hedge 2550 put has lost a lot already but gained 0.15 late in the day. Currently 1.75, bought for 2.9. Hope I don’t need it but will roll it at least a week before it expires and change it to a back ratio or risk twist to limit costs. That will be a more efficient hedge.
Hope everyone is having a good week and expiration. Some new trades will be added Monday.
#shortputs #closing JCI
March 12, sold a 37 put for .59, was a down day but still bad timing, rolled it April 3 and July 6, bought it today for .19, making 127. I wish I could claim a successful #pietrade but that isn’t what happened.
#pietrade conversion to #fuzzy
Sold WDC for 67.16 against cost basis of 72.34. BTO 60 leap in 2020 for 14.15 bringing new cost basis to 19.33. With 73 weeks left only need to collect 0.27 per week to cover. Already short the 70s 16 DTE.
Freed up 60k in margin for other uses.
I will be doing this a lot more with #pietrades that go way ITM. Much cheaper way to stay in the trade, less to lose, less to make up and plenty of time to do it.
Question for @fuzzballl since you do the most of these. On an annualized basis what are realistic returns for these? I personally come close to 100% but may not be managing them the best.
Early #pietrade rolls. Market giving some gifts so taking them early.
MU 55/53.5 #fuzzy rolled the 10 DTE 53.5 call up to 54 and 1 week out for 0.19 credit. Cb now 12.43. Almost recovered all the earnings losses. 2 more rolls should break even then will keep it going for profit.
WDC 10 DTE 69.5 CC rolled out a week and up to 70 for 0.11 credit. Cb now 72.34. A few more weeks to break even but may convert to a #fuzzy before then.
EOG wild 4 days ride. Down almost 5 when I sold the 43 DTE 112 outs for 1.29. Now back up and they were down to 0.60 so rolled out to new 45 DTE 115 for 0.5 credit. cb 113.2 if assigned. This was planned as a 3 week trade but made 50% in less than a week so will take it.
Sitting on my hands until Thurs. now.
#pietrade but new style. 42 DTE EOG 112 put sold for 1.3. Good earnings last night but good drop today. plan is to close it or roll it around 22 DTE or 50% profit whichever comes first.
Now going to beach to kiteboard for bday as soon as the tstorm passes!