AMAT…BTC FEB 20 63 CALL @.05….STO 1/29 @.41…..Earnings on 2/12 selling at expected move…STO 14 FEB 66 CALL @.48….Cost basis with this sale at $56.83…#CoveredCalls #pietrade
ABBV….BTC on GTC order 20 MAR 75 PUT @.20….STO 1/31 @1.19….#shortputs
AMAT…BTC FEB 20 63 CALL @.05….STO 1/29 @.41…..Earnings on 2/12 selling at expected move…STO 14 FEB 66 CALL @.48….Cost basis with this sale at $56.83…#CoveredCalls #pietrade
ABBV….BTC on GTC order 20 MAR 75 PUT @.20….STO 1/31 @1.19….#shortputs
Last 2 weeks just adjusted several puts that went ITM from all the tweets.
Anyway, showing some profits this week so rolling and resetting.
/ES hedges closed for a $230 loss. Considering they cost $2398 they did their job. Kept me in trades and generated some cash on the first twitter drop. Reset to 106 DTE at the 2690/2700 back ratio, short 2:4 long for $3225. Hope I don’t need them but if so the lottery ticket will pay for future hedges. It was cheaper today with the VIX drop.
#pietrades XBI ladder at the 78/80/82 strikes. Rolled the 80 down to 79 and out 22 DTE for 1.19. Total credit 1.45 so cost 77.60 if assigned (include commisions). The other are 81.77 and 77.60.
JPM 106 puts closed for 0.15 or 1.19 profit per contract.
IBB STO 99 22 DTE put for 1.00.
LABU 3 lots at the 38 strikes will take assignment and convert to CC true #pietrade style. Spreads were too wide to roll since really close to ATM.
EOG 85/74.5 and 75/75 puts rolled and cost basis now 24.19. Not the best candidate for LEAPs as the long options were expensive but saved some bacon.
GILD 65/65 will roll next week. CB 1.97. 2 more rolls should be 100% returns and free trade after that. Good until 2021. This was also a recovery from when it was closer to 80 so not a bad recovery.
GILD 65/65 rolled for credit, now free trade. Have 0.39 credit per contract. The other 2 batches in this account are 2.28 and 6.08 debits.
LNG 60/60 put spread CB 9.30. Will roll in 1-2 weeks.
XBI 80/80 calls at 2.13
XBI 80/85 at 0.77 credit per contract (free trade :)). Still have to 2021 to keep selling against it or just sit on the long calls if it starts going up again.
80/83 at 6.00. Cost basis was 11.63 and started 6/21 so 51.5% return since June 21 this year. I think #fuzzy LEAP spreads are the clear winners for smaller accounts. But certain names trade better than others. You want to buy as cheap a LEAP as you can find then sell expensive weekly options against it.
LNG 65/65/61.5/59.5 down to 8.66. Converted about 3 weeks ago when a bunch of puts went deep ITM. Excellent return here as well, initial cost was 11.12 so 33% in 3 weeks.
Jeff what is your thought process on your T puts? CSP? in between divi?
EOG this week 88.5 cc rolled out to 4/5 and up to 89 for 0.20 credit. Cost basis 92.63. Should be a few more rolls to break even.
EOG has excellent premiums but hard to #pietrade. It will move $6 in a week. This one better to swing trade/time I think.
NOTE: NTAP here is accounted as full loss, even though I will probably hold stock in to next week.
NOTE ALSO: INTC here is accounted as taking stock assignment and then closing all a week later. What I actually did was close only half, and converted the other half of stock into a #PieTrade.
Today I lightened the load, selling slightly less than half of the stock for 49.00.
I’m converting the rest into a #PieTrade, so I sold to Open $INTC March 15th 50 covered calls for 1.01.
#LongPuts #LEAPS -I’m a little disappointed in this one. It could’ve been a really good one but nat gas just imploded way faster than I thought was possible and my ratio was a little high on the put sales. On the bright side, between this and BOIL the Nov spike worked out ok.
Bought to Close UNG FEB 15 2019 29.0 Puts
Sold to Close UNG JAN 17 2020 28.0 Puts
All said and done it’s a .50 winner on a 15 lot…
So obviously with the market rout all my #pietrades went ITM and to prevent a meltdown in margin I converted them all to #fuzzy. Which is great, has controlled the volatility and still have 111 weeks to manage them. But as @fuzzballl points out below, they are expensive. Cheaper than stock but my EXPE puts are now trading at 22.40 and 19.50. Not chump change.
The #pietrade idea is sound for income generation and even some capital gains long term as long as you sell the call ATM or OTM once assigned the stock. You also are typically only selling 1 side and as Karen the supertrader (now scam artist) figured out, selling the other side is what really improves long term returns and consistency. She may have been using some creative accounting but the idea is sound and has been proven by tasty trade.
So here is the tweak I have been playing with. When you set up the trade, start it as a #jadelizard but set it up ATM. For example with XBI currently at 78.02 I would sell the 10 DTE 78 puts naked (cash secure) and then sell the 78/79 call credit spread. Total credit 2.55. No upside risk, downside break even is 75.55 which is lower than where I probably would have just sold the put.
3 possible outcomes
a: below 78 assigned shares on the put at 78 but cost basis 75.55. Can sell a next week call or call credit spread if you think rebound, then uncapped upside
b: Between the strikes max profit and you may be assigned on the call but can exercise your long call if needed.
c: above 79 everything cancels out and you keep the credit minus $1.
Here’s a graph on a 10 lot.
I have been trading it on paper and it would have had better loss control on the #pietrades than straight put sales the last 2 months.
Thoughts, holes in the strategy, other ideas to tweak it or make it better? If you wanted to be more conservative could sell strangles OTM instead or straddles ATM on the short sides but then less credit. Since my premise is income, I am trying to bring in as much credit as possible on the front end.
#SyntheticCoveredCalls Sold to Open $PYPL Nov 16th 88 calls for 1.15.
#pietrade tweak I am considering.
On the initial put sale, I may pair jade lizard with them. Bring in a little extra income, if it does not hit the short strike keep the additional income.
Then if assigned on the put, instead of selling straight CC may sell a call credit spread. Then if called out you may also get a runner on the long calls. Or if nothing else will give you the ability to ratio it if moving around a lot.
As I experiment with this will post results. In looking at more recent trades it certainly would have helped.
Currently #pietrades yield about 30-40 percent annualized on cash accounts, 40-50% on margin. Trying to bump that up a little and at the same time reduce risk.
Had a come to Jesus moment at about 2 in the morning. I realized I needed to consider dumping a lot of positions. My account size has not budged much in the last couple months… money I’ve made in options has been sucked away by too many crappy stock positions. Other than AAPL and SQ, stock has not been good to me, all #PieTrades I have tried, rather Earnings repair or from scratch, have been huge dogs.
So I just dumped almost all stock positions.
Winners: $AAPL, $SQ
Losers: $FB, $BABA, $OLED, $MU, $OLED, $YY, $AMAT
Fortunately, other than $FB, the losers were all only 100 shares. AAPL and SQ were both 200. My FB losses were minimal since I have sold covered calls for a year on 100 shares, getting that lot down to 105.00 cost average. I then had more shares added in August earnings dump.
Now I can focus on strategies that I have more control over, rather than the whims of stock prices.
I’m still in options positions in $BOIL, $GUSH, $DUST. Also long calls in $PYPL (Jan 100’s, not doing well). Sticking with pre-earnings trades in $CAT, $JPM, and $MSFT. Long stock in $PVTL, since its so cheap. And a few #VXXGame short calls, and my long running long puts, the $VXX Jan 20 puts, which have lost so much potential in this volatile year.
Dumped underwater short puts in $RH. That symbol has simply killed me, I must quit it!
Also, closed $SPX Oct 12th 2825/2850/2960/2985 condor for breakeven at 4.15.
I’m looking to exit the #SuperChargers since short strikes have been breached, in $AMZN and $REGN.
Margin reduction trade, did not have to do this but was using up a ton of buying power.
With 120 weeks left to trade only need 0.124 per week for zero cost basis. I will still manage these as 43-22 DTE PIE ladders, just hedged.
Also rolled Lot 2 LNG 66 cc out 14 DTE for 0.63 credit. Cost basis 63.6 now.
That’s all for me until next Thurs. unless someone points out a really good trade before then.
STO FAS Oct12’18 65 PUT 0.47
Haven’t traded this in nearly 2 years but it looks like it’s time to dip a toe in again. Starting small.
Sold $BOIL Jan 18 2019 45 calls @ 1.00 with the stock at 30.94. Highest strike in Jan. Will look to add if there’s a continued move up in nat gas.
9/21….Still chipping away…Rolled ERX 9/21 34 Call out to 10/26 35 Call for 0.17 credit…..CB now $35.92 after being assigned at $42.50 0n 5/29 #pietrade
Too busy at work to check in this week, some interesting trades but TRLY I will watch with amusement from the sidelines:)
After rolling and recovering earnings trades for weeks equity curve finally moving up again. The theta decay finally caught up the the drops in AMAT, WDC, MU and the rebound does not hurt but now ITM on some of the shorts so will have to move them back the other way but have a few weeks.
Rolls/new trades/ #pietrades and position update.
MU 55/50 2020 LEAP recovering. Cb 9.70. and will roll short call for 15 DTE soon.
WDC 60/58 2020 LEAP now ITM. 36 DTE on the short so will roll up when the time value erodes. CB 15.41
EOG 115 2020 LEAP Cb 9.96. 22 DTE on short side, waiting for time value to drop.
XBI Lot 1 80/97 2020 LEAP cb 19.56 and short calls 22 DTE.
LNG 50/66.5 2020 LEAP cb 19.25 22 DTE on shorts
XBI lot 2 95/98 2019 LEAP next week rolled to 22 DTE for 0.67 credit. Cost basis 4.82. Also have 87/95 at 5.68 and 95/95 at 2.2. Trying to take these to zero cost basis then roll cash into new trades.
TQQQ lot 1 65 CC cb 63.20, will let assign next week and reset
TQQQ lot 2 65.5 cc cb 63.15 and will let assign next week
LNG lot 1 cc 66 rolled 1 week for 0.49 credit. Cb 64.23
LNG lot 2 66 cc rolled a week for 0.40 credit. Cb 64.32
1 new #pietrade and may become a ladder.
EXPE 43 DTE 126 put sold for 2.95. Cb 123.05 if assigned.
Hope everyone else is having a good week and anyone in NC hope things are drying out.
#PreEarnings Taking a shot at $MU. Chips have been beaten up lately but starting to show support. MU is now bouncing off the consolidation area from early this year. Taking a slightly OTM long call. Even if earnings reaction next week is not stellar, stock will have until Oct 5th to reach the 47.00 break-even.
Bought to Open $MU Oct 5th 45 long calls for 2.02. Keep an eye out, you might get this cheaper if we drop more intraday.
Also long shares in a #PieTrade.
rolled SP 56 to SP59 both with exp Aug31 for an additional .40 credit. So far, this ticker is treating me nicely
On vacation this week but home so still doing some trading.
Let’s get the crap out of the way first. Sorry to anyone who followed AMAT. Loss on the last earnings 12 weeks ago. Almost worked it back to even but they beat last week but still punished so break even or near break even is now a loss again. I mostly had these in small accounts so am closing so I can use the money on something more effective. BTC all the 47 call options for pennies, 0.03. Sold the stock at 43.06 and 43.09. Total losses (not per contract) of $588 on lot 1 and $558 on lot 2. Not bad considering it was down over $2000 initially. Rolling helps but the reason I am closing it is this: as it dropped below $50 the premiums dried up. ATM 1 week out is only 0.4-0.5. Not enough for #pietrades. Second reason is after 14 weeks of not being able to break even, time to move on. Like GM this is off the #pietrade list for a while. If you can’t bring in more than 0.5-1% per week, not worth #pietrade.
STC the SPX 2550 calendar hedge for 0.55. So a 1 month hedge only cost 0.65. I will continue playing with these but doubt I will always have a hedge. Maybe easier to just short some /ES futures when needed.
Rest are updates, rolls, new trades.
MU LEAP 55/50 8 DTE cb at 11.26. At least MU found a base.
WDC LEAP 60/ 65 29 DTE cb at 17.78. Looks like finding new range in the 60-70 area.
EOG LEAP 115/115 29 DTE cb at 11.2.
XBI LEAP 87/95 and 95/95 rolled out to 22 DTE for 0.72 credit. cb now 6.8 and 3.32. Should be free trades soon.
LABU 8 DTE 85 put for 1.9, cb 83.10 if assigned. Good support at 85.
TQQQ lot 1 65 cc rolled to next week 65.5 cc for 0.20 credit. Cb 62.78
TQQQ lot 2 65 CC cb 63.23, new trade, small account only 1-2 contracts
TQQQ lot 3 65 cc rolled to next week 65.5 for 0.25 credit. Cb now 62.98
TQQQ lot 4 66 CC cb 65.02 new trade.
TQQQ lot 5 65 cc cb 63.90
Looks like a lot of TQQQ but each account only 1-2 contracts, I am diversified elsewhere. However I have noticed that my more concentrated accounts are doing much better. Better to be a specialist than a general practitioner like me, at least for trading. Also have noticed the more you get direction right, the better the non directional trades do better. Will keep working on being better at directional bias.
A few other changes. No more #pietrades on earnings. Last 5 out of 8 went bad and basically flattened my equity curve for the last 4 months. Would have done much better without those. If I do them will use spreads in advance. Without those 5 losing earnings trades I could have paid off my wife’s car.
Converting deep ITM #pietrades into #fuzzy is a very effective risk reduction tool. Allows you to limit margin but also keep selling premium weekly and looking at 100% returns over 6 months if I keep them going. Probably best tactic for small accounts.
I will be moving most of the #pietrades over to ETFs and leveraged products to avoid the single ticker risk. The ladder idea works well for this 45 DTE and closing/rolling after 3 weeks.
Back home at last… slept well so keeping jet lag at bay!
#CoveredCallCampaign #SyntheticCoveredCalls Since I’ve been trading lighter I mostly only have long stock and long #LEAPs positions. Looking for new entries… who’s got something?
Wednesday I was over the Pacific without enough WiFi megabytes to trade, so fortunately the market didn’t do much.
Tuesday: BTC $SQ 75 calls for 1.55. Small loss. #StrangleRoll: Sold Aug 31st 73.5/78.5 strangles for 1.95.
Tuesday: BTC SQ Aug 24th 76 call for 1.16 & Aug 31st 76 call for 1.96. Breakeven combining the two.
Today: #Rolling Sold SQ Sep 7th 79 call for 1.55; sold Sept 7th 80 call for 1.50
Today: Sold $BABA Sep 14th 195 Covered Call for 1.50
Tuesday: Rolled $AAPL Aug 24th 202.5 #CoveredCalls to Aug 31st 205 covered calls, breakeven. Still underwater on this one but managing to creep my strike up.
Today: Sold $FB Sep 14th 182.5 covered call for 1.45.
Today: Sold $AMAT Aug 31st 43 covered call for .80. This #PieTrade is a stinker… not much premium to work with.
ATVI is bouncing of the 200 day MA, usually a nice entry point. Earnings are not before November. Reason enough for me to try a pietrade with selling a put Aug31 at 71 at 1.02
LABU STO the 10 DTE 85 put for 1.9. Cb 83.1 if assigned but more likely will roll. With the pull back in the biotechs there is good support around 85 for LABU.
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.
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.
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!
MU 2020 55/55 calendar rolled out to 15 DTE and down to 53.5 for 0.71 credit. Cost basis now 12.62
WDC assigned on 7 contracts 75 puts at 73.71 cost basis. I am sure the other 3 will assign so sold 10, 8 DTE 69.5 cc at 0.93 dropping cost basis to 72.78.
I can see both of these are reversing already so will end up adjusting.
TQQQ 60 cc rolled out to next week for 0.9 credit. Cost basis now 57.79 batch 1
TQQQ 59 CC rolled to next week for 0.7 credit. Cb now 57.25 batch 2
AMAT 47 cc rolled out next week for 0.41 credit. cb now 49.76 on batch 1
AMAT 47 cc rolled out next week for 0.35 credit. Cb now 46.64 on batch 2. Will let this one call out if ITM next week and this batch repaired from earnings after 5 weeks. However, this is a small account and I think I can do better with a #fuzzy.
Seems like 5 out of my last 8 earnings trades all went bad. Maybe time to reconsider earnings trades, at least as a #pietrade. Probably better to skip that week then re-establish the week after.
Also the triple ETFs have been easier to manage. Not saying lower risk, but easier to manage. The extra premiums allow you to roll easier, move strikes ITM, OTM, or ATM and still take in good credits. The higher premiums create more opportunities.
Have officially made back 33% of the SVXY losses. 3 accounts have fully recovered but 2 accounts have a long way to go. Having to be more conservative with those accounts as well because they are small/tiny now and another loss would wipe them out so the other reason I am looking at longer duration trades.
More TT research confirming 45 DTE is ideal for selling OTM options but with a twist. Closing at 22 DTE showed the best results. They also looked at other expirations and different management times.
Quicker than usual for them, under 10 minutes.
MU sold stock for 52.61 against cost basis of 55.33 for 2.72 per share loss. Took the proceeds and bought a 55 2020 call to create a LEAP calendar. Frees up 40k in cash/margin for other trades.
Now my new cost basis adding in the purchase of the leaps at 10.60 is 13.32. Will sell weeklies against it with goal of decreasing cost to zero at some point. Have 75 weeks left (already have short 55 for next week) so that means only need about 0.17 per week to break even. Anything extra is BONUS.
I may do this more often for #pietrades that move a lot and are taking longer than normal to get back to even but I still want to stay in the ticker. MU has good premiums and want to stay in it but did not want to have 1000 shares tying up so much capital.
May do the same with WDC later in the week.
Will keep posted as to how it works out long term.
Late post, too busy yesterday and nearly everyday. Work is decreasing my trading profits. s
MU rolled the 55 cc that expires Friday out a week for 0.44 credit. Cost basis now 55.79. 2 more weeks should break even then can decide whether to keep rolling for profits or reset.
Rolled my ERX 27 JUL 39 Call out to Aug 10 40 Call for 0.65 credit…With this roll CB now down to 38.69…assigned at 42.50 back on 5/26 #pietrade
Anyone selling puts? I want to get in the pie trade biz but I need the underlying to be low-priced. My trading accounts are not so big; however, growing them to largess is a primary goal. lol.
One good, EXPE up 10.40 so the 115 puts crushed to .025 and since I don’t have any other trades lined up at the moment will let it expire.
One bad, WDC down 5.61 now. I am short the 75 puts for next week. About $300 left in time value so will let that erode a little more and roll it next week.
Everything else looks like it will expire or call out as I posted yesterday.
Biotechs down today, LABU down big so it may be a potential trade for Monday. Also looking at SMH 21 DTE #pietrade and a few others but too busy to look more than that today. Will find some over the weekend.
Have a great weekend!
Gradually catching up and easing back into trading from vacation.
Only a single roll today. More to follow tomorrow or Friday.
#pietrade MU rolled the 55 call out next week for 0.44 credit. Cost basis is now 55.79.
Tomorrow will have EXPE, WDC or not depending on earnings response.
AMAT, TQQQ, FAS, XBI, and second batch of AMAT.
Hope everyone had a good week.
@smasty160 is right, weather was awesome except for the 104° day but even that did not feel hot compared to east coast.
Here is a good one for you margin users, looks like 60% of total portfolio is ideal.
WDC 78 put expiring tomorrow rolled down to 77 next week for 0.18 credit.
Hopefully the tariff rhetoric and tweets settle down, costing me $.
First #pietrade 24
EXPE 24 DTE 115 put sold for 1.90. This is heading into earnings but will probably roll or close before then.
These work great but always looking for ways to improve on tactics. Improve returns, success rate, less adjusting because adjusting costs money or delays profit taking. I am not greedy, just trying to figure out what works the best with the least amount of work or adjustments.
So I have been experimenting with this on a limited basis. Instead of starting #pietrades with only 4-8 DTE, go out about 3 weeks. Split the distance between tasty trades recommended 45 DTE and the 1 week for classic PIE trading This does 4 things. Gets you farther OTM, collects higher premiums, but stays on the steepest part of the decay curve, and allows quicker recycling of capital. Also most will be rolled or closed before full expiration. My limited experimenting with them shows most are closed or rolled within 2 weeks of opening.
So I am looking at 3 possible this morning. EXPE, VLO, AXP. Will post once I see where market opens. Also on vacation week of 7/14-21, be out in @smasty160 country so a perfect time to start a few of these as I will not be trading that week.
As the time value erodes, would then roll each week in same name if you still like the ticker or move to new positions as the market oscillates.
Will keep posted on how they work real time and on a larger scale.
Looks like I am being assigned or assigned early on TQQQ, FAS, MU, and will sell calls on Monday. This morning’s bounce looked like it would make these a lot easier. We have comcast at work and entire east coast internet was out which made work hard with an EHR. Looks like the bounce fizzled later afternoon.
Anyway, for those with big accounts, you can take #pietrade one step further. If I had bigger accounts I would do this. The decay is great on weeklies, but weeks like this they all tend to get run over at the same time. I personally would run 3 different names in each account and since I have 5-6 accounts that would give good diversification. My ultimate goal is to sell #pietrade ladders. Start the process 21 DTE. Each week add a new trade in the same 3 names. But for example using XBI. The 7 day ATM put is going for 0.77-.99 (95-96 strike) so can’t even get a buck. But if you go out 21 DTE you can sell the 92 put for 1.03-1.10. Three more dollars OTM so less likely to be breached and if you are breached probably at a better place to take assignment because it is a much bigger pull back. The only draw back is you are in the trade 2 more weeks and tying up capital.
But if your goal is income and you have a large enough account, it would be highly effective. I have tried it on small scale and whenever I was assigned they ended up wining in 1-2 weeks because it was usually at the end of a pull back. I could only run 3 contracts on 1 name or 1-2 contracts on 3 names. So it was not bringing in my income goal but when the accounts are larger this will be my main trading tactic.
Ultimate goal is 10 contracts on 3 names in each account for 3 weeks rolling. If you can get $1.00 or better that would be $3000 a week x however many accounts you have. Nice paycheck either way 🙂 To do that probably need a 300k account if using margin or twice that in a non margin account. You would also need names around $100.
Have a great weekend, update which calls I sell on Monday. If looks like more of a rebound I may leave them uncovered for a few days.
Assigned MU at cost basis of 57.70. Still dropping PM!
BTC EOG 115 put for 0.06. Sold for 1.12.
MU will take assignement at 58.44
WDC will roll down tomorrow, ATM now ans still over 1 of time value left.
FAS and TQQQ will probably do the same tomorrow.
LABU has pulled back enough to consider reloading puts, almost 20 point drop this week.
Too busy for any other trades today, update tomorrow.
MU STO 59.5 put at 1.06 for next week.
Last trade until next week.
One more note on #pietrades. I have moved 60-80% of my portfolio to true #pietrades. 20-35% is one time opportunities and usually a #pietrade type scalp or earnings play or a #fuzzy, and 5% true speculative. I am trying to create and income replacement machine and seems to be working. Just need to avoid big losses like SVXY.
When the market gives you a gift early, take it an don’t ask questions so rolling/closing early and set up new trades.
Ok, so after #pietrades for 15 months straight here is what I have figured out works the best. Need a little bit of timing and a directional bias. Personally use the 4 hour chart as that seems to correlate well with the next week.
Higher premiums = easier to manage.
I am moving towards more ETFs as it gets rid of some of the single stock risk.
My current bull pen has contracted dramatically. Here is what I am trading and only about 3-6 on an every week basis, others are more weekly scalps.
True weeklies: AAPL, EOG, EXPE, IBB, XBI, LABU, FAS, TQQQ, TNA, UPRO, WDC, AMAT, SMH. Even with these I will try to time and do not trade every one every week.
All the others I trade are set up like #pietrades but they may only run a week or 2 depending on movement. LABU is on hold until a pull back. Up 25% in 3 weeks and I am not going to chase it but great premiums and will re-enter when we have even a little pull back. It was in the 80s 3 weeks ago, hit 112 today.
BTC LABU 96 and 92.5 puts for 0.1, 0.15 and 0.15 across 3 accounts.
EOG STO the next week 115 put for 1.1. Plan to trade this true #pietrade week to week. Has stabolized now that oil is in a range again.
WDC STO next week 78.5 put for 1.13 same as above but its range is now 78-87.5 or so.
FAS STO next week 66 p for 1.18 and will roll week to week.
STO TQQQ next week 61 p for 1.05 same.
Old trades still on
AMAT 51 CC rolled to 49 next week for 0.69 credit. Cost basis 51.54. Few more weeks and should be able to cover the earnings drop.
AMAT 50.5 cc rolled to next week 49 for 0.64 credit. Cost basis now 48.42 so will probably let is close and start over or use a different ticker.
Total income $3147 for the week so not a bad weekly pay check for a vacation week. Now go sit on my hands at the beach, actually can’t sit still that long. Will surf, SUP, kiteboard, windsurf, bike, depending on weather 🙂
Have a great week!
LABU 92.5 puts rolled to next week 93, 96 for varying credits of 1.5, 1.03, 1.00.
AMAT 50.5 CC rolled to next week for 0.5 credit. Cost basis now 49.06.
AMAT 51 CC rolled to next week for 0.46. Cost basis 52.23, this is the batch that went against us on the earnings trade. Another 4-6 weeks to scratch it.
That’s all for this week, have a good weekend. Sitting on my hands until next Thurs but on vacation and staying around here so if there are opportunities may trade before then. Vacation starts with Imagine Dragons concert on Sat. in Hershey PA!
Have a great week 🙂
Yesterday I posted a plan for SPY with ex-div tomorrow. The plan involved the assignment of all my #Saf-T SPY shares, then replacing those with short puts for tomorrow expiration….which happen to have the div already priced in, along w/ a little premium.
As it turns out I had about 1000 shares called, but most of my short calls for last night’s expiration expired for full profit.
So I sold tomorrow’s 279 puts to replace the 1000 shares that were called yesterday, at $1.65.
Unless the market goes bonkers tomorrow, this is a guaranteed assignment due to the SPY price action on ex-div day (a $1.10 drop in price is guaranteed).
I have also done the required long put coverage for #Saf-T trades, buying Jul 27 276 puts.
So, for tomorrow: 1. I collect SPY dividend on 2000 shares, $2200 (pay date is actually next friday I think). 2. I collect the put premium on 10 puts $1650. 3. I take assignment of 1000 shares @ 277.35 (adjusted). 4. I can re-commence selling weekly premium on the shares.
BTC 6/15 37 Put 0.05. STO 6/7 0.79 #pietrade
Light day, rolled most of everything early in the week.
GM assigned yesterday at 37.5 CC. Cost basis was 37.72 but will take the small loss just to get out. $321 loss but was down 4 k at one point. Won’t #pietrade this again for a while.
AMAT pulled back a little so rolled the 50.5 cc to next week for 0.65 and dropped cost basis to 48.91. Have 1 other account still working back to even with cost basis of 52.39.
Everything else expires next week so will sit on my hands and let theta decay do it’s thing.
Have a great weekend!
STO 6/15 37 put 0.79 credit #pietrade
BA: I’ve got two of these on, a #CoveredBackRatio and an #UnbalancedDiagonal . The CBR had a virtual call assignment today, closing the full position for a net $2964 profit on an 8×4 setup. The UB I put on right before the close yesterday and is up smartly today.
TWTR: Opened a new Unbalanced Diagonal: Aug 37 call x10 @ 5.25, sold Jun 15 40.5 call x8 @.92. I’m really loving these unbalanced diagonals, how you can really bring the long strike up closer to ATM, thus lower risk, and at the same time bring the short call down closer to ATM (collect more $$), but the ratio makes the trade work so well.
SPY added a few more #Saf-T contracts. I’m still waiting for Saf-T shares to get called so I can reset them. I decided I make more profit waiting for full profit and paying the assignment fees, vs front running the assignment myself and giving up a few cents in order to save the fees.
I expect a really slow day from here on. It’s a “theta day” where I just sit back and catch the pennies.
With the Vol getting so low, is it a good time to buy some Leap calls in UVXY or VXX?
The reason I like this ETF is that it is an index not tied to futures or anything else. It will not go out of business and since it is really technology that will drive profits. Also, the premiums are really fat and nice.
I also keep 50% of the account in cash in case of a black swan and would double up under the right conditions.