I have been trying to move out of the leveraged ETFs but am stuck in a few for a while. Tastytrade did some research that shows trading options on the leveraged has much lower returns than just trading the regular ETF. Even accounting for contango/drift/ backwardization. My personal results show that as well. I know a lot of people here trade them but it may be more effective to not option trade them. As a hedge, sure they work but for options not so much. With the volatility over the last month or so, I have had trouble staying ahead of the fluctuations. The premiums are huge but the options are not priced for the movement for selling them.
With that said rolled
LABU 35 cc out 29 DTE for 1 and cost basis down to 33.80. My plan is to let call out if ITM and use it on something else.
TQQQ 60 CC rolled out to next week fr 0.98. Cb 57.52. Same as above.
LABU 35.5 cc rolled out 22 DTE and down to 35 for 0.90. Cb 33.49. Same
EXPE STO the 29 DTE 123 put for 2.05. Timing could not have been worse, market reversed 2 minute after that.
XBI #fuzzy rolled 80/80 out to 22 DTE for 0.65 credit. Cb now 0.85. Still have until 2021 to keep making $ on this one.
XBI #fuzzy 80/83 rolled down to 80/80 and 29 DTE for 0.88 credit. Cb 3.99.
LNG 65/62.5/61/60 rolled this weeks 61 and 62.5 to 61 and 62 for 22 and 29 DTE for 0.56 and 0.88 credits. Cb now 5.34
Also don’t know if any of you saw the Tastytrade episodes, market measures in the summer, search back to around page 7-12 on strangles showing that managing strangles/trades at 21 DTE beat all other management strategies, period. Even better than 50% profits. There are about 3-4 sessions on that. I have an IBB experiment going on starting 43-45 DTE and managing at 21-22 DTE. Hard to tell how it is working with the volatility but I rolled IBB yesterday (just the put side). Will re-establish the strangle depending on where we end up this week or next. I also have an ITM #jadelizard experiment going on at opening at 21 DTE. Will let you know results once I have a few cycles.
Not trying to brag but my core account just hit an all time high so I must be doing something right. That wipes out the SVXY losses on 1 account. 2 others still have a way to go but this is my largest trading account so nice to know I covered those losses in 21 months. I originally thought it would take much longer. I suspect the other 2 accounts will take another 12 months on 1 and 24 on the other. Chipping away and will hope to never make that mistake again!!!!
Trade smart, stay nimble 🙂
Assigned on various lots over the weekend on #pietrades. STO the 35, 35.5 and 36 cc for 2.8, 2.75 and still waiting on the 36 fill. Regardless brings CB to 34.80, 34.70 and under 35 for the final.36 filled for 2.70. CB 34.85.
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.
#PieTrades. Another one I’m closing with only minor loss, as I don’t want to deal with ITM naked puts or stock holdings in this market.
BTC $INTC Sep 6th 46 puts for 1.61. Sold for 1.49 on Aug 12th.
#PieTrades BTC $KHC Aug 23rd 27 puts for 1.45.
That is only a third of my position; the other third was assigned. I was set to allow all of it to be assigned, but rather not carry burden of stock. So also unloaded the stock. Since I sold the puts for 1.23 on Aug 8th, this is closing at almost breakeven.
Sold to close $KHC stock for 25.58. Cost basis 25.67.
#PieTrades Sold to Open $INTC Sept 6th 46 puts for 1.50.
Since my on-going favorite $T is not near 52-week lows, I’ve switched to $KHC and INTC for my PieTrades.
#PieTrades #dividends Bought some stock in one account at 26.70. On all accounts, started a #PieTrade:
Sold $KHC Aug 23rd 27 puts for 1.23
thanks for the idea @honkhonk81