#shortputs TastyTrade
Short puts are sold here very often. Here is a 7 minute market measure on managing at 25%/50%/21 days and expiration with doing something at 21 days being the winner. Doesn’t help with the 4 days to expiration puts on DUST though.
https://www.tastytrade.com/tt/daily_recaps/2018-09-12/episodes/short-put-management-performance-09-12-2018
#CoveredCallCampaign
Yesterday:
Sold $BABA Sep 28th 170 call for 1.55
Sold $AAPL Sep 28th 227.5 calls for 3.60
#PieTrades
Closed $MU Sep 14th 47.5 covered call for .08. Sold last week for .75. Leaving the deck clear for earnings next week.
Today:
BTC $AMAT Sep 14th 125 covered call for 2.50. Sold last week for 2.00. Ex-div tomorrow, so I’ll wait until after to sell new calls. #PieTrades
#Earnings repair
Sold $TSLA Sep 21st 300 call for 4.25
Sold $RH Sep 28th 135 call for 2.30
Weekly vs monthly options or #pietrades vs #optionladder
Not trying to sound greedy but after I converted a lot of #pietrades to #fuzzies and #optionladder, the decay is A LOT slower. Like watching paint dry but there are some advantages and disadvantages. Had a lot of time to think about trading this weekend with tropical storm and hurricane on the way.
Advantages:
higher premiums up front
less frequent adjusting
lower gamma risk, it can move around more before it hurts the overall position.
less trading=less commissions and fewer trades to monitor
easier to adjust
less intensive trading
Disadvatages:
slower premium decay, much slower my theta is half of what it usually is
less overall premium, you get more up front but 4 weeks of ATM options is a lot more premium than 1 option sale
fewer positions
in the case of diagonals or multi strike calendars, harder to adjust with monthlies. Weeklies let you simply roll up/down/out
less compounding effect, my back of the note pad answer is about 15-20% less annualized returns compared to weeklies
So which one wins? Depends on your goals. Personally I am trying to grow accounts so I will be sticking with mostly weekly and #pietrades. The compounding effects more than offset the additional work.
If you already have everything you need, then #optionladder would probably make more sense.
Some days/months trading is easy, other not so much. These last 6 weeks have been hard for me after earnings went bad and not a lot of time to trade. If it was easy everyone would do it and be good at it.
Thanks again for the ideas. I finally close a lot of these trades in 11 days and can re-deploy capital.
#CoveredCallCampaign Sold $FB Oct 5th 160 puts for 4.00.
#PieTrades Sold $MU Sep 14th 47.5 covered call for .75
#PieTrades Sold $OLED Sep 14th 125 call for 2.00.
#SyntheticCoveredCalls Closed $PYPL Sep 21st 95 calls for .11. Sold for 1.10 on Tuesday.
#pietrades and making adjustments.
I have some garbage in my accounts right now and just as I start to break even, it moves again. MU, WDC started as #pietrades, converted to #fuzzies. MU was showing a profit yesterday but 5 points down today on MU and 2 on WDC now have created more work. So anyway, here is what I have and will gradually be moving to ETFs. Only problem is some of my accounts are not big enough to handle the good ETFs unless I #fuzzy them which is probably what I should be doing anyway. On a positive note I have made back 25-30% of the SVXY losses in 6 months. Probably another year to make it all back. That was a harder lesson than the /ES in Aug. of 2015 but at least I had a bigger capital base so did not totally destroy the accounts. Will be interesting to see what happens with the premiums when SVXY reverse splits. I will not trade it unhedged!!
Adjustments
MU 55/50 LEAP call rolled out to 8 DTE for 0.42 credit. CB now 10.52
WDC rolled the 15 DTE 60/65 LEAP down to same date but 60 short call for 1.01 credit. Cb now 16.77
EOG 115 LEAP call 15 DTE, no adjustment. Cb 11.20
New trades
LABU STO the 15 DTE 90 put for 1.2. You could do better now.
TQQQ batch 1 cc 65 at 8 DTE for 64.00
TQQQ batch 2 65.5 cc 8 DTE at 64.45
LNG batch 1 66.5 cc 8 DTE at 65.40
LNG batch 2 66.5 cc 8 DTE at 65.65
Added to XBI #fuzzy and now have all Jan 2019 LEAPS and 22 DTE short calls
95/98 leaps at 5.49 this is the new one
87/95 leaps at 6.43
95/95 leaps at 2.95
At least my theta decay is huge.
Need to be better about direction and timing, wil be using my tools more now instead of just placing weekly #pietrades no matter the ticker is doing.
Even with the garbage still made $582 last week but generally stagnant after the last earnings round.
It seems that a lot of my #pietrades have been converted to #fuzzy lately. Maybe I can get to 10 names, 10 contracts each making $1 or more a week, that would be a lot of cash coming in which would offset some of these dogs 🙂
Had to make a few rolls today:
Rolled $FB Sep 14th 170 puts to Oct 5th 165 puts, .10 credit.
Closed $FB Sep 14th 182.5 calls for .20
#Earnings #Rolling Rolled $RH Sep 7th 135 puts to Sep 28th 129 puts, .40 credit.
#CoveredCallCampaign Sold $BABA Sep 21st 177.5 covered call for 1.54 (what’s happening to BABA?)
#PieTrades Sold $AMAT Sep 14th 42.5 covered call for .72
#ContangoETFs Sold $DUST Nov 60 call for 1.95
#PieTrades Rolled $MU Aug 31 50 covered call to the Sep 7th 50.5, .30 credit
#CoveredCallCampaign Rolled $AAPL Aug 31st 205 covered calls to Sep 7th 207.5 calls, 2.00 debit. Clawing my way up the strikes until I get a pullback.
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.
#fuzzies
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.
#pietrades
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.
#PieTrades. Sold $OLED Aug 24th 122 call for 1.65
#CoveredCallCampaign Closed on GTC order: $FB Aug 24th 190 call for .15. Sold for 1.35.
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 #Earnings.
BTC $AMAT Aug 17th 46.5 #CoveredCall for 1.97. Sold for 3.56 last week as a roll. Leaving my stock alone for earnings report tonight.
#Earnings #Rolling Sold $TSLA Aug 24th 332.5/340 strangles for 18.60.
#CoveredCallCampaign Stopped $FB Aug 31st 180 puts for 3.40. Sold Sep 7th 172.5/187.5 #StrangleRoll for 3.07.
#ContangoETFs Stopped $GUSH Dec 32 put for 6.20. Sold for 5.05 in a strangle-roll months ago.
#StrangleRoll: Sold GUSH Dec 21/45 strangles x2 for 3.87.
Also, closed GUSH Sep 62 call for .10. Sold for 1.60.
#PieTrades BTC $OLED Aug 17th 120 call for .20. Sold for 2.00 on Friday.
BTC $MU Aug 24th 53 call for .10. Sold for .85 on Monday.
New tool. Not advertising here but works well in chop. Not going full directional like @fibwizard but I think this will help with my #pietrades by pointing out the actual pivots in real time. I just can’t make it work for me because of schedule, wish I could I know there is money to be made there. So I need something that does it for me. Alphashark calls it the tide trader or something like that. Uses a combination of volume, momentum, oscillator (can’t figure out which one but I think RSI looking at the math) and ATR so it is a Frankenstein indicator. However, it already helped me to hedge my SPX hedge as I saw the reversal. Takes some adjusting to each name. You have to figure out which ATR works best for what you are trading or you get too many or not enough signals. On /es and most stocks a setting of 2 is god but NFLX/AMZN take 10s. Default is 0.5 and just too many signals.
Special is $259 but I don’t know how long. An upper indicator, the big arrows and a lower. Increasing green wave go long. Purple dot possible reversal point. Increasing red wave short. Can change it for any time frame. Easy enough even I cannot miss the signal. Only traded with it 2 times so far but is helping recover MU and WDC positions by letting me sell options closer to the money.
Will update as I use it.
Catching up on posting from the last 7 days…
TODAY (Monday)
#CoveredCallCampaign
Sold $AAPL Aug 24th 202.5 #CoveredCalls for 7.00. This replaces the Aug 17th 202.5 calls I closed last week for 7.40, to avoid being called away on the ex-div date. I’m rolling ITM calls after earnings trade got breached.
Sold $SQ Aug 24th 76 call for 1.25, and Aug 31st 76 calls for 1.23
#SyntheticCoveredCalls
Sold $PYPL Aug 31st 90 calls for 1.10. A roll-up from Aug 24th 87.5 calls stopped last week.
#PieTrades
Sold $MU Aug 24th 53 covered call for .85. #PieTrades
LAST WEEK
#Rolling #StrangleRoll $TSLA Aug 17th 332.5 calls to Aug 17th 332.5/335 strangles for .65 credit. Will roll soon to avoid early assignment.
#Earnings Bought $YELP Aug 10th 38.5 #LongStraddles for 4.94. Sold the calls next day for 9.95. This trade usually works on YELP.
Stopped $FB Aug 24th 187.5 covered calls for 3.85. Rolled to Aug 31st 180/195 strangles for 3.83. Looks like I got stopped at the top. #CoveredCallCampaign.
#PieTrades Rolled $AMAT Aug 10th 46.5 covered call to Aug 17th 46.5 for .30 credit.
#VXXGame Closed $VXX Sep 21st 50 call for .46. Sold for 5.65 on April 17th.
#pietrades and trying to get some theta decay back, almost went negative on the core account.
New trades
TQQQ lot 1 65 cc expires this Friday for 63.88.
TQQQ lot 2 65 cc expires this week for 64.13.
SPX hedge, STO some 11 DTE 2550 puts to offset the decay loss on the long hedge. Sold for 1.1 dropping cost basis to 1.80. Should also be able sneak in another sale and then roll as calendar, back ratio, or risk twist. Still playing around with the most efficient hedge.
Sea of red in my core account (of course the most important one) but the other accounts theta is doing its job. After I clear out the WDC, MU earnings drops will be moving more toward ETFs to limit some of the single stock risk that keeps being affected by tweets. SMH will give coverage to that sector with decent premiums.
Not going full directional or advertising for them but alphashark has a new tool that picks up reversals very well. Currently it is $259, increases to 999 soon. Installed it last night. Have to adjust settings based on ATRs but seems like it works well. Seems to nail the reversal within a half bar on any time frame. Added it to some of my other indicators and will post some trades with it after I use it for a while and figure out the settings.
#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.
#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.
#shortputs #pietrades DOCU
July 9, sold July 20, 55 put for 1.95, July 19 rolled it to August 17 for 4.27, bought today for .50, will look at it again after earnings.
#Earnings
Closed $SHOP Aug 3rd 140 calls for .15. Sold for 1.40 on Monday.
Rolled $TSLA Aug 3rd 330 calls to Aug 10th 332.5 calls for .40 credit.
Closed $SQ Aug 3rd 71 calls for 1.50… sold for .78.
Rolled $AAPL Aug 3rd 200 #CoveredCalls to Aug 10th 202.5 calls for 1.85 debit.
#PieTrades
Rolled $AMAT Aug 3rd 46.5 covered call to Aug 10th 46.5 call for .12 credit.
Sold $MU Aug 10th 53 covered call for .84
Closed $OLED Aug 3rd 100 covered call for 1.50. Sold for 2.15. Earnings next week.
#CoveredCallCampaign
Sold $FB Aug 24th 187.5 covered calls for 1.35
#OptionsExpiration 8/3/18
$AAPL 177.5 puts. Sold for .75
#pietrades and #fuzzies
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.
From an income standpoint #pietrades make the most income but on a percentage basis the #fuzzies are doing better. Also better for smaller accounts.
So what does this mean, see below for the 45-22 DTE ladders for #pietrades. Small accounts will use spreads and #fuzzy, and #supercharger.
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.
https://tastytrade.com/tt/shows/market-measures/episodes/managing-earlier-varying-durations-07-17-2018
Quicker than usual for them, under 10 minutes.
I may migrate some of the #pietrades and TT work into one hybrid trading plan. #pietrade ladders started farther out but managed quicker, usually only 23 days. Will start a new experiment.
#pietrade conversion to #fuzzy
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.
This is the first time on this trip I’m still awake for the open.
Sold to close $AET Aug 3rd 190 calls for 1.00. Bought for 1.50, #PreEarnings.
BTC $MU Aug 3rd 55 call for .10. Sold for .80 last week. Looking to replace. #PieTrades
#Earnings:
Sold to Open $SQ 71 calls for .78. Order in to sell the 60 puts. Calls are covered, some with stock, some synthetically with long LEAPs.
Sold $TSLA Aug 3rd 260 puts for 2.75. Looking to sell 330 calls for 2.25 on the bounce.
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.
I may convert this and WDC when assigned to #fuzzies to free up margin for other #pietrades
In 2 separate IRA accounts, small size
TQQQ buy writes at 59 and 60 cc for 58.69 and 57.95 debits.
Found an adjustment to these that will help returns. For IRA and other tax deferred account will be doing more buy-writes and straight covered calls, often ATM or a few strikes ITM. Will roll if at or near the money. If deep ITM will let assign and reset the following Monday.
For margin accounts will usually start with a put sale (better margin rates than cc) and then if assigned convert. That little tweak looks like it will be worth several extra percentage points over the course of a year. Also less holding through weekends when harder to adjust trades.
As of now looks like WDC will assign this week at 75 with a cb of 73.71 so will convert to CC next week.
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.
#pietrades
#shortputs #pietrades T
Sold Aug. 17, 30 put for .52, T is at 30.40 had drop after earnings.
#optionsexpiration maybe, have 2 earnings plays that may not cooperate after the close today.
MU 55 cc rolled yesterday for 0.44 credit. CB now 55.79. 2 more rolls should put it in the green. Decidied not to #fuzzy it yet since so close to breaking even.
WDC 75 expires next week. Earnings today. Up 1.23 to 76.87 as of this writing but has been bouncing around all day.
EXPE 115 put expires tomorrow. Earnings today. Currently at 127.38 but it can move much more than that on earnings.
FAS 65 CC will let assign tomorrow. cb 63.10 so 1.9 profit on each 1 lot.
TQQQ 59 cc will let assign tomorrow. 57.80 cb so 1.2 profit on each contract.
AMAT Lot 1 cc at 47 rolled to next week for 0.38 credit. cb now 50.17. A few more weeks should be able to scratch it.
Lot 2 47 CC rolled for 0.41 credit. Cb now 46.99 so in the green after the earnings play went south.
XBI 87 Jan 2019 and next week 96.5 cost basis 9.72. Looking good at the moment but still a lot of time value in the short options so will roll next week or close for profit. In that case may re-establish new range.
Only made $708 total last week while on vacation but not bad for out having fun, the previous week was awesome so no complaints. But that confirms to me trading weeklies definitely brings in more cash if you are income trading than selling longer dated options. The weeklies also give faster compounding. However, I will be doing more 21 DTE #pietrades going forward, they need a lot less adjusting and my core account is finally big enough again to run 3 names for 3 weeks each.
On the smaller accounts (under 10k) mostly #fuzzy or variations.
Efficiency of capital round 3 or 6, lost count.
While sitting in airports and riding in the plane was thinking about how to improve #pietrades and any trade you were assigned. Here is what might work, may convert MU tomorrow to see how it works.
1. set up weekly ladders, 21 DTE seems to be ideal except going into earnings. EXPE and WDC are holding most of its time value right up until tomorrow. Less chance of getting assigned, easier to adjust farther out, more premium for strikes OTM. Also they decay quickly enough you can usually roll in 1-2 weeks if they stay OTM.
2. If put deep ITM better to take assignment and convert to covered calls.
3. However, instead of taking the stock long term like I did with GM (22 weeks), may be better to sell the stock at a loss and reset to a #fuzzy using a calendar or lower strike call. Then you are in the trade longer term, cost basis goes up, but the big advantage is you free up a ton of margin to use on more profitable trades. Then just a matter of recovering the initial loss and working the LEAPs down to cost basis of zero.
I may try this as a long term experiment with MU tomorrow, close to break even on cost basis but want to keep collecting MU premiums but would rather not hold the stock for 24 months. This is how I recovered a 17 point drop in SWKS so I know it works. My only concern is could end up with a bunch of #fuzzies when what I really want is #pietrades. However, once profitable could close out the #fuzzy and reset.
Will keep everyone posted.
#OptionsExpiration #Earnings #ContangoETFs
— Expiring w/max profit —
$COF 93.5 puts, sold yesterday for 1.40
$GUSH 48 call, sold for 1.05 last month
$ISRG 520/525 call spread, sold yesterday for 2.75 (wish I’d waited on both!)
$NFLX 475 call, sold Monday for 1.00
$SNA 145 puts, sold Wednesday
— Assignments —
$MU 54 and 54.5 #CoveredCalls #PieTrades Originally assigned via 55 puts, after a few weeks of call sales, exiting with cost basis around 51.
$SNA 170 calls, going short the stock. No weekly options on this so I think it will be quicker to get out on a dip next week.
#PieTrades BTC $AMAT July 20th 46 #CoveredCall for .80. Sold last week for .75
Sold to Open AMAT July 27th 46.5 covered call for 1.05.
#pietrades
BTC 20 JUL 40 CALL @.05…STO 6/7 @ 0.81 credit as part of a roll…
STO 27 JUL 18 39 CALL @.50 when stock was at 37.17…
CB now at 39.07 with this latest sale and recent dividend… Originally assigned at 42.50
#pietrades Not a trade, pie or anything else. This is a back door so I can post. When I call up OB, I don’t get a space to post, that’s why I haven’t posted in a while. I just get the posts, which I get in my mail. How do I overcome this so I can start posting my great trades, ;>) , again. Honk, Honk
#PieTrades On Tuesday’s down open, I closed $AMAT July 13th 46 #CoveredCall for .57. Sold for .70 last week. It had been ITM so the pullback helped, and I planned to sell the new one on the bounce.
Took a couple days for the bounce!
Today, sold AMAT July 20th 46 call for .75.
#LEAPs #SyntheticCoveredCalls
Stopped $PYPL July 20th 87 calls for 2.16 and 88 calls for 1.50.
Sold July 20th 87.5 puts for 1.10 and 1.35.
Earnings on July 25th. I believe this one will consolidate or run higher from here into earnings. If it surges I may try to squeeze in some more short calls, or just wait for an earnings strangle.
Rolling everything out 2 weeks for vacation 🙂
Some of these are still open positions.
MU 55 call rolled out 2 weeks for 1.27 credit. Cost basis 56.23. Another 2 rolls should bring profit.
WDC 8/3 75 put was sold last week for 1.29
EXPE 7/27 115 put sold last week for 1.90. Both of these are going into earnings as 21 DTE #pietrades.
AMAT lot 1 47 CC rolled out 2 weeks for 0.28. Cost basis 50.83. Will take a few more rolls on this.
FAS 64 cc rolled out 2 weeks to 65 for 0.31 credit. Cb now 63.10.
TQQQ 59 CC rolled out 2 weeks for 0.85 credit. cb now 57.80
XBI #fuzzy 87/96.5 rolled out to 8/3 for 0.30 credit. Cb decreased to 9.72. May reset in 2 weeks by rolling both up a few strikes if it keeps going.
AMAT lot 2 47 cc rolled out 2 weeks for 0.27 credit. Cb now 47.40 so should see profit in another 2 rolls.
That’s it for now. Letting theta decay pay for vacation, at least I covered the airline tickets in cash today on sales/rolls 🙂
Sorry @fuzzballl UAL was cheaper than AAL but we may make the news if we get thrown off the plane 🙂
Have a good expiration and week, check in when we get back but not even taking a computer. Need to unplug!!!!
Chris
Mmmmmm… pie rolls….
#PieTrades Bought to close $MU June 13th 54 #CoveredCalls for 1.17. Sold for 1.28 on July 2nd.
#Rolling Sold June 20th 54.5 calls for 1.53.
Bought to close $MU June 13th 53.5 #CoveredCalls for 1.44. Sold for 1.00 on Friday.
#Rolling Sold June 20th 54 calls for 1.77.
WDC 77 put expiring this friday had decayed to 0.25 so rolled it to a #pietrades 25 DTE 75 ing to put for 1.03 credit.
Trying to ladder the EXPE 115 as well but with earnings scheduled for 18 DTE it is not decaying as fast as I would like.
Limited 3 week experiment on using 21 DTE or so for #pietrades seems to be working as I expected. The extra space makes rolling easier and if they stay OTM the decay is fast enough you can usually close or roll in 1-2 weeks.
#LEAPs #SyntheticCoveredCall Sold $PYPL July 20th 87 calls for .90
#PieTrades Sold $AMAT July 13th 46 call for .70.
#CoveredCallCampaign Closed $SQ July 6th 66.5 put for 1.35 to avoid assignment. Sold for 1.43 on June 21st.
#Rolling to: SQ July 27th 68 call for 1.53.
#Earnings #Rolling BTC $RH 150 puts for 13.65. Sold July 20th 125 calls for 12.40. I’m actually looking for this one to fill the gap. It has tended to do that often after a big rise on earnings. I will add puts to this if we trade lower. I almost never get away from an earnings trade on this one easily.
#Earnings #Assignment #PieTrades Assigned $YY stock when July 6th 110 put was assigned early. Sold July 13th 97 call for 1.25. I’ll turn this into a PieTrade for recovery.
#PieTrades Sold $MU July 13th 53.5 #CoveredCalls for 1.00
Sold July 13, 50 put for .62, MU at 52
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.
I don’t think we need a new hashtag, they are still in the PIE realm. Maybe just add a 21 to it if you post it, so 21 #pietrade or #pietrade 21 or however many days until expiration.
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.
Some days better to be lucky than good. Did not have time to sell CC on MU at the open. Up 1.3 now so a better time now.
STO 11 DTE MU 55 call for 0.94. Cost basis now 57.5.
Also working some orders on FAS and TQQQ for cc but will have to post later. Too busy at work.
#shortputs #pietrades DVN
Sold July 6, 43 put for .46, stock is at 43.51, energy company
#PieTrades Sold $MU July 13th 54 #CoveredCalls for 1.28. Assigned Friday at 55.00. With this sale, cost basis 52.02 in some accounts, and 56.44 in another.
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.
#Earnings #PieTrades
Closed $STZ June 29th 220 puts for .65, .45, .20, and one left. Scaling out of my naked puts over the day. I also have some spreads, but I think we will close above 220. Watching closely to avoid assignment.
BTC $MU June 29th 52.5 covered Call for .15 to avoid assignment. Sold for .80 on Wednesday. Trying to sell a call for next week.
I’m starting to take a lot of trades off and putting fewer new ones on. I am doing this for these reasons:
1. The #SPXcampaign has not been working well in 2018. It was my core strategy starting in January 2015 and worked well through 2016. In 2017, I got crushed a little too much on the upside, and now this year’s whipsaw has been too difficult. I’m going flat in $SPX. Currently I only have a couple of OTM call spreads which I’ll be closing a bit cheaper. I will look to start fresh in the coming weeks or months after I assess the strategy.
2. I have been long a few tech stocks and selling calls. I was also rolling into strangles when calls got breached. In the last week the puts have been getting hit. So I’m keeping the stock for now but have closed most puts. I will sell covered calls if we move higher, or stop myself out if we move much lower or go into more serious correction.
3. I’m not feeling positive about the market. Of course, me typing this paragraph will likely mean today is the bottom! But the market action, the tariff fears, and other reasons for 2018 volatility do not seem to be abating. Plus record low unemployment is often what precedes a recession, and the nation’s debt and deficits are flying to new highs. I by no means am certain of a crash, and I wouldn’t be including this in my decision if it weren’t for #4.
4. My family is spending a month in Japan from late July to late August (my wife is from there, so we’ll be visiting family and touring). The NYSE opens at 10:30pm Tokyo time… I intend to keep trading lightly, but do not want to be going through volatility with lots of positions and having to stay up all night.
I hope to reset my mind, catch up on bookkeeping (both trading and household), and build out this website a bit more.
So, to summarize: I am closing out SPX, TQQQ
I’m keeping stock in AAPL, BABA, SQ, and FB, all with stops set in not too much lower than current prices. BABA is a bit underwater but the other three are nicely in profit.
I have stock also in these which are currently struggling: #PieTrades in MU and AMAT, and broken earnings trade in OLED. I’ll let these sit, sell calls, and dump them if they can’t recover soon.
The only #VXXGame trades I have are long puts in $VXX, a trade that would have worked every year for the past 9 (except maybe 2011), but is NOT working in 2018. Also long $SVXY stock and short a small amount of $VXX stock. I have way OTM long calls on UVXY and VXX, so I’m prepared to sell volatility should it get expensive.
Still short some puts in RH, YY, and GUSH, which I’ll allow to decay.
Long LEAP calls in PYPL and SQ which were cheap, so no reason to close. I will sell calls against these.
And that’s it! Let me know any questions you have about positions you were following.
#optionsexpiration #pietrades and #supercharger
Mostly adjustments and rolling. Only problem with #pietrades is when 1 goes ITM, they all go ITM. A lot of red on paper this week and will take some 2-8 weeks to break even or profit but can be done. The only one I can’t seem to repair at the moment is the SOXL #supercharger. Not because I don’t know how, don’t have enough cash in the account to do it.
SOXL #supercharger for those that have a few dollars left here is what I want to/would do if I had enough cash left. Sell the long 140 calls and roll to Sept. for about 11.20 debit. Then roll the July 145 down to 140 for 2.6 credit. Creates a calendar that can then be adjusted 1 more time and a profit at current levels at expiration if it does not move too much. New breakeven range of 132-150. I have 7 contracts and would add about $770 to the trade but recovers it for a while. Here is the graph. Since I don’t have enough cash I have to use the Aug. expiration which only gives me 1 shot at recovery so personally I am taking a $1470 loss and will roll it into something else. The account is very small, smaller now and need to preserve what’s left to be able to trade again. Likely a #fuzzy as it will be the most efficient over the long term but may ratio to prevent losses on the upside.
MU taking assignment tomorrow at 58.44 cost basis and sell CC on Monday. A rebound would be nice 🙂 but momentum has definitely shifted across the market.
FAS taking assignment at cost basis of 64.82 and will CC on Monday.
AMAT 49 CC rolled down to 47 at 22 DTE for 0.71 credit. Cost basis now 50.83 so will take some time to recover this one. Especially since had to roll out 3 weeks.
TQQQ taking assignment at 59.95 and will cc on Monday.
AMAT 49 cc rolled down to 47 22 DTE for 0.75 credit. Cost basis now 47.67 so this one is getting close to scratching.
#pietrades are awesome but when some of your names move 10+ points in a week there will be paper losses until you can work it back to even. On the triples can get about $1-2 a week in ATM premium, but be ready to roll up quickly on a whipsaw. Stocks under 100 take longer because you can only get about 0.5-1 per week on those. Stick with it though and you will eventually turn a profit. On thing OIB teaches it think like an investor (long term) but trade like a trader. Only do #pietrades on names you don’t mind holding for a while and weeks like this show you why. I will be in MU and AMAT for several more weeks.
Hope everyone else is having a good week and expiration. Will update the call sales and adjustments on Monday (hopefully will have time to trade at lunch the office has been crazy busy so may not get the chance).
SLD LABU Jul13’18 $75 PUT 0.95
#PieTrades Still short June 29th 59 put in $MU, sold last week for 1.28, now underwater. Will either take stock or roll.
In smaller accounts, today I sold June 29th 55 puts for 1.70.
#LongCalls #LEAPS – More premium collecting. Rolled some short calls down in this week and sold next week in some others.
AMAT:
Bought to Close AMAT JUN 29 2018 50.0 Calls @ .03 (sold for .49)
Sold AMAT JUL 6 2018 48.5 Calls @ .41 (80 percent size)
EWW:
Rolled 45.5 calls to next week 46 @ .10 credit
FAS:
Rolled this week 67.5 calls down to 65 @ .45 and .41 credits
LABU:
Rolled this week 112 calls down to 103 @ 1.05 credit
OLED:
Bought to Close OLED JUN 29 2018 94.0 Calls @ .05 (sold for 1.00)
Sold OLED JUL 6 2018 87.0 Calls @ 1.00
That’s a red day, first chance to look at the market.
So lots of #pietrades are now ITM but still have 3-4 days left. The only one that looks like it needs to covert to CC is MU, down 10 points in a week. Will be quicker to take assignment at cost basis of 58.44 and work it back with calls. Others are still ATM so will let more time value evaporate before doing anything with them. Will update as I adjust.
#pietrades FAS
Rolled June 22 68 Puts out and down to June 29th 67 Puts for 0.61 credit
#pietrades
ROKU rolled my Jun22 SP 46 to Jun29 and collected some much needed extra premium of 79 Cents
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.
Something my brother came up with that seems interesting. Ticker isn’t important or the length of trade or the strikes. The point of the exercise is the curve on the graph during an implosion. Adding disaster puts only adds a few pennies to weekly sales required on these 2020 positions while practically eliminating long term downside risk. This example is FAS buying LEAPS slightly ITM and disaster puts 20 percent below the current stock price.
You can play with the numbers and strikes to get a suitable position. I’m kinda liking the disaster puts idea though…
#Shortputs #pietrades
Sold ROKU June 22nd 46 Put @.50
#pietrade updates.
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.
New trades
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!
Afternoon all I set up a few trades that were filled while I was out being abused by the dentist.
#shortputs. #PIEtrades
Sold June 22nd MRVL 22 Puts @ 0.44 OOps I hope the 50dma holds. If it breaks down I will close these.
Sold June 22nd ROKU 41 Puts @ 0.84 Yay!
Sold TWTR June 22nd 44 Put @ 0.87
#pietrade rolls
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.
#supercharger SOXL 36 DTE 125/130 vertical was sold last week for 4.65. Will roll or close as the time value decays.
Looking at a BIB #supercharger but want to wait for at least a little pull back.
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 🙂
#PieTrades Closed $AMAT June 15th 51.5 call for .09. Sold last Friday for .60.
Looking to sell a June 22nd call today or tomorrow.
#supercharger Morning all. I started to put together a document of the various trades strategies being used here to help out my aging brain. Sort of a Cliff Notes of Option Bistro. I thank you in advance for your replies and taking the time from your busy days.
In the #Supercharger strategy it was mentioned that the long call should have minimal time value left. Would such an option, say 21 days to OpEx be around a 90 delta? What would be recommended methods to manage the position when things go south. And lastly is there a preferred timeframe. That looks to be 20 to 45 DTE and is obviously trader specific. Thank you again
#PieTrades Not a great week for $AMAT…. last covered call got breached so I stopped it, but didn’t get a new one on before the drop.
Sold AMAT June 15th 51.5 call for .60
Busy day here! Every single one of my #Saf-T trades is in the money for expiration, so I’m executing share calls and resets on them in multiple accounts.
LMT: I rolled into strength this morning, which means I rolled at the day’s high. This means that I didn’t collect a whole lot on the jun 8 calls ($222 of $1416) but I sold really high for next week, $2550 worth. If you recall, I’m now using LMT as a proxy to recover RTN losses (apples to apples in just one account). Last Friday the LMT-RTN was $-3858. Today it is $-3157. Gettin’ there.
My total premium sold for today was $14,894. It looks like I will collect $10,184 for a 68% retention.
I almost forgot my note-to-self about ETF divs next week and started a roll into next week. I quickly fixed that. All my SPY rolls are to Jun 13, the TQQQ rolls are to Jun 22, pretty far OTM.
Everyone have a fun and safe summer weekend! It’s been a great week for covered’s.
Oh…anyone in TWTR short calls….just keep an eye on extrinsic value, no action today necessary.
Rolled my 6/8 38 call out to 7/20 40 call for 0.81 credit, also BTC 6/8 36.5 put for 0.05 sold 6/5 for 0.40. I am working against stock assigned at 42.50. CB now down to 39.79. #pietrades
Someone finally took my GM stock for the dividend. Total loss of $321 after 22 or so weeks of rolling. Could have been worse, at one point was down almost 4k.
Rolling works but names with higher premiums work better. For those following #pietrades GM is off the list. Plenty of better opportunities out there.
Older study but good data. They keep showing 45 DTE is always the best performance for selling options OTM. Also managing at 50% seems to be key to consistent gains.
I like the #pietrades a lot and will continue to do them as my primary trade tactic but for those with bigger accounts may be better to sell 45 DTE and set up ladders. Can stay farther OTM, stay on the sweet spot of decay fro OTM options, less adjusting, and steady income. This alludes to the million dollar account with SPY from a few days ago.
https://www.tastytrade.com/tt/shows/best-practices/episodes/short-puts-increasing-duration-09-06-2016
#shortputs #pietrades ECA
sold July 20, 12 put for .65, stock at 12.14, earnings are July 19.
Read the LABU/LABD prospectus cover to cover last night. Similar math and graph as what @jeffcp66 posted yesterday. They very clearly state that if the index goes no where, the fund will lose money and they truly are for short term trading. However, unlike SVXY/XIV there is no mention that it can go to zero or be liquidated but in periods of extreme volatility it will fair worse than a non leveraged product because of the adjustments. However once the move occurs subsequent adjustments actually mute the effects a little.
For example on day 1 a 50% drop in the index would cause a 90% drop in NAV. Another 50% the next day that number would decrease to around 80%. Still a lot of pain but not as severe.
I think the way to trade these is sell premium, hedge/spread up front so risk is controlled, and any sudden moves get out quick. Don’t want to hold the ETF long term unless you have a strong directional bias.
Personally I will be adjusting these to spreads instead of naked #pietrades. That way can still collect the premiums but control worst case scenario. Don’t want another SVXY implosion in my accounts. However the spreads will be fairly wide 5-10 points so the premium collected is still excellent. For instance an 18 DTE LABU pcs at 87/82 is going for 0.6 credit with only 5k at risk. Much less cash than selling naked but also a huge reduction in risk! Perhaps a better way to trade them? 🙂
TWTR: Out the gate executed a virtual call assignment for $1889 profit on a 10×7 #UnbalancedDiagonal . That’s multiple thousands of profit (in a couple accts) since I suggested the TWTR stock replacement idea to y’all about 10 days ago. Flat TWTR right now.
#SPX Camapign closed the call side of my messed up June 15 IC. Tried to close the Put side but no takers yet.
#pietrades Sold June 8th 37 Puts @ .87 when TWTR was at 36.73
Sold FAS June 8th 68 Calls @ .60 against long stock
Sold NUGT June 15th 26 Calls @ .61 against long stock. I couldn’t get .30 for June 8th expiry but .61 for June 15th.
Dumped my SVXY LEAP 30 Calls @ .30. Time to cut the wish cord and more on.
Sold an AMZN June 8th 1605/1585 BuPS for 0.56.
Sold BAC June 8th 30 Call @ .08 against my stock. I was going to just close the position but decided to sell calls as the method. Might make a few coins before it is assigned.
And that is the whole story.
Have a great evening
Rapid fire trades (not as fast as an algo but close). 5 accounts in 15 minutes! All expiring this week so added a week.
#pietrades rolled LABU 85 puts up to 92.5 in 3 different accounts for credits of 2, 20.5, 2.25. I expect these may be challenged if we get any pull back.
AMAT rolled 51 cc to next week for 0.30 credit. Cost basis now 52.39. 2-3 more rolls should allow me to keep the original credit.
AMAT 50.5 CC will allow to expire this Friday. Cost 49.56 so a nice winner after 3-4 weeks of rolling puts and calls true #pietrade style.
GM 37.5 CC will close Friday finally. A little loss, cost basis was 37.72 but will just be happy to have the cash to use for other trades. Staying out of this one until the premiums are much better.
Back to sitting on my hands until Friday or Monday depending on what the rest of the week does.
Collected another $3163 in premium from these trades so nice week for trading a few days early, did not expect the market to stay up, will probably pay for a few of these trades later but at least have a cash cushion now 🙂
Some observations as I closed out another week. Good 3 weeks 🙂 the pull back a few weeks ago really helped.
1. Critical mass on accounts seems to be around 50k. At that point the compounding really starts to kick in and the account becomes self sustaining for positive theta, #pietrades, income trades. Trades that need to be adjusted do not seem to affect the account value as much at these levels as well. Trading 6 different accounts with different values, lowest $3500 so can really see the difference. Each contract adds a lot more cash each week. 5-10 contracts is where the income really starts to compound and pay off. Even 3 contracts is a lot better than 1 unless talking AMZN or PCLN.
2. Some names are just better than others. GM is out as soon as it closes this week. Names with perceived high volatility but don’t really move around a lot and have good premiums (0.5-1% per week minimum) do the best and are easier to adjust.
3. I try to suck all the time value out of an option but once down to 0.2 roll it for better theta decay.
4. defending trades, easier to do it before the option goes way ITM or better yet, roll it before it even gets there. You will loose a little in time value but by rolling earlier you can stay ahead and continually bring in credits. Now if it is sitting right ATM I will wait until the last minute to roll it but if there is any time left, easier to roll early.
5. Taking a slight directional bias really increases returns. Allows to sell puts closer to ATM and also time call sales better.
6. For small accounts the #supercharger seems to work the best. Better ROI than credit spreads, less adjusting, less risk overall (defined) and more cushion for pull backs as you are already deep ITM. However, have to work the spread on entry or the exit is not as profitable. For any of my accounts under 10k I will be doing a lot more of these. 10k and up probably #pietrades with some #fuzzies thrown in. Occasional #spycraft as well but to be honest the #supercharger are doing much better when we have pull backs and more consistent gains.
Sitting on my hands until Fri. Hopefully we have a pull back, at least a little one where no one gets crushed 🙂
#PieTrades Sold $SQ June 22nd 61.5 #syntheticcoveredcalls for 1.40
#CoveredCallCampaign #CoveredCalls
BTC SQ June 15th 60 call for 1.41. Sold for 1.40 on May 16th
#Rolling
Sold SQ June 29th 57.5 put for 1.50
Sold SQ July 6th 63 covered call for 1.40
#pietrades..
Assigned ERX last Friday 5/25 with CB of $41.95…
5/29 STO 6/1 38 call at $0.35 with ERX at 36.36. CB now $41.60.
5/31 rolled 6/1 38 call out to 6/8 38 call for $0.65 credit with ERX at 38.51. CB now $40.95.
Options Bistro 