June 1 #CoveredBackRatio #CoveredCalls
My week is just about done. For this week I had sold $9,574 in premium, and have collected $$8,189, that’s an 86% collection. As @MamaCash says, this has been a perfect few weeks for “covered’s.”
MSFT: I had to close an #AtomicAlligator trade due to peak T+1 profit line. Netted about $1400 total. The Atomic Alligators may become extinct now due to recent trade design evolution. They were fun!
TWTR: Needed an emergency debit roll, rolled Jun8 34 to jun15 36. I had to pay .87 for $2.00 gain.
ISRG: MM’s are always difficult on this. I rolled Jun1 465 to Jun8 467.5. I was only able to pocket $60 on the Jun 1 but this “roll into strength” gives me a ton of premium for next week, $5.45, + 2.50 in add’l head room. Oops, I see the new strike is blown already, I will watch extrinsic for full position close. 11:00 am update: closed out of full position for $1215 net profit.
RHT: Rolled Jun1 165 to Jun8 167.5 for $282 net on June 1.
CRM and NVDA executed share call.
One note on #UnbalancedDiagonals vs #CoveredBackRatio I’m finding I need to load them in a risk graph side by side and view P/L performance at up-and-down price points. It’s not a given that UD’s are always better than CBR’s. The extra work to compare the two creates “edge.”
One last note on a new trade called #Saf-T trade. I have a little cash that needs a lot of protection. So I loaded a trade into the backtester that brings a return better than a CD/money market, but very safely. It’s kind of a twist on the Unbalanced Diagonal, coupled w/ a collar. SPY: Buy 1000 shares, Buy qty 9 45-DTE 40 delta puts, Sell 8 7DTE 40 delta calls. You’ll notice I’m doing 1 put short of full protection, which bumps up performance just a tad. It adds 1% to the 2 year performance. The rolling calls need to finance the puts, plus add a little extra. This would be managed like a covered call: 1. allow shares to be called, 2. debit roll, 3. credit roll.
Here’s 2 year and 6 month performance numbers (these numbers do not include div payments):
SPY 2 year: 10% return, Net $26,992 6 month: -1.1% return, Net -$3,068
QQQ 2 year: 8.2% return, Net $13,681 6 month: +1.4% return, Net $2048
TQQQ 2 year: 46.1% return, $112,000 6 month: +9.1% return, Net $29,592
I put this on in both SPY and TQQQ today. We are a few weeks away from dividends on these.