Long weekend=extra theta.

#pietrades normally would have rolled/closed these tomorrow but there are only 4 of us in the office tomorrow (usually 14) so I doubt I would have any time to trade. Will be busy!

BTC MAR 139 puts for 1.70. After 2 rolls still made $459 in 2 weeks. Did not like the way the chart was starting to look. With gas/oil prices climbing may be less travel this summer.

This brings me to my next conclusion. It is debatable whether to trade individual tickers on #pietrades for the higher premiums than we get with ETFs vs taking advantage of some of the leveraged ETFs. Personally I am trying to move to ETFs, but the weekly premium dried up. Today might help. SMH still looked good for a week but IBB, XBI and the indexes all dropped their juicy premiums. So anyway, I have been doing this for several months now, I think it may be safer and easier to trade the leveraged products. You do not have single company risk, the premiums are high enough they are easy to roll. Yes in a big market drop they will get crushed but in looking at their histories most would be reverse split instead of liquidate like XIV/SVXY. Thoughts? Anyone see a risk I am missing?

So with that said with the recent splits looks like the list from a few days ago is still accurate but the liquidity is not all the way back on TQQQ and UPRO. I tried to #supercharger them but the market makers were not giving reasonable fills.

GM 37.5 CC expires 6.8. Was going to try to keep it for the dividend now but rolling only gives me .14 credit, not worth it. Hopefully I will be called out early for the dividend so I can use the cash somewhere more productive.

LABU STO 84 put for next week 8 DTE for 1.45
LABU rolled 85 put to next week 84 for 1.05 credit.
LABU rolled 85 put to next week 84 for 1.1 credit

AMAT rolled 51 CC to next week for 0.36 credit. Cost basis now 53.11 and will keep chipping away.
AMAT 50.5 CC rolled to next week for 0.42 credit. Cost basis now 49.93. Will allow assignment or roll again next week depending on premiums.

#spycraft closed the 15 DTE 265/262 pcs fro 0.25. sold for 0.24 so lost .1 and commissions.

#supercharger Found a good use for SOXL and BIB since they don’t have weeklies.
SOXL 22 DTE 125/130 vertical debit spread for 4.65. Should close for 5 credit close to the end. 30 + points ITM and still able to squeeze out 13-14% return for 22 days. That’s 169-182% annualized and easy to mange if it implodes.

Hope everyone has a great long weekend! Thanks to all those who served!!

Done sitting on my hands,…

Done sitting on my hands, theta did it’s thing.

MAR 139 put expires tomorrow rolled out to next week for 0.81 credit. Cb now 137.08 if assigned.
GM CC expires in 3 weeks 37.5 cb 37.72 but if ITM good bye finally. That will be 22 weeks in the trade to almost scratch it. The money will be put to better use somewhere else!
BTC MU 52.5 put for 0.04 sold for 0.63
STO LABU 85 put at 1.45. cb 83.55 if assigned 8 DTE
STO LABU 85 put at 1.2. Cb 83.8 if assigned 8 DTE
AMAT 55 put should be assigned tomorrow at 54.02 cost basis. Will flip to CC on Monday.
BTC AAL 42 put at 0.04 sold for 0.53
AMAT 52.5 put should expire tomorrow, cost basis 50.80 even if assigned. Reload monday.

#spycraft 22 DTE PCS at 265/262 was sold for 0.24. Just waiting another 1-2 weeks for some decay to erode it then will roll it.

Will only have 2 trades for Monday, then sit on my hands again until Thurs or Fri depending on what the market gives us.

Raining here but still going out to bike, have a good expiration!

#pietrade, #s

Found a few for the…

Found a few for the weekly #pietrades that expire this Friday.

BTC IBB 104.5 puts for 0.25. Sold Friday for 1.15, thanks mr market

#spycraft SPY 25 DTE 265/262 put credit spread for 0.24. Waiting on call side until the manic buying stops.

STO AAL 42.5 puts 4 DTE for 0.53 credit. Cb 41.97 as long as @fuzzballl stays off the throttles, fly slow!

STO MAR 4 DTE 139 puts at 1.1 for cb 137.9 if assigned.

GM 38 CC 2 weeks rolled out 25 dte to 37.5 for 0.32 credit. Cost basis 37.72 and if it is above 37.5 they can have it. Just want the cash out so can trade other tickers.

STO MU 4 DTE 52.5 put for 0.86 cb 51.87 if assigned.

STO 4 DTE AMAT 55 put for 0.98. Cb 54.02 if assigned.

Usually not that active on a Monday but had a ton of expirations on Friday and since IBB gave me a gift was able to double down on MAR doubling my usual cash income 🙂

Now I sit on my hands until Thurs. or Friday.


I am usually not an…

I am usually not an earnings player, but the premiums in AAPL are too juicy to pass up.

If I had not used a big chunk of margin I would buy 5 of the 165 cc and sell 5 of the 165 puts for Friday, earnings today I believe. Only have enough to sell 1 contract so:

STO the AAPL 160 put at 2.14. 4 DTE but if up after earnings will close early. If not, roll it.


Expiration and learning/growth opportunities

Sometimes it takes blowing out an account (or 2 on SVXY) to really make you focus. I have always learned more with a 2 x 4 to the back of the head than with a gentle nudge. So I went back to the drawing board, looked at all my trades that worked, what didn’t, and some alternative ways to trade and it has allowed me to concentrate on what works since Feb. 6, 2018. You would have thought I would have kept something in my head from Aug. 24, 2015 but apparently not.

So here is what I have going forward in order of how I am trading in the future.

#pietrades. This is my bread and butter, pays the bills, making some of the losses back, easy to roll and adjust and works week in and week out no matter what the market does. Occasionally get stuck with one for a while, currently GM but can usually roll them to even.

#supercharger. Works better than credit spreads for really small accounts. I have learned how to adjust from @jeffcp66 and from the options for edge book, but because of my schedule I can’t always make the adjustment in time before they go ITM or breach the short strike. By then you are already controlling losses not making money. They expire for full profit most of the time because you set then up deep ITM, if assigned on the short strike easy to exercise your long, and very easy to convert to a #fuzzy or calendar leap if they explode. Then fairly easy to work back to even or profit.

#spycraft will be rolling some of these out on the mid size accounts again but found that the ones that were farther out in time were easier to manage. So these will be 21-45 DTE in the future, mostly using spy but some qqq, iwm and maybe even dia. 3-5 points between strikes so I can manage by buying in between the strikes when needed and will not let them go to expiration, will close at 50% profit or any profit that is decent.

CC straddles or strangles if have just taken assignment on a short put and at a support area.

CC return more on a cash basis than puts so with my #pietrades will be selling puts a lot closer to the money with the hopes of getting assigned so I can immediately flip to CC.

#fuzzies are a great way to convert losing trades into break even or winners.

The higher the premiums the easier it is to roll. So I am looking at the history of how often the move is exceeding the expected move. GM is a good example, expected move exceeded almost weekly but the premiums were crap so I have been rolling it for 15 weeks now. The higher premium names even when exceeded were usually back to break even in 2 weeks. Less work + more money = more free and fun time!

Never being short unhedged volatility again!!!

Sticking with those tactics and keeping it simple and profitable until the market changes and these no longer work and have to adjust again, but I think these are tactics that can work in any market condition.

With that said, bunch of rolls today and was assigned early on a few.

ERX #supercharger 20/25 assigned for full profit. Put on 21 days ago for 4.55 debit closed at 5 credit

EXPE 104 put expiring worthless :). That account will open #spycraft on Monday.

Smallest account AAPL 145/150 ITM call debit spread. 3 contracts max gain $207 for $1293 at risk. That is a 16% ROI if AAPL anywhere above 150 or 206% annualized. I will be doing a A LOT more of these going forward on the smaller accounts now that I have seen how they work for 8 weeks and even adjusted 2 to #fuzzies.

FAS 65 CC in 3 different accounts. Rolled for 1.14, 1.1, 1.15 credits and cost basis now 57.92, 55.74, 61.33 with FAS at 64.03.

Hope everyone has a good expiration and great weekend!

SPX calls stopped

#SPXcampaign I do not see clear skies ahead, but I still gotta keep call spreads from becoming ITM. I legged out of this one, something I rarely do. But when this market moves up or down so clearly into the last hour, there’s little chance of a reversal.

Closed $SPX Apr 6th 2650/2675 call spreads for 6.60. Sold for 3.65 on Monday.

Will look to roll on the next extreme, whether it be a high or low extreme.


Not done with the Mark…

Not done with the Mark Sebastain book but a few things about adjustments, may need them. Unfortunately I have a few trades that will take me a while to unwind so won’t be able to do these for a while.

Butterflies, adjust once you are at the long strike. Basically buy some more and the ratio will boost returns.

Credit spreads, leave enough space between the strikes so you can buy in between. Usually a 3-4 contract buy on a 10 lot will flatten your deltas. If it then keeps moving you have a back ratio and any further movement will increase your profits. Other option is just back ratio the spread, say buy back 1 short for every 3-4 long contracts.

Naked options, the best way we have found is to turn them into a #fuzzy.

Full disclosure, I have not had time or the opportunity to do any of these real time, but they look like they will work in thinkback. Most of the time it flattens your loss but don’t expect a huge profit on an adjustment except in the case of a continued move if you ratio it.

Some people may get margin calls over the weekend, Sunday open could be interesting and I might take a directional trade then. Have to see.

Have a good weekend.