SPX hedge thru Jan expiry

#SyntheticShort #Hedge #RocketManHedge – A little hedge out through the beginning of the year…

Synthetic short stock with a protective call. 45.00 debit with max loss of 50.00:

Sold SPX JAN 19 2018 2570.0 Call @ 41.50
Bought SPX JAN 19 2018 2570.0 Put @ 48.00
Bought SPX JAN 19 2018 2575.0 Call @ 38.50

Need to collect 4.15 per week to cover the max loss so:

Sold SPX NOV 3 2017 2530.0 Put @ 5.90

This gives 40 to 50 points of downside protection for minimal (or no) cost…

October Surprise

#SyntheticShort – Just throwing this out there…

Whiz, FWIW, is really getting concerned about the market going into October. I understand he’s always trying to act like a big shot know it all guy but supposedly his connections he still has in the Navy from his Top Gun days are getting worried. He says…”something is coming” and it’s gonna be bad. Obviously he says he may be wrong but who knows.

He’s throwing around all sorts of hedge ideas but most have about 5k risk for limited protection (unless outright buying of puts). I threw this idea out there to him and waiting for a response. How’s this look for a hedge that will work all the way to zero for limited risk? It’s similar to just buying the puts but with little to nothing out of pocket up front.

How about synthetic short Nov SPX at 2500 (sell call and buy put). Then buy a protective call at 2550 in case we get a rip your face off rally. Net cost out of pocket of about a buck. This hedge should make money all the way to SPX zero with max loss capped at 2550 to the upside. What am I missing? Still risking the usual 5 grand but with unlimited protection to the downside. Sort of a reverse long call diagonal but on a much shorter time frame…

UVXY

Final #LongPutDiagonals #SyntheticShort roll…

Rolled UVXY SEP 22 2017 29.0 Puts to OCT 20 2017 26.0 Puts @ .07 credit

VXX

Another #LongPutDiagonals #SyntheticShort roll of the front month sale. 2019 positions looking great…

Rolled VXX SEP 15 2017 45.0 Puts to VXX SEP 29 2017 43.5 Puts @ .25 credit

#vxxgame

NUGT

#LongPutDiagonals #IRA – Gonna go ahead and roll this now. 2019 #SyntheticShort looking good.

Rolled NUGT SEP 15 2017 40.5 Puts to SEP 29 2017 38.5 Puts @ even

NUGT

Glad you guys reminded me of this one. I’ve been looking to set up a #SyntheticShort or a #LongPutDiagonal on this dog on the next big bounce. Unfortunately there were no 2019’s available…until now. TOS isn’t showing any good quotes on them yet though…maybe tomorrow?