#SyntheticStock – This is the last of my old positions that’s been stuck in limbo. It’s synthetic stock out to 2020 but weekly short calls have been buried DITM for weeks with no relief in site. The position needed a yuuuge move one way or the other and it hasn’t happened. It still could but I’m wasting time waiting. Doing an extreme repair trade here but also improving my cash position and allowing the weeklies to be sold again.
Closed the 400/400/390 synthetic taking an 11.15 loss
Closed the ITM short calls and rolled them….
Rolled them to a Jan 2021 ITM bull put spread for 4.85 debit.
So what now?
I can resume safely selling weekly calls against the position. The BuPS uses zero cash and just a small amount of margin but I’m also giving up any chance of huge profits (or losses!). Strictly a repair trade so as I sell weeklies and book them I plan on using that cash to gradually roll the wings of the BuPS in. At some point I hope to have it pretty narrow and be able to get out at a scratch.
Of course I still would like to see the stock go up but a drop isn’t the end of the world since it’s all defined risk.
I’ll calculate the final numbers tonight to see exactly where I stand but that’s the basic plan.
Sold REGN OCT 19 2018 415.0 Calls @ 1.65
With 5 wide strikes on the bottom end of the BuPS I should be able to move those up one strike with each successful weekly sale.
One I’ve been fighting for awhile. Started out as non ratio #SyntheticStock in 2019 that promptly got run over weeks ago. Gradually worked it back without making much headway. Added a 2020 #LongCalls #LEAPS position on the June pullback. Long story short…weeklies run over again but both core positions combined were nicely profitable.
To clean up the entire mess I booked the gains on the cores and rolled the ITM calls to Jan 2020 ITM put spreads for a nice credit. This will give me many weeks to sell against those put spreads to drastically lower the basis in case the stock is assigned then. I should be able to collect more credit than the width of the spread eventually.
This adjustment also frees up a ton of cash and really simplifies everything…
Sold to Close 2 Jan 2019 115/120/120 synthetic stock positions @ 10.71 (basis 22.49 so loss of $2356)
Sold to Close 3 Jan 2020 105 Calls @ 34.80 (basis 23.18 so gain of $3486)
Net gain on core positions of $1130. I’ll book that and not apply it to this call/put reverse roll:
Rolled Sep 7 2018 96.5 short calls to Jan 2020 145/105 Bull Put Spreads @ 1.66 credit
Original call sales brought in 1.25 so basis on the ITM put spreads is 2.91 on a 40 wide. That’s what I’ll be selling against now over the next 70 or so weeks. Using spread sales to protect against runaway upside.
Sold OLED SEP 7 2018 130.0/135.0 Bear Call Spreads @ .55
After a failed short term #fuzzy #syntheticstock in Jan 18 with a loss of $144.00 per contract I tried for redemption in April 18 with a BTO Jan 20 135 call @18.45….With my previous loss rolled in and 92 weeks to go I needed $0.22 per week to cover…After 8 short call sales including 2 debit rolls and today touching negative delta I choose to close the position for a net gain of $178 per contract. Not earth shattering but I will take it.
#SyntheticStock – Just about the last of my old synthetic stock positions. Out to 2019 needing .95 per week to scratch. As this winds down I may add to the 2020 position. Still liking the premium in this.
Bought to Close OLED JUN 22 2018 98.0 Calls @ .05 (sold for 1.15)
Sold OLED JUN 29 2018 92.5 Calls @ 1.15
Jumped back into SQ last week…6/6 BTO Jan 20 60 call at 15.79…Need 0.19 per week to cover…STO 6/15 65 call at 0.53….Today 6/15 rolled out and up to 6/22 66.5 call for 0.51 credit #syntheticstock #syntheticcoveredcall
I am holding #SyntheticStock position in $CELG. 105/105/100 for July. Last night I was assigned the 105 Puts.
I was still in the process of covering max loss by selling Calls and would have achieved this if the roof had not fallen in!
Would appreciate your thought’s on the the best way to handle this.
#SyntheticStock – BTC EWW May18’18 48.5 calls for 0.03, sold for 0.31. STO EWW May25’18 47.5 calls for 0.31.