#SyntheticStock – Looking like #Earnings on Feb 2nd so rolling there. With the help of the higher IV getting another 2 bucks of upside for a small debit. After they announce will have to see what to do then.
Rolled AAPL JAN 19 2018 165.0 Calls to FEB 2 2018 167.5 Calls @ .41 debit
Using some of my front month premium sales to pay the debit. Still have 1.86 in the bank for future rolls.
#SyntheticStock – Here’s the details on the early assignment long stock roll to synthetic trade repair…
Sold ADSK JAN 18 2019 105.0 Puts @ 13.78
Bought ADSK JAN 18 2019 105.0 Calls @ 16.01
Bought ADSK JAN 18 2019 100.0 Puts @ 11.36
This gives a net debit of 13.59 for the Jan 2019 position. Add the 5 point max downside and get a max loss possibility of 18.59. Add the loss of 9.62 from the rolled position and max risk jumps to 28.21.
Based on that, and the 56 weeks remaining in the trade I need to average about 50 cents per week in sales to cover the absolute worst case scenario. I’m currently using an equal size trade as the previous one but considering doubling the size to possibly sell more conservative weeklies and/or get back to even sooner.
So:
Sold ADSK DEC 29 2017 107.0 Calls @ .79
BTC EWZ Dec22’17 39.5 calls for 0.07, STO was 0.17.
BTC MGM Dec22’17 33.5 calls for 0.10, STO was 0.22.
BTC VRX Dec22’17 21.5 calls for 0.15, STO was 0.28.
Closed all these out early as I have to work next couple of days (and all were green but could have easily turned red before Friday) I am waiting to sell for next week.
#ShortStrangles – Assigned early on some ITM puts. To reduce margin and downside risk I’ve covered the entire position and rolled it into Jan 2019 #SyntheticStock . Stock is really weak and I doubt if covered call writing will keep up if it really implodes. This buys some time and makes for a much more relaxed (and safer) way to evenyually turn this into a winner. I’ll post the whole thing later but long story short…will only require selling about 35 cents a week to cover worse case scenario.
#SyntheticStock Roll MYL Dec15’17 39 calls to Dec29’17 39.5 calls for 0.06 credit
#Fuzzy BTC TWTR Dec15’17 22.5 calls @ 0.10, sold for 0.16 earlier in the week made the family some zaxby’s money. STO TWTR Dec22’17 23 calls for 0.27.
STO EWZ Dec22’17 39.5 calls @ 0.18
BTC MGM Dec15’17 33 calls for 0.24, these were a roll I sold for 1.02 several weeks back. STO Dec22’17 33.5 calls for 0.23.
#SyntheticStock – Another week…I’ll keep the position even though Dan over at OMM is shorting anything in site tech related that’s broken down. He could be right if these dead cat bounces roll over.
Bought to Close BIDU DEC 15 2017 240.0 Calls @ .05 (sold for 4.85)
Sold BIDU DEC 29 2017 237.5 Calls @ 1.55
EDIT…of course he’s buying TSLA calls today after the stock fired out of a daily squeeze four days ago and is up 15 percent in a week. It could very well work too but not my cup ‘a tea…
#SyntheticStock – Another week…
Bought to Close EWZ DEC 15 2017 39.5 Calls @ .06 (sold for .72)
Sold EWZ DEC 29 2017 39.5 Calls @ .33
#ShortStrangles #BullPutSpreads – Taking some risk off on the bounce to resistance. Watching to re-enter possibly as #SyntheticStock …
Bought to Close WDC JAN 19 2018 85.0/80.0 Bull Put Spreads @ 2.19 (sold for 3.75)
Bought to Close WDC DEC 29 2017 82.5 Puts @ 1.33 (sold for 1.55)
#SyntheticStock #IRA – Trying to be careful here but it’s very possible this thing could be at 300 in a week after my sale. 🙂 Dan over at OMM just put on a Jan monthly 200/220 BeCS so I’m using his short strike but bringing it in a couple weeks. This particular trade only needs 42 cents a week to insure breakeven.
Bought to Close NVDA DEC 15 2017 197.5 Calls @ .14 (sold for 1.50)
Sold NVDA JAN 5 2018 200.0 Calls @ 1.57
#SyntheticStock – Getting a tiny bounce today…selling next week’s…
Bought to Close GLD DEC 15 2017 122.0 Calls @ .03 (sold for .23)
Sold GLD DEC 22 2017 120.0 Calls @ .27
Closed down my VRX trade, that booger took off like DIS did! BTC VRX Dec29’17 16.5 calls for 5.15 sold these last week for 1.31. Sold my VRX Jan17’20 synthetic stock (+15call -15put +12put) for 8.90, I bought it on 11/07 for 2.72. Net gain of 1.53 on 10 contracts. Thanks Fuzzy!
Replaced with a #Fuzzy that Sue came up with, looks interesting. BTO TWTR Mar’18 +22call -22put +18put for 0.71, STO TWTR Dec15’17 22.5 calls for 0.17. Thanks Sue!
Looks like it was a quiet day for a lot of people here.
1. May I please call these “Fuzzy” trades? I love them and I’m doing a lot of them (#SyntheticStock Diagonals w/ protection and hedge income—From now on known as #Fuzzies. To me, the Fuzzies have two stages, stage one is recovering the net debit of the trade; Stage 2 is recovery of the spread risk. I spent time this weekend looking at and scoring candidates. The “score” is basically the number of weeks of hedge income that it takes to accomplish Stage 1. The fewer the number of weeks, the lower the score. I’m looking for Fuzzies with a score of less than 5, less than 4 even better. I have a picture in my head of having a portfolio of 10 Fuzzies, each with $10 spread risk, bringing in 10-15K a week in income. So I’m testing these aggressively.
I have a TOS scan for finding high-return covered calls and puts, and it turns out it’s a good scan for finding Fuzzy candidates with low scores. Here’s the scan http://tos.mx/vKzR27
So back to Trade #1: CELG. I happened to catch a big bullish fund order for a Jan risk reversal, so a CELG #Fuzzy was my first trade of the day: Mar 110c/-110p/+100p, Dec 15 110 c. Net debit: 1.38 with a “Score” of approx 2.38 (2.38 weeks to cover the core debit)
2. Oh…here’s a nod to @hcgdavis for the Alpha Shark indicator. Got it. Love it. So scalped a bunch of /NQ today while taking it for a test run. Ended up +$305 on small-lot scalps. Enough to pay for the indicator 🙂
3. NTES. Now this was a franken-trade. It started as one 10-lot #butterfly. As it dropped added another 10-lot butterfly. Last week added a 3rd 10-lot butterfly. Was finally able to close it all out today for a $157 loss. Believe me, I’m happy with that!
4. #Bitties Closed! SPX x 20 lot, NDX x 10 lot. Got 50% target on all of them. The SPX bitties were 7DTE, so was happy to close them asap given the gamma risk. Net profit $1150.
5. Reset 17DTE SPX #Bitties. The Dec 27 2630/2625 for .85 cr x 20
6. NTNX I’ve been holding 703 shares, took 603 off for about $950 profit. Some day they’ll be acquired so I’ll always keep a hundred on. Great stock for swing trading, so will load back up on any dip. My max size position is 3000 shares, but I never seem to get the opp to add that many on.
7. QQQ #JadeLizard closed for 50% profit, this week’s expiration
8. SPY 266/267 #BuCS closed for 90% profit. This was bought based on #UOA (unusual option activity). SPY trades massive volume in fund flow, obviously—but it’s almost all put hedges. Every once in awhile a big bullish trade hits the tape, and those are ones for my attention.
9. NUE Closed a BuCS for 50% profit, this is another one that was bought on #UOA
10. NUE Opened a #Fuzzy Apr 60/60/50 for 1.87 core debit, Dec 15 62 call short for .56, Score is 3.3. There was a lot of bullish option flow on this today….all the way up to the 70 call line.
11 NUE spec trade based on #UOA bought 100 Jan 70 calls for .16, just looking for .21 as my target
12 MU #EarningsRunUp added two more calls to the trade from last week. Looking for 30% profit on these and must close before earnings announcement.
13 AMC #UOA There was unusual activity on AMC right before the other cinema merger happened last week. Turns out AMC confirms they’ve been approached too, regarding investment options. I’m glad I sold a few puts when I saw the fund flow. Netted 50%, $370.00 on a 10-lot
14. MSFT I like to layer on a lot of different MSFT trades. I love what they’re doing with Azure. However I saw a lot of January put buying today on MSFT, so I cut a trade short (#BuCS) for 28% profit vs. the 50% I was looking for. I still have on a MSFT #Butterfly that I’m watching closely. 80/85/90 for Feb.
15. ALGN This is the last of my trades from the tech crash. I defended it resulting in half what the max loss would have been. All closed now for $1150 loss. Classic case of thinking it would come back. Could have been handled better, but could have been handled much worse. I wouldn’t mind resetting with a #bitty or #PutRatioSpread the problem is that it’s just really thin. The Market Makers are not the worst I’ve dealt with (ISRG, KORS, ULTA are worse) but it’s still a struggle.
16. TWTR Opened a #Fuzzy in a 401K. I again saw some large bullish fund flow on TWTR and it had a good score. Mar 22/22/18 core for .78, sold Dec 22.5 call for .46, score is roughly 2. Not sure how this one will work out, but I’m still developing the perfect candidate profile for the Fuzzies.
@fuzzballl I hope you are ok being the namesake on these trades. It’s cute!
#SyntheticStock #IRA – Didn’t want to do this yet but ex-dividend today and ITM so taking it out a couple weeks to be safe. Should be the last one today…
Rolled MGM DEC 15 2017 32.0 Calls to DEC 29 2017 32.0 Calls @ .22 credit
#SyntheticStock – In an #IRA so can’t double sell. Need to close then open.
Bought to Close NVDA DEC 8 2017 195.0 Calls @ .03 (sold for only .48 since it was just 2 days.)
Sold NVDA DEC 15 2017 197.5 Calls @ 1.50
#SyntheticStock #IRA – Weekly sale not quite going to expire today…
Rolled BIDU DEC 8 2017 235.0 Calls to DEC 15 2017 240.0 Calls @ .40 credit (4.85 accumulated premium on this one)
Sold EWZ Dec15’17 40.5 calls at 0.29. Wish I’d sold them on Wednesday but my crystal ball was broke.
@fuzzballl —- Imagine a room full of 10 talented beautiful women option traders debating the merits of your #syntheticstock diagonals. Some of the women like the LEAP setups, some don’t (me). My thought is if there’s a melt up move on bullish setups, I’d rather close everything (for profit) than roll short-dated positions for significant debits. If I expect a full close in 3-4 months, why do LEAPs . All of these women say “thank you” by the way for your ideas and posts.
Sue
#SyntheticStock -Been waiting for some sort of a pullback to get in this long term Whiz style (although he prefers the #LongCallDiagonals for some reason).
Sold NVDA JAN 17 2020 190.0 Puts @ 37.75
Bought NVDA JAN 17 2020 190.0 Calls @ 43.70
Adding tight disaster puts. If it implodes I’ll roll this down and re-invest the profits back into more longs.
Bought to Open NVDA JAN 17 2020 185.0 Puts @ 35.05
This gives a net debit of 41.00 for the Jan 2020 position. Add the 5 point max downside and get a max loss possibility of 46.00. Based on that, and the 110 weeks remaining in the trade I only need to average about 42 cents per week in sales to cover the absolute worst case scenario. And…NVDA has great weekly premium.
Sneaking my first sale in this week to cover the small DIS loss:
Sold NVDA DEC 8 2017 195.0 Calls @ .48
#SyntheticStock – As @1strangealien and I were discussing down below I’ve bailed on DIS for a small loss and established a new position in NVDA (one of my favorites). Decent liquidity and great premium for weekly selling against the long term position.
DIS details: (I’ll post seperately with the NVDA details)
Sold to Close Jan 2020 100 strike synthetic stock @ 6.90
Sold to Close Jan 2020 90 strike disaster puts @ 5.50
Bought to Close Jun 2018 105 calls @ 6.70
Net credit of 5.70 plus front month premium received of .40 so 6.10 total. Cost to enter the trade was 6.63 so final numbers work out to a loss of .53. I’ll roll that into my NVDA cost and have it made up this week. LOL Hate a loser but really wanted a crack at NVDA so happy to close it.
BTC EWZ Dec08’17 41 calls for 0.07, Sold last week for 0.32, waiting to sell for next week.
Rolled DIS Dec08’17 103 call to Jan05’18 104 call for 0.35 credit. Still short a Dec29’17 101 call.
Getting some stuff done early, the boss will be peering over my shoulder next 2 days.
Been a busy few days with market shenanigans for me. I was feeling a little overwhelmed keeping up with all the really great posts here, plus being an active participant at Simpler. Something needed cut…so I decided to take a little sabbatical from Simpler so I can have a tighter focus on things. Trading is not a hobby for me, it’s big responsibility, and I was getting a little too sidetracked with chat room stuff. I track unusual options activity (fund flow) via Trade Alert, and that was getting neglected too. Just putting focus back on that a little more today has already paid off.
Re trades, I usually have over 20 a day, so that’s too much to recap here, I need to find a way to give broader brush strokes with rare episodes of brilliance huh?
Good trades: The RH earnings run up was great, tested out with a very high win rate and the win rate continues (snagged 40% on long calls). Tomorrow is a PIR earnings run up trade with high historical success. The FAS #SyntheticStock diagonal was closed out for over $1400 profit.
Losers: I finally scratched off LRCX for a reset, saw a $14K loss on it, even after many adjustments. It’s my tax loss sale 🙂 I reset LRCX with a #PutRatioSpread, one of my fav setups on a stock that’s been hit hard. I have a new break even of $165. Losses on NDX/SPX #Bitties, but saved thousands in defense.
Active Trades: Got a lot of defense going on an LMT failed squeeze play. Lots of adjustments and layers added to extend range. It will be really satisfying if I can pull some green out! I’m pretty sure I can.
JPM: Opened a @fuzzballl trade on it this morning. Mar 105/105 #Synthetic with Mar 95 protective puts and a Dec 108 short call for very nice premium. The first round of short term premium covers the protective put cost. Other than that doing some #ReversionToTheMean trades on some parabolic stocks that seem to be working out well, quick profits on BePS on little retracements.
Hope everyone is doing great will catch up on posts tonight. Thanks always for the great ideas.
Sue
#SyntheticStock – Selling next week early. Order in to close this week at a penny. Very conservative on these weekly sales now. This particular trade only needs about 12 cents a week to cover max loss. Struggling so far but….synthetic short stock position on NUGT working nicely!
Sold GLD DEC 15 2017 122.0 Calls @ .23
#SyntheticStock – Rolling front month back out to 45 days and just before earnings. Could possibly get one more nice roll into earnings week…
Rolled AAPL DEC 22 2017 162.5 Calls to JAN 19 2018 165.0 Calls @ .35 debit.
Debit roll but picking up another 2.15 of upside. Front month premium received now reduced to 2.60
Bought $MYL Jan’20 40 call, sold $MYL Jan’20 40 put, bought $MYL Jan’20 35 put @$4.72 debit.
Sold Dec15’17 39 call @$0.35
#SyntheticStock – Rolling up and out for a small debit but picking up 3.70 more upside. DIS has lousy strikes for rolling…5 wide in the monthlies. This is another bigly profit blocked by front month calls. From now on I’m changing my attitude about these. Instead of going for aggressive max premium on the weekly sales I’m going to be much more conservative.
When I set these trades up it usually works out where only very small weekly sales are needed to cover any max potential loss since they are all hedged. Let’s say 15 cents is all that’s required each week. I’ll limit myself to 30 cents on the sales which would still be a double long term but would also leave plenty of upside room for these runaway trains…
Rolled DIS DEC 29 2017 100.0 Calls to JUN 15 2018 105.0 Calls @ 1.30 debit.
#SyntheticStock #IRA – Rolling for a small debit. Picking up another .45 of upside and keeping the expiry prior to next earnings…
Rolled VRX DEC 1 2017 15.0 Calls to JAN 12 2018 15.5 Calls @ .05 debit
#SyntheticStock #IRA – More selling…
Bought to Close EWZ DEC 8 2017 41.0 Calls @ .12 (sold for .55)
Sold EWZ DEC 15 2017 39.5 Calls @ .72
Promised Daddy for two weeks I’d get him shares for the $2.00 dividend tomorrow. It kept running away from me though! But Dad loves free things. Free Big Macs when the Broncos win (yeah, been awhile), free ipads from TD Ameritrade (despite that he’s too old to use them), and perceived free money that are dividends. Had to cave.
200 Shares at $320.45, Sold Dec 22 325 calls for 1.45
FAS
This is a @fuzzballl trade, kind of. #Diagonal using #syntheticstock
BTO Feb 65 Call, STO Feb 65 (net .35 cr), STO Dec 66 call 1.32 cr
BE 63.44, Max profit $2600
Will watch for opp to add some put protection in Feb
Big change in strategy here with much lower risk. Moving #PerpetualRollingStrangles over to a Whiz #SyntheticStock out in 2020. Same amount of margin required and taking away the naked risk of the strangles. This should also be a nice hedge in a market meltdown if everyone runs for safety.
So:
Sell to Open GLD JAN 17 2020 122.0 Puts @ 7.65
Buy to Open GLD JAN 17 2020 122.0 Calls @ 12.45
Disaster puts fairly tight:
Bought to Open GLD JAN 17 2020 120.0 Puts @ 6.85
This gives a net debit of 11.65 for the Jan 2020 position. Add the 2 point max downside and get a max loss of 13.65. I did have to close my current strangles at a small loss too:
Bought to Close GLD DEC 15 2017 125.0/118.0 Inverted Strangles @ 7.30 debit (sold for 4.20)…
That’s a loss of 3.10 but at half size of the new position so I’ll add 1.55 to my basis in the new position. This will also allow me to officially book the $6100 in realized premium that the strangles have brought in over the last year or so.
With 111 weeks remaining in the trade and a max loss of 15.20 I’ll only need to sell about 13.5 cents a week to cover the max loss worse case scenario.
So:
Sold GLD DEC 8 2017 123.5 Calls @ .28
PS…yes I could’ve just bought the LEAP calls and sold against them but I like to have the possibility of booking some profit on my hedge and maybe adding to the long position at some point.
#SyntheticStock – Booking the weekly and selling another batch…
Bought to Close BIDU DEC 1 2017 250.0 Calls @ .25 (sold for 1.95)
Sold BIDU DEC 8 2017 245.0 Calls @ 2.91
#SyntheticStock #IRA – Rolling front month up and out a little…picking up another 1.10 of upside.
Rolled EWZ NOV 24 2017 40.0 Calls to DEC 8 2017 41.0 Calls @ .10 credit.
#SyntheticStock -Been waiting for some sort of a pullback to get in this long term Whiz style (although he prefers the #LongCallDiagonals for some reason).
Sold BIDU JAN 17 2020 250.0 Puts @ 42.47
Bought BIDU JAN 17 2020 250.0 Calls @ 49.41
Adding a tight disaster put. If it implodes I’ll roll this down and re-invest the profits back into more longs.
Bought BIDU JAN 17 2020 240.0 Puts @ 37.17
This gives a net debit of 44.11 for the Jan 2020 position. Add the 10 point max downside and get a max loss possibility of 54.11. Based on that, and the 112 weeks remaining in the trade I only need to average about 48 cents per week in sales to cover the absolute worst case scenario. And…BIDU has great weekly premium.
So:
Sold BIDU DEC 1 2017 250.0 Calls @ 1.95
#SyntheticStock – It’s either going to roll over and die again here at 12.00 or breakout for a run higher. Either way I’m raising my front month position a little. Really doesn’t matter since I’m in the trade for free as long as it’s above 10…with 61 more weeks to run.
Rolled HIMX NOV 17 2017 10.0 Calls to DEC 29 2017 10.5 Calls @ .22 debit
Originally sold the 10 calls @ .50 so giving a little back but still increasing upside by .78 on a fairly sizable position (hey, go big when it’s free!).
#SyntheticStock – Would’ve got a better fill yesterday but got greedy. Sure didn’t expect this move today but I’ll take it. Rolling up the synthetic position. Leaving the disaster put alone until we see some sort of a top.
Rolled AMZN JUN 21 2019 1000.0 Strike Synthetic Stock to JUN 21 2019 1050.0 Strike @ 48.25 credit
#SyntheticStock – Using the pullback to get a little better fill on a roll up of the front month position.
Rolled AMZN DEC 15 2017 1000.0 Call to JAN 19 2018 1010.0 Call @ 1.70 debit
Picking up another 8.30 of upside with plenty of downside cushion…poor man’s trailing stop. Reduces front month premium received to 47.45. Trade runs all the way to June 2019 so 19 more roll ups to go. It’s gotta level off at some point (doesn’t it?)…
Possible #SyntheticStock or #LongCallDiagonals out to 2020.
Not a big fan of their products but seems pretty low risk at synthetic 12 with disaster put at 10. After this big drop it might grind around for awhile allowing pretty aggressive weekly sales before it heads back up (or down…LOL)
#SyntheticStock – So so earnings so looking weak. I may regret this but very aggressive sale slightly in the money…
Bought to Close HIMX NOV 10 2017 10.5 Calls @ .05 (sold for .35)
Sold HIMX NOV 17 2017 10.0 Calls @ .50
#SyntheticStock – Weak stock so staying aggressive with the front month sales…
Bought to Close EWZ NOV 10 2017 40.0 Calls @ .02 (sold for .46)
Sold EWZ NOV 24 2017 40.0 Calls @ .45
#SyntheticStock – The mouse is running…rolling front month up a strike for slight credit picking up another 1.05 of upside.
Rolled DIS NOV 10 2017 99.0 Calls to DEC 29 2017 100.0 Calls @ .05 credit
#Earnings – Just for fun planning on hardly any movement. This is obviously separate from my #SyntheticStock position…
Sold DIS 102/103/104 iron flies @ .90 risking .10 to make .90 with a 3.15 expected move.
#SyntheticStock #LongCallDiagonals – Rolling up and out to the monthly picking up another .61 of upside.
Rolled MGM NOV 10 2017 31.5 Calls to MGM DEC 15 2017 32.0 Calls @ .11 credit
#LongCallDiagonals #SyntheticStock #IRA -Been waiting for this thing to show some signs of life to get in (again) with a long term Whiz style. 2020’s out so going in with a full position.
Bought to Open VRX JAN 17 2020 15.0 Calls @ 4.20
Sold to Open VRX JAN 17 2020 15.0 Puts @ 4.66
Taking the 46 cent credit from synthetic position applying it to the disaster put…
Bought to Open VRX JAN 17 2020 12.0 Puts @ 2.96
This gives a net debit of only 2.50 for the Jan 2020 position. Add the 3 point max downside and get a max loss possibility of 5.50. Based on that, and the 114 weeks remaining in the trade I only need to average 5.0 cents per week in sales to cover the absolute worst case scenario.
So:
Sold VRX NOV 17 2017 14.5 Calls @ .23
#SyntheticStock #LongCallDiagonals – Setting up next week. Had to do this as a roll since it’s in an #IRA . Thought I would get filled at .01/.51 but got .04/.54 instead.
Bought to Close MGM NOV 3 2017 31.0 Calls @ .04
Sold MGM NOV 10 2017 31.5 Calls @ .54
#SyntheticStock #LongCallDiagonals – AAPL only has 2.5 wide strikes right now so kinda limited on roll up. Best I can do is a small debit on front month roll.
Rolled AAPL NOV 3 2017 160.0 Calls to DEC 22 2017 162.5 Calls @ .95 debit
Synthetic stock working great and this debit reduces front month premium received to 2.65
#Earnings today. Also looks like a prime entry for #SyntheticStock . No position here…
#LongCallDiagonals #SyntheticStock -Been waiting for some sort of a pullback to get in this long term Whiz style (again). This is a half position that I’d like to add to when the 2020’s come out.
Bought to Open EWZ JAN 18 2019 40.0 Calls @ 5.02
Sold to Open EWZ JAN 18 2019 40.0 Puts @ 5.92
Taking the 90 cent credit from synthetic position applying it to the disaster put…
Bought to Open EWZ JAN 18 2019 35.0 Puts @ 3.87
This gives a net debit of only 2.97 for the Jan 2019 position. Add the 5 point max downside and get a max loss possibility of 7.97. Based on that, and the 63 weeks remaining in the trade I only need to average 12.5 cents per week in sales to cover the absolute worst case scenario.
So:
Sold EWZ NOV 10 2017 40.0 Calls @ .46
Getting closer to a Whiz ( #SyntheticStock ) entry. Thinking about half now and half later. Wish the 2020’s would get here.
#SyntheticStock #IRA – 2020 LEAPS out so plenty of time to sell the crap out of this one. Earnings in a couple weeks so some good premium to get started with…
Synthetic stock in Jan 2020 for .58 credit:
Sold DIS JAN 17 2020 100.0 Puts @ 11.65
Bought DIS JAN 17 2020 100.0 Calls @ 11.07
Applying the .58 credit to help buy the disaster puts:
Bought DIS JAN 17 2020 90.0 Puts @ 7.18
In the 2020 position for 6.60 debit. Disaster puts are 10 points under the synthetic so max risk in the entire trade is 16.60. Should easily sell 4 to 5 times that much in front month weeklies if DIS goes nowhere and the trade runs the full 116 weeks. That works out to only needing to sell 14 cents a week to cover max loss.
So:
Sold DIS NOV 3 2017 99.5 Calls @ .36
If she can get down to 120 or so (116 would be even better) it will be my next Whiz style #SyntheticStock position…FWIW 🙂
#SyntheticStock #LongCallDiagonals – Booking and selling. Earnings next week so great premium. Selling above the 50ma…
Bought to Close AAPL OCT 27 2017 160.0 Calls @ .09 (sold for .80)
Sold AAPL NOV 3 2017 160.0 Calls @ 1.80
#SyntheticStock – He added this today. I like it. He went 30/30/25 for the LEAPs. I’m using 32/32/27. Same risk and same reward for much lower debit entry.
Synthetic stock in Jan 2019 for 1.03 credit:
Sold MGM JAN 18 2019 32.0 Puts @ 4.66
Bought MGM JAN 18 2019 32.0 Calls @ 3.63
Using the 1.03 to buy the disaster puts:
Bought MGM JAN 18 2019 27.0 Puts @ 2.42
In the 2019 position for 1.39 debit. Disaster put is 5 points under the synthetic so max risk in the entire trade is 6.39. Should easily sell 4 to 5 times that much in front month weeklies if MGM goes nowhere and the trade runs the full 65 weeks.
So:
Sold MGM NOV 3 2017 31.0 Calls @ .44
#SyntheticStock #IRA -For lack of anything better to do I’m putting on a cheap long shot that a buddy of mine has been talking about for awhile. It caught a downgrade this morning so pulling back enough for an entry.
Going synthetic long stock with the 2019 LEAPS and buying protection slightly below that. With the skew the initial position was only a .06 debit. Selling front month calls also a couple weeks out.
Bought to Open HIMX JAN 18 2019 10.0 Calls @ 2.49
Sold to Open HIMX JAN 18 2019 10.0 Puts @ 2.99
Bought to Open HIMX JAN 18 2019 5.0 Puts @ .56
That’s .06 out of pocket but still a 5 dollar downside risk if this thing goes to zero….(you never know)
Then:
Sold to Open HIMX OCT 27 2017 10.0 Calls @ .25
Capping my upside slightly but even if HIMX goes nowhere and the front months average .10 it’s still a nice winner by the end of the run…
#LongCallDiagonals #SyntheticStock -Yesterday…been waiting for some sort of a pullback to get in this long term Whiz style. With the 2020 Leaps now available and the stock dropping a little I put on a starter position at one third size. Hoping to get some chances to add…possibly closer to the 200ma.
Bought to Open AAPL JAN 17 2020 155.0 strike #SyntheticStock (buy the calls and sell the puts)
Bought to Open AAPL JAN 17 2020 145.0 Put for disasters (I would take put profits and add to the long position)
Net debit of 19.20 for the Jan 2020 position.
Sold AAPL OCT 6 2017 155.0 Calls @ .95
With 120 weeks to run only need to sell .16 per week to cover the cost. Any more than that goes to the bottom line even if AAPL goes nowhere. Worse case scenario would be they discover iPhones cause cancer and the stock goes to zero. Max loss at that point would be 29.20. To offset that scenario a weekly sale of .24 will be needed.
Edited for clarity of synthetic stock…
#LongCallDiagonals Here we go…jumping back in. Whiz style but instead of buying a DITM call I’m going synthetic stock with a protective put and selling front months against. June 2019 now available so going out as far as possible.
Bought to Open AMZN JUN 21 2019 1000.0 strike #SyntheticStock @ 38.00
Bought to Open AMZN JUN 21 2019 700.0 Put @ 30.00
Sold AMZN AUG 4 2017 1035.0 Call @ 4.15
Net debit of 63.85 so need to average 65 (.65) dollars per week of front month sales to breakeven. May end up going monthlies if we head back up to give more room. Similar trades on AMZN GOOGL GS JPM EWZ and VRX have capped what could’ve been huge gains due to selling front month too closely.
Options Bistro 