Due to low IV, I’m moving to fuzzies for my core trades. On Friday, I closed my ratio trades: DIA FAS IWM PANW RHT SSO TQQQ TWTR XLY all for profit except TWTR. I was able to roll long call deltas down multiple times to collect income on most of these trades. It was a good run in July.
Opened new fuzzies yesterday, Aug24 expiration: DIA, IBB, IWM, QQQ, and SPY. Will reset these positions when core is double the debit paid.
Life is busy so not posting the specifics of all these trades. Most of you know the drill on income trades better than I do. Questions? Please ask.
Rolled long call deltas on some ratio trades down from 70-75 to 62-63 delta for credit.
DIA 1.47 credit
FAS 1.36 credit
SSO 1.50 credit
TQQQ 1.38 credit
XLY 1.51 credit
Rolled delta down on PANW long call from Aug 210c to 215c for 3.42 credit.
Rolled delta down on RHT long call from Aug 142c to 145c for 2.05 credit.
Current positions are now fully paid for by credit rolls on the long calls. Hedges still have extrinsic value but will need to managed soon.
Rolled PANW Jul13 207.5c to Jul20 215c for 2.82 debit
Rolled RHT Jul13 142c to Jul20 145c @ .44 debit
Be happy when your short calls get run over. Really?? 🙂
Rolled TWTR Jul13 45.5c to Jul20 43.5c @ .92 credit.
TWTR is going the wrong direction but overall trades are profitable so hanging in for now.
Sold Aug17 21c and bought Aug17 22c for .64 credit. Rolling long call delta down from 76 to 63.
Still holding Jul20 22.5 short call for extrinsic.
My goal is to pull enough cash out to cover the trade. This tactic only works in a rally or a bullish trend. I won’t share all of these trades but a couple people asked for more info. @mortlightman
Rolling both core position and call credit spread.
Sold Aug17 245c and bought Aug17 247c for 1.45 credit. Rolling long call delta from 70 to 60.
BTC Jul20 249/251 BeCS and STO Jul20 251/253 BeCS for .43 debit. Switched from short call hedge due to current market conditions.
This is the third time I’ve rolled my DIA core from a 70-80 delta to a 60-65 delta. Rolling the core delta down allows me to maintain my 3×2 ratio trade while pulling cash out to pay for trade. This is a free trade now. @mortlightman