Moving from ratios to fuzzies

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
Collected $2166.


PANW RHT long calls

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.

PANW RHT rolls

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?? 🙂

TWTR roll

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.

MRVL roll

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

DIA roll

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

DIA short calls

Sold Jul13 245c @ 1.61 on Friday. Covered today @ 2.65 because it ran out of extrinsic.
Replaced short call with BeCS DIA Jul20 251/249 @ .58.
While we’re in rally mode, I’m switching from 45 delta short calls on my ratio trades to 35/21 BeCS. I want a hedge but not so tight that it cuts off profits.


Thank goodness for the ratio trades because otherwise, my SSO short calls would be wiping out my profits today.
Rolled Jul13 111.5c to Jul20 116c for 2.53 debit
Rolled Jul13 112.5c to Jul20 116c for 1.72 debit

Rolled SSO long call Sep21 110c to Sep21 112c @ 1.53 credit (resetting to 63 delta)



FAS roll

Rolled FAS Jul6 63c to Jul13 64c for .35 credit.
The ITM short calls in the Jul6 expiry are hitting me in the face today but profit is good so won’t complain.:-)

TWTR short call

Rolled the Jul6 44.5c to Jul6 45.5c for .20 credit. This 2×1 ratio trade has been profitable since entry.

IWM PYPL TQQQ rolling short calls

Rolled IWM Jul6 165c to Jul13 166.5c @ .90 credit
Rolled PYPL Jul6 83c to Jul 13 84.5c @ .97 credit
Rolled TQQQ Jul 58.5c to Jul13 58.5c @ 2.41 credit


BTC DIA Jul13 245c @ .20. Sold @ 1.61
STO DIA Jul13 242.5c @ 1.97

BTC SSO Jul6 113c @ .20. Sold @ 1.18
STO SSO Jul13 111.5c @ 1.46

Core long positions lost the ground they gained yesterday but nice to collect and keep some premium.

MU short calls

BTC Jul6 53.5c @ .20. Sold @ 1.24
STO Jul13 51.5c @ 1.40
Things are getting sloggy going into the close.

DIA short calls

Rolled DIA Jul6 242c to Jul13 245c for .76 debit. Short call had no more extrinsic value and this gives me another $3 of breathing room for next week.


Taking advantage of the bounce

Cleaning out some duds and resetting on the bounce.

DIA, FAS, IWM, SSO, TQQQ, XLY income trades
Reset ETF unbalanced diagonals to Aug or Sept 63 delta long calls, Jul6 45 delta short calls, 3×2 ratio, will roll short call @ .20 or when at risk of assignment, reset when core has less than 30dte

MRVL, PANW, PYPL, RHT, TWTR income trades
Reset stock unbalanced diagonals to July 27 or Aug 63 delta long calls, Jul6 45 delta short calls, 2×1 ratio, will roll short call @ .20 or when at risk of assignment, reset when core has less than 30dte

AMZN, GOOGL, ISRG, MSFT, and NFLX earnings trades
Bought BuCS or long calls one expiration past earnings. Typical long call is 40 delta or BuCS with 40 delta long call and short call 10 to 20 points away. I use the BuCS trade when calls are expensive and risky (AMZN for example)

ADBE, BA, BIDU, FB, LABU, MSFT, NVDA, and TNA Fundies (fast unbalanced diagonals)
Closed all my fundies after exhausting all reasonable possibilities of recovering losses with short calls. I didn’t open new trades on these tickers. I want a much smaller book of trades to manage going forward. Although fundies do well on a backtest, the drawdown during a choppy period adds too much risk for my taste. This trade will be left in its Petri dish by the side of the road.:-)

If anyone is interested in the trade specifics, please let me know and I’ll share.

#unbalanceddiagonal #earningstrade

RHT falling knife

I lost a significant amount of money on a pre-ER trade in RHT. I opened an Unbalanced Diagonal to try to claw my way back to profit. The chart looks really broken so taking a risk here but hoping to collect some income along the way.
BTO Jul27 140c x3, STO Jun29 146c x2 @ 20.95

Mama Cash summer kickoff

On pullback, added Fundies in FB, PANW, SSO, TNA, TQQQ, XLY. Jul20/Jul6 3×2, 63/45 dte.
Converted BA and DIA from unbalanced long diagonals to bear call spreads. Charts are broken. Attempting to get back to even.
ILMN Supercharger closed for profit. STC ILMN Jun22 275/280 BuCS @ 4.70 (2). Bot @ 3.91

CRM for a quick profit

I bot an unbalanced diagonal on CRM a couple days ago for a longer hold but it hit a profit decision point today so decided to TTMAR. It triggered a daily squeeze 8 days ago and extrinsic on the short calls was all but gone. Nice problem to have.
Bot CRM Jul18 130c (5), Sold Jun22 135c (3) @ 27.08. Sold @ 35.83.

PYPL team effort

@smasty160 and I teamed up to pick a financial stock to add to our unbalanced diagonal portfolio. Here’s my PYPL trade:
Bot PYPL Aug17 82.5c @ 6.09 x5, Sold Jun22 86.5 @.81 x4 for $2720 total.

#coveredcalls, #syntheticcoveredcalls

WDAY 3×2 #unbalanceddiagonal Want more…

#unbalanceddiagonal WDAY 3×2

Want some exposure to financial services and like WDAY chart. Oops! WDAY is in the software industry/tech sector. Thanks, @smasty160
WDAY 3×2 +Jul27 124/-Jun22 128 call ratio @ 17.20

SSO 3×2 ratio call spread


Bot 3/-2 SSO Jul27 115/Jun22 118 call/call @ 11.63
Will transform this into 5×3 ratio on a pullback after fed announcement. This is a nice trade for smaller accounts.

Jun 13 SPY Plan

Good Morning! Who agrees with me that the best commercial EVER was the Geico Wednesday (Hump Day!) camel?

So the #Saf-T trades are performing better than I expected, with very high degrees of protection. I have quite a lot of SPY that I had sold calls against for today, so the calls would be cleared by pre-ex-div tomorrow. They are in the money so I’m going to let the shares get called (if FOMC cooperates). Then I will clear and reset the 45-day 40-delta puts (protection is cheap again). I see that the Friday SPY puts have the dividend in them, so rather than hold shares for a div, I will sell a boatload of 1-strike ITM puts for Friday. Selling ITM puts is the same trade as a covered call, so this will be a way of getting the virtual dividend, coupled with extra premium that a call would bring in. Due to the upcoming drop in stock price on Friday for ex-div, I should get the assignment I want to re-populate the share position.

BTW, here is a pic of the price slices on my 3000 shares of SPY. Note the risk control in place on a 10% drop. A 10% market drop yields a 2% capped drop. This is great for higher yield cash storage…way higher than a CD/Money Market, but safe.

I’ll update here when my reset is complete, including the realized profit for the week on this trade.


Here’s a Hump Day remix….actually it’s a tad creepy 🙂

#coveredbackratio, #doubleratioundie, #unbalanceddiagonal, #undie

Jun 12

TWTR: Virtual Call Assignment (position closed) for $688 net profit on a 10×8 #Undie . Extrinsic value ran out on the 40.50 short.

#doubleratioundie, #unbalanceddiagonal

Jun 8 trades

Busy day here! Every single one of my #Saf-T trades is in the money for expiration, so I’m executing share calls and resets on them in multiple accounts.

LMT: I rolled into strength this morning, which means I rolled at the day’s high. This means that I didn’t collect a whole lot on the jun 8 calls ($222 of $1416) but I sold really high for next week, $2550 worth. If you recall, I’m now using LMT as a proxy to recover RTN losses (apples to apples in just one account). Last Friday the LMT-RTN was $-3858. Today it is $-3157. Gettin’ there.

My total premium sold for today was $14,894. It looks like I will collect $10,184 for a 68% retention.

I almost forgot my note-to-self about ETF divs next week and started a roll into next week. I quickly fixed that. All my SPY rolls are to Jun 13, the TQQQ rolls are to Jun 22, pretty far OTM.

Everyone have a fun and safe summer weekend! It’s been a great week for covered’s.

Oh…anyone in TWTR short calls….just keep an eye on extrinsic value, no action today necessary.

#nightstalker, #pietrades, #unbalanceddiagonal, #unbalanceddiagonals

@smasty160 Sue, would you hold…


Sue, would you hold any Aug/Sep/Oct #unbalanceddiagonal position over earnings, or close prior to earnings?

Jun 7 Trades:

ADBE: This started as an Aug/Jun 15 #UnbalancedDiagonal 7×5, until I realized I had forgot about earnings next week. So I scratched the qty 5 short calls for Jun 15 and sold 7 instead for this week. I took profits out the gate this morning for $602 total. I’d like to thank @mamacash for the idea to flip it to this week. Update: I did NOT see this drop coming, fully admit I had some luck jumping on profits at the open for my exit. My closing timestamp was 07:31:19, one minute after the open.

AMZN: Opening trade, protected #UnbalancedDiagonal 1. Bought July 1650 call x2 @ 80.05 2. Sold Jun 15 1700 call x1 @ 18.87 3. Bought Jun 15 XLY 108.5 puts x10 @ .38. One thing I’m learning at the pit is using partial profits on one trade setup as a sacrificial hedge (aren’t all hedges sacrificial…it was fun to say 🙂 ) in either the same or different/correlated product. It seems obvious, but I haven’t been doing much of that. So the XLY puts take $380 of the Amazon profits for a little extra downside protection. I continue to peel away more and more risk for trading this behemoth. Just a few weeks ago I was taking $160K risk, now it’s down to around $10-12K of risk.

Still to manage this week: I still have zero assignments on the Saf-T’s, LMT x2 (LMT lookin’ good! Will definitely put a dent in the RTN loss), that’s it!


June 6 trades

BA: I’ve got two of these on, a #CoveredBackRatio and an #UnbalancedDiagonal . The CBR had a virtual call assignment today, closing the full position for a net $2964 profit on an 8×4 setup. The UB I put on right before the close yesterday and is up smartly today.

TWTR: Opened a new Unbalanced Diagonal: Aug 37 call x10 @ 5.25, sold Jun 15 40.5 call x8 @.92. I’m really loving these unbalanced diagonals, how you can really bring the long strike up closer to ATM, thus lower risk, and at the same time bring the short call down closer to ATM (collect more $$), but the ratio makes the trade work so well.

SPY added a few more #Saf-T contracts. I’m still waiting for Saf-T shares to get called so I can reset them. I decided I make more profit waiting for full profit and paying the assignment fees, vs front running the assignment myself and giving up a few cents in order to save the fees.

I expect a really slow day from here on. It’s a “theta day” where I just sit back and catch the pennies.


#fuzzy, #pietrade, #supercharger, #superchargers

June 5 Trades

TWTR: Out the gate executed a virtual call assignment for $1889 profit on a 10×7 #UnbalancedDiagonal . That’s multiple thousands of profit (in a couple accts) since I suggested the TWTR stock replacement idea to y’all about 10 days ago. Flat TWTR right now.

#coveredbackratio, #coveredcall, #pietrades, #saf-t

June 4 Trades

Ahhh, I love June!

I have 2 “Virtual Call Assignments” today due to extrinsic losing most of its value:
TQQQ 6×3 #CoveredBackRatio netted $837 (closed entire position)
MSFT 14×8 #CoveredBackRatio netted $1120 (closed entire position)

Rolled MU Jun 8 to Jun 15 qty 5 calls for $670 profit on jun8

MA debit rolled calls from Jun8 192.5 to Jun15 195 for -$654 on a 2-lot



#LongCalls #LEAPS #UnbalancedDiagonal – Book it. Still selling in a quantity that practically eliminates upside risk just in case…

Bought to Close EWW JUN 1 2018 46.0 Calls @ .03 (sold for .50)

Sold EWW JUN 15 2018 45.5 Calls @ .49

May 31 #UnbalancedDiagonal LMT This…

May 31 #UnbalancedDiagonal LMT
This seems like an appropriate name for the trade developments from last night? The Unbalanced Diagonal replaces the back ratio with a time ratio. It should accomplish the same or better (significantly better on a directional trend) outcome with slightly less risk. I absolutely love the collaboration last night on this!! Thanks @fuzzballl for your discovery weeks ago of the time ratio!


Here’s my first trade:
LMT 1. Bought 5 Sep 310 calls @19.00 2. Sold 3 Jun8 320 calls @ 2.57
Max Risk: $8729, Weekly return on risk: 8%