June 25 (anniversary of Custer’s Last Stand, plus smasty BD :) )

A lot of trades today, rolling down short calls. I started the week this morning with $22,516 in short call premium to collect. That provided a cushion for today, but of course it’s not a 100% hedge.

1. AMZN rolled the 1745 calls down to 1720 for this week, collecting $1661 on the original calls and another $7.25 on the new one.
2. Closed the SPX #UndieBear for $5090 profit, if you add Thursday’s $1290 profit onto this, that’s $6380 in 3 days. This was a small 2×1.
3. GS and QQQ: got the butterfly fill on my Put In/Out trades from about 10 days ago. This locks in partial profit and cuts risk on them. I start with a skip-strike in-and-out spread, then look to butterfly it w/ a broken wing for half the price of the first spread.
4. MU rolled down calls from 62 to 57.5 (25 delta) for $1523 profit on the original ones and an add’l $376 on the new.
5. TSLA closed out the put fly and put spread for around $80 profit I think, wanted to simplify book this morning.
6. SPY #Saf-T rolled Wed calls out to next wed, collected $1536 on this week’s calls. My protective puts on #Saf-T are up a collective $32,800. They are sentries for me right now.
7. MCD added a put diag to my #Undie to balance deltas and bring in some premium for next week, cuts risk.

Don’t get me wrong, big losses across the board here, but all these trades are easy for keeping your head on straight. Just collect the hedges and reset.


Jun 20 Sue Trades

AMZN “vol fly” Price is sliding down the T+1 line slope, so flattened delta by buying 10 shares of stock @ 1750.11.

SPX: #UndieBear I needed a little downside balance against my long portfolio, so here’s the first Undie bear. Bought Aug 2800 put x2 @ 60.50, sold 1x Jun27 2750 put @10.00. The ratio means there is no profit ceiling on a downside move. 20-day historical vol is under 10%, so buying low here. The trade has over 700 vega, any down move and this should explode.

AAL: Abandoned this position due to poor technicals. Net loss $434.00 on a 10×8 #Undie with a couple rolls. This was a July long too, so wanted to get as much salvage value as I could on the long before accelerated decay. This was a Mark Sebastian pick that I followed. At one point it had very nice profit, but I was piggie 🙂

GS: Rolled calls from Jun 22 to Jun 29, 235 to 232. Netted $946 on 5 lot on Jun 22, Jun 29 sold for $1.52x 5. This is another position I’m not happy holding. Earnings coming up in a few weeks, so I’ll collect some additional rolls on this. GS: Added an in-out put bear spread for more short delta: jul 13 230/225 @ 2.36 x4. I like to butterfly these after a favorable move to lock in some profit.

ROKU: Closed #Fundie for target 20% profit, $165 net. Will evaluate a reset. ROKU is dropping off the Fundie list, Ms. Cash and I have a list of about 22 good Fundie candidates, and ROKU didn’t make the cut.

MSFT: New #Fundie in the earnings cycle for a pre-ER price/vol run up. Jul 20 100 c x6@4.05/Jul 6 103c x -4 @ 1.04. Target profit is 20%, $805 (this target might be a bit high).

PYPL: Closed #Undie for $817 profit. I’ve had a couple of these lately where nice profits evaporated. Plus just found out I might be called away from the trading desk temporarily, so decided to TTMAR. It was a 16×13…so had higher risk.

MA: Closed #Fundie for $135 profit….might be called away on an emergency so clearing out a few things. This was a 3×2.

SPOT: Closed #Fundie for same reason as above. Up $540 today, net $70 profit. 3×2.

June 18 Sue Thread

ADBE: First #Fundie close for 20%, $425 in one day. This was a 30/14 3×2 time ratio. Trade reset immediately as per the backtest: Jul 13 252.5 x 3, jun 29 257.5 x -2 @ 18.35. I am starting with positive gamma/positive theta on this trade…which is kind of a unicorn 🙂

ROKU: Closed #Undie for $844 profit, reset as a #Fundie Jul 13 43.5 call x3, Jun 29 46.5 call x-2 @8.07.

On both of these trades I should have shifted dates to Jul 20/ Jul 6.

SPOT: #Fundie new test trade here: Jul 20 170 call x3 @10.20 Jul 6 177.5 c x -2 @4.30, target profit $440 for 20%.

MA: New #Fundie Jul20 197.5c x 3, jul 6 202.5 c x -2, @15.20 $300 target profit for 20%.

Here’s backtests on these (parameters: 30 day 63 delta long, 14 day 45 delta short, take profit at 20% and reset):


Jun 14 SPY (con’t)

Yesterday I posted a plan for SPY with ex-div tomorrow. The plan involved the assignment of all my #Saf-T SPY shares, then replacing those with short puts for tomorrow expiration….which happen to have the div already priced in, along w/ a little premium.

As it turns out I had about 1000 shares called, but most of my short calls for last night’s expiration expired for full profit.

So I sold tomorrow’s 279 puts to replace the 1000 shares that were called yesterday, at $1.65.

Unless the market goes bonkers tomorrow, this is a guaranteed assignment due to the SPY price action on ex-div day (a $1.10 drop in price is guaranteed).

I have also done the required long put coverage for #Saf-T trades, buying Jul 27 276 puts.

So, for tomorrow: 1. I collect SPY dividend on 2000 shares, $2200 (pay date is actually next friday I think). 2. I collect the put premium on 10 puts $1650. 3. I take assignment of 1000 shares @ 277.35 (adjusted). 4. I can re-commence selling weekly premium on the shares.

#coveredbackratio, #doubleratioundie, #pietrade, #undie


Supercharger closed for target profit in spite of earnings tomorrow. Whew! Bot position in two layers.
Bot ADBE Jun15 237.5/242.5 BuCS x2 @ 3.99. Sold @ 4.70
Bot ADBE Jun15 237.5/242.5 BuCS x2 @ 3.30. Sold @ 4.70



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