#VXXGame Bought to Open $VXX June 2022 10 puts for .30, adding to existing prositon. Looking to try this with some $UVXY after reverse split.
#VXXGame Long strategy that I haven’t done in awhile, but is perfect to enact after a reverse split. Iceman put on a few similar trades the other day. There should be another reverse split before these expire.
Bought to Open $VXX June 2022 10 puts for .35
Bought to Open $VXX Jan 2023 10 puts for 1.05
I will add more when premium gets lower.
Traveling today so posting all today’s trades:
Sold to Close 1 SPY Nov 27 2020 360 Call at $4.41 for a breakeven trade. Bought this as the long side of a SPY diagonal spread on 10/08 @ 4.38 and wrote against it a few times.
Sold t0 Open 1 CINF Dec 18 2020 85 diagonal call @ 1.05. Sold against an existing March 90 Call. Replacing a similar short call that expired Friday. #DoubleDip
Two new VXX Contango specials:
Bought to Open VXX Jun 18 2021 8.0 Puts / Sold VXX Dec 04 2020 17.0 Puts @ 0.06 Credit
Bought to Open VXX Jun 18 2021 7.0 Puts / Sold VXX Dec 04 2020 16.5 Puts @ 0.02 Credit
AAL 10/09/2020 14.5 Covered Call
ADS 10/09/2020 51.0 Covered Call
KSS 10/09/2020 22.0 Diagonal Calls
WBA 10/09/2020 37.50 Covered Calls
WDC 10/09/2020 40.0 Covered Calls
VXX 10/09/2020 27.0 Diagonal Call
VXX 10/09/2020 27.5 Diagonal Calls
VXX 10/09/2020 28.5 Diagonal Calls
VXX 10/09/2020 29.0 Diagonal Calls
VXX 10/09/2020 29.5 Diagonal Call
VXX 10/09/2020 30.0 Diagonal Call
VXX 10/09/2020 31.0 Diagonal Calls
WFC 10/09/2020 22.0 Diagonal Puts
SOLD -1 VXX 20 NOV 20 65 CALL @2.76
had bto @ .92 on 8/13/20
#VXXGame Bought to open $VXX Aug 21st 65 calls for .50. Added to a large number of 85’s I have for same expiry. I have not yet sold against these, but will look to do on next down turn. I have a smaller number of long $UVXY 90 calls expiring today, average purchase price .47.
following Jeff and others from yesterday.
BOT VXX / 21 AUG 20 80 CALL @.49
#VXXGame Bought to Open $UVXY July 17th 90 calls for .47. I’d prefer to go further out in time but there are no August options yet and September’s are still pretty expensive. I’m looking to add some Sept soon.
#VXXGame Loading up some longs for next volatility spike. In March, some of these I bought for .30 were sold for over 50.00. Be surprised if that happens again, but at least they can hedge any shorts I sell. Also trying some $UVXY but wasn’t filled yet.
Bought to open $VXX August 85 calls for .50.
#VXXGame Sold to close $SVXY Jan 2021 35 calls for 4.40. Bought for 4.114 (avg price) on March 26 & 27. What a bust… this thing hardly moved. TQQQ much better choice to get long at lows.
Following Jeff from last week, bought Jan. 2021, 35 call for 3.85.
#VXXgame BTO $SVXY Jan 2021 35 calls for 3.90, adding to position started yesterday.
#VXXGame Bought to Open $SVXY Jan 2021 35 calls for 4.65. Considering this was in the high 60’s just last month, I figure this has good chance of profiting. I will scale into more when the market retests the lows.
#VXXgame Sold $UVXY March 27th 50/60-130/140 condors for 3.65.
#VXXGame. Since most of my options are expiring this Friday, I’m closing the whole batch of shorts AND longs. All shorts are now closed, and half the longs. I am riding the rest higher as long as it keeps going up.
#VXXgame Bought to close $UVXY short stock for 64.00. Assigned via 15 calls on Tuesday.
On this UP day I’m making moves to get shorter on the market. I do not believe anything’s going to get better before it gets worse.
#VXXGame. BTC $UVXY March 20th 40 short calls for 10.35. Sold for 5.50 on March 6th. Still have more longs than shorts, but I think I can roll this one up if I wait a few more days.
Also early assigned on a couple of March 20th 15 short calls; didn’t notice earlier or would have closed. Will look to close today and then resell when market goes lower, as I believe it will.
#VXXgame My first purchase of puts: Bought to open $UVXY April 17th 20 puts for 1.39. I screwed up on my order, this can be gotten for less.
#VXXgame Sold to Open $UVXY March 20th 40 calls for 5.50. Against a higher number of March 25 and 35 longs.
#VXXGame Sold to Open $VXX March 20th 29 calls for 1.95. Offset against March 25 and 27 long calls. First ones I have sold ABOVE my longs, which were bought for .30 and .26 respectively.
#VXXGame Earlier, sold $UVXY Apr 17th 19 call for 4.65. Adding to the position. Number of shorts in VXXGame is still about one-third number of longs.
Unfortunately I’m going to have to dump out of $DRIP short calls. They are my only positions going against me badly, since I have long options hedging my $UVXY and $VXX shorts.
We are poised now to see the worst week in the market since the financial crisis. Even in best case scenarios with corona virus, it’s likely to scare the markets for a few more weeks. What this will do to $XOP is uncertain. But since yesterday’s close we are going to open 4.4% lower. This means DRIP must open (x3) 13.2% higher. So a .70 drop in XOP means at least a $21.00 rise in DRIP.
Frankly, most of my accounts can’t handle it, and I need the margin to sustain and place other positions. I will try to profit from DRIP’s eventual decline, but I’ll have to wait until it’s actually underway. Fortunately, I didn’t go nuts and only have 3 calls on two accounts, and 2 calls in a third account. I kept my smallest accounts out of it completely.
Other than a couple misadventures over the years, one in $KOLD and a couple in $NUGT, the #ContangoETFs strategy provides a pretty smooth income. But these outlier moves are too damaging, so I’m going to cease the naked calls and use diagonals or spreads, like many of have switched to in #VXXGame and many of you are already doing in DRIP.
#VXXGame Sold $UVXY April 17th 19 calls for 2.75. Keeping more longs than shorts, but they are in an earlier expiration.
#VXXGame Sold $UVXY March 20th 16 calls for 2.25 (against long 25’s and 30’s)
Sold $VXX March 20th 18 calls for 1.64 (against long 25’s and 27’s)
#VXXGame First VXX shorts of the year: Sold $VXX Apr 18 calls for 2.00. Against long 25 and 27 calls.
#VXXGame Sold $UVXY March 20th 15 calls for 2.14. My first short positions of the year against 25 and 35 long calls bought in recent weeks.
#VXXGame Bought $UVXY March 20th 35 calls for .31. Adding more longs to sell against. Already sold March 25 calls last week, as well as VXX March 25 calls.
I haven’t started selling yet. I’m going to wait for higher volatility…. that may mean I miss out on this current pop, but that’s okay. I’d prefer to wait and possibly miss out, than sell in the early days of a bigger correction.
From a column from Stansberry Digest
A couple years ago, I downloaded all the VIX’s closing-price data since its inception in the early 1990s…
I discovered that the long-term average was around 19… but the long-term “modal value” – the value that appears most often – was about 12. In other words, the VIX spends more time at about 12 than any other value.
For a brief time, I tried to use this information to trade VIX futures… I roughly broke even. But more important, I learned a lot about these futures, which I’ll never touch again.
You see, VIX futures are defective. They simply don’t work.
The nearest-term contract (called the “front month”) should roughly reflect any moves in the VIX. But when the VIX soars, this contract doesn’t rise nearly as much as the VIX itself… If the VIX doubles or triples, you’re lucky to get a 50% move higher from the front month. And it’s worse for the second month, the third month, and all the other months.
This disconnect happens because there’s no real tie between the futures and the VIX. There’s no deliverable VIX commodity… like you have with gold, pork bellies, wheat, or Malaysian palm oil.
VIX-related exchange-traded funds (“ETFs”) are based on futures, so they perform poorly, too. These ETFs are some of the worst garbage securities on the market…
Some VIX-related ETFs are debt-based, meaning buyers basically lend money to investment bank Barclays or another big institution… with zero promise to get repaid… and zero interest payments along the way. That sounds like a pretty good deal for Barclays!
Now, I want you to look at a long-term chart for one of these VIX-related ETFs…
The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) is the biggest VIX-related exchange-traded product. VXX has about $878 million in net assets today. (“ETN” stands for exchange-traded note, which just means it’s debt, not equity like an ETF.) Take a look…
As you can see, the chart looks a lot like a ski slope, falling from the left to the right… a record of endless value destruction. To me, VXX – and all the other VIX-related ETFs – is nothing more than a legal scam to separate unknowing investors from their money.
You shouldn’t get all technical with trading VIX futures. Instead, there’s a much better – and safer – way for investors to “buy volatility” and profit from rising fear in the markets…
Hold plenty of cash and own some gold.
In a serious equity rout – which almost nobody is predicting right now – those two assets should treat you well. They’ll protect your wealth… and allow you to take advantage of all the countless cheap opportunities that arise when other investors have been wiped out.
#VXXGame . Bought to open $UVXY March 20th 25 calls for .32, and $VXX March 20th 25 calls for .24.
These are longs I can later sell against, assuming a volatility spike will be coming before too long.
#VXXGame Bought to open $VIX March 17th 17/20 call spreads for .52.
Also, added to Feb 18th 19/22 for .28. First bought on Nov 18th for .60.
#VXXgame Now that the Great Iran Volatility Event of 2020 has ended (or at least paused), we hit new all-time lows on $VXX and $UVXY today.
#VXXgame Sold to close $VXX Jan 17th 20 puts for 4.00. Bought between Jan 22 and Aug 27 for avg price of 1.30. Sold four batches so far at 2.65, 3.00, 3.25, 3.50, and 4.00.
My research over the history of VXX and UVXY show that this trade usually works. Of course, the first year I had a robust position (last year), it failed as the market went straight down from September until Dec 24th. But glad it worked out this time.
On next pullback I will start buying VXX and UVXY 20 puts to sell next fall. A reverse split will really help this work better, but not sure if we’ll get low enough before a pullback comes.
#VXXGame Bought to open $VIX Feb 18th 19/22 call spreads for .60. Added to the Jan 21st 17/20 already holding.
Is this a good time to start buying VXX calls? 🙂
#VXXgame Sold to close $VXX Jan 17th 20 puts for 3.50. Bought between Jan 22 and Aug 27 for avg price of 1.30. Sold four batches so far at 2.65, 3.00, 3.25, and 3.50.
Still holding a final batch. Going for 4.00.
#VXXGame Sold to close next batch of $VXX Jan 2020 long 20 puts for 3.25. Bought for avg price of 1.30. Still holding more.
#VXXGame Closed second batch of my $VXX Jan 2020 20 puts, sold for 3.00. Bought between Jan 22 and Aug 27, avg price 1.30. Still holding several more.
#VXXGame This is the first closing of my $VXX Jan 2020 20 puts, sold for 2.65. Bought between Jan 22 and Aug 27, avg price 1.30. Still holding several more.
#VXXGame . Sold to close partial $UVXY Jan 2020 long 20 puts for 3.75. Avg price on purchase, 1.85. Holding others for better price. Also have larger amount of VXX Jan 20 puts, avg price 1.30. Now going for 2.55… will start selling these soon.
#VXXGame. Bought $VXX Jan 2020 20 puts for 1.00, adding to my position. Avg price now 1.302, started on Jan 22nd, 2019.
#VXXGame Bought to Open $UVXY Jan 2020 20 puts for 1.95. First purchase of this symbol for the long put play.
Also, adding to my position on $VXX:
Bought $VXX Jan 2020 20 puts for 1.25 back on Aug 5th,
Bought more for 1.20 today.
Avg price on my whole batch is now 1.40.
#VXXGame Bought more $VXX Jan 2020 20 puts for 1.40. Adding to first batch I bought for 1.75 on Jan 22nd.
The 2021 puts are still too expensive, but I’m watching.
#VXXGame Bought to open $UVXY April 100 calls for .60. I have these for Feb and Mar. Since Feb expire tomorrow adding the April batch. Will be used to sell lower strikes against if we get a re-test.
Bought to open $VXXB Jan 2020 20 puts for 1.75.
A starter position for a 12-month trade. My bigger target will be the 2021 LEAPs, which are still pretty expensive, but should lower in value by late summer, provided we don’t enter a bear market. I may also look at ATM puts and sell puts against them, but this OTM position is meant to be a cheaper play that stands alone without cost reduction.
#VXXGame Bought to Open $UVXY Feb 15th 100 calls for .36. I want to have room to sell premium if we get another market pull back. If we don’t, then small loss. (these reached a peak of 13.00 in late December)
#VXXGame #LongLEAPs Over the years I put a lot of research into the idea of buying long $VXX LEAP puts, since the symbol is dragged toward zero over time. I built an extensive spreadsheet showing how this strategy would have worked with every VIX leap expiration since 2006 except Jan 2009, during the financial crisis. (VXX was created in 2009, but there are models available of how it would have performed going back to 2004).
Other than Jan 2009, the 18-month to 24-month decline in $VXX is usually 60-90%; even as much as 97% down over 24 months.
So when I started buying the Jan 2019 VXX 20 puts on September 5th, 2017, the odds looked pretty good for a decent profit. I started scaling in and ended up with a total of 32 puts over multiple accounts, average price 1.603. I also sold some 50/60 call spreads against it, lowering that cost basis down to about 1.20.
But, guess what? Picked the wrong year! This is the first LEAP expiration since 2009 where this strategy did not work. And now $VXX is going away at the end of this month, replaced by $VXXB, which doesn’t have much volume yet. However, they HAVE finally added LEAPs, so I’ll be looking to start buying.
Also, because of the product termination, I closed my final short shares in $VXX today for 37.25. I was assigned 100 shares short for 27.00, and had managed to scale out of 30 of them when we dipped below 27.00 in September. Then, October happened.
#VXXGame My attempts at legging out of the $UVXY Dec 21st 50/60 call spreads were also a failure, but only a bit worse than allowing them to expire. Sold for 5.68 (avg price), some will expire for 10.00, some closed for 10.60, and assigned short shares on a couple others, cost basis 69.43.
Also, I took off some risk this week without rolling. First we’ve experience a market like this 2008, and I wasn’t trading then. I hold very few short options positions compared to many times in the past, and my remaining short $UVXY calls are hedged with a greater number of long calls, albeit much further OTM.
Suffice it to say the only thing working right now are the 1-day SPX condors. I’m finished trying any more directional positions until market is clearly finished with this. If we go much lower, I will continue to shed positions slowly.
BTC $UVXY Mar 15th 75 call for 16.00, sold for 6.125, avg price, in Sept/Oct
BTC $UVXY March 15th 95 call for 10.15, breakeven, sold for 10.15 in late October.
Closed $SOXL Feb 15th 75 put for 12.70. Sold for 7.00 as a roll.
#VXXgame I had sold $UVXY 50/60 Dec 21st call spreads(for 4.35 and 7.00) in belief volatility would be calmed going into Xmas. Wrong.
On one account, I was assigned short stock at 50.00. I sold the long 60 calls for 12.60 today, and covered stock f0r 71.10, meaning out of the spread for 8.50.
On the other accounts trying to close one of the spreads for 9.30 but not getting filled. I’ll see if assigned tonight and deal with closing on the swings tomorrow.
#VXXGame We just exceeded the 10/29 high of this correction on $UVXY.
The $VIX is still 3 points below its correction high set on 10/11.
We are setting up today to hit our 7th downside warning in this correction.
#VXXGame Sold $UVXY Dec 21st 50/60 call spreads for 7.00. Adding to my position I started for 4.35. This is entirely ITM, but I feel volatility will be quieting into Christmas, and a drift back below 50 in reasonable to believe in 2 weeks. Even without a true Santa Claus rally this can happen. Looking at the VIX and UVXY today, they’ve been drifting lower this afternoon, even as SPX continued lower. If I am wrong, it’s manageable as a spread.
#VXXGame Sold to Open $UVXY Dec 21st 50/60 call spreads for 4.35. Max risk 5.65, but also can manage to roll if we stay above this level for 2 more weeks.
Also, Sold UVXY Jan 2020 135 call for 9.50.
Closed my other $UVXY March 112 call for 3.25. Sold for 7.00.
Closed UVXY Jan 18th 95 call for 1.87. Sold for 6.90.
Bought (2) Dec 7th 100 calls for .18. Released 4.5K in buying power.
#VXXGame – My current view on the market into year-end: one more shove lower, hopefully with a panic dive toward 2500. Then, higher into year end and January.
I making a couple of $UVXY moves to free up some buying power so I can sell higher-premium calls on that dive.
Bought to Open UVXY Dec 21st 140 calls for .12. I have more long calls than short ones… they are all far OTM but will help manage the chaos should UVXY decide to shoot up to 100 on the panic.
Bought to Close UVXY Jan 18th 112 call for 1.30. Sold for 5.25.
Bought to Close UVXY March 15th 112 call for 3.70. Sold for 7.00, avg price.
#VXXgame BTC $VXX Dec 21st 50 call for .77. Sold for 3.50 on July 11th.
#VXXGame Sold to Open $UVXY June 90/140 call spreads for 5.70.
Also, earlier, I bought 2 Dec 7th 110 calls for .26, which relieved over $5K in buying power.
#SPXcampaign Everything just started happening on this spike down. Multiple orders filled:
BTC $SPX Nov 15th (monthlys) 2765/2785 call spreads for .30. Puts closed earlier for .05. Condor sold yesterday for 1.05. Removed overnight gap risk.
Sold to Open $SPX Nov 16th 2630/2650/2790/2810 condors for 1.15. The volatility bump got me filled. Mid-price said only .80 a few minutes ago.
Also: Bought to Open $VIX Jan15th 16 puts for .75. My Nov puts didn’t work, my Dec puts might, and now I have Jan!
#VXXGame Sold $UVXY June 100 calls for 6.90
#VXXGame Bought to open $VIX Dec 18th $VIX 16 puts for .80.
I tried this for Oct 30th with a full loss. Holding a batch for Nov 16th, underwater, needs a huge post-election rally.
These December contracts have a better shot.
#VXXGame I may be late on this, but since I don’t remember seeing it posted:
Strikes added in $UVXY up to 122 in all expiries except Jan 2020, which is 120.
Also, June is now available.
New highs today. Rolling my lowest strikes, the Jan ’19 70 calls.
#VXXGame Throwing one more out there…
Sold $UVXY March 112 call for 8.75. Adding to one sold for 5.25.
#VXXGame Bought to open two each of the following, giving me almost $10K in margin as they release pressure from short calls.
BTO $VXX Jan 2019 105 calls for .44
BTO $UVXY Nov 16th 112 calls for 1.25
I do think we will have at least one more drop before recovery.
Filled near the highs: Sold $UVXY Jan 2020 112 call for 14.50.
#VXXGame Highest Strikes
Sold $UVXY Dec 21st 112 call for 3.10 (yesterday)
Sold $UVXY March 112 call for 5.25 (today)
AMAT: Added last of the long LEAPS reducing basis.
Bought to Close AMAT OCT 26 2018 41.0 Calls @ .02 (sold for .43)
Bought AMAT JAN 17 2020 50.0 Calls @ 1.15
Bought to Close DG OCT 19 2018 112.0 Calls @ .05 (sold for .65)
Sold DG NOV 2 2018 108.0 Calls @ .85
DUST: Nice drop today. Luckily ratio’d at 2×7. Rolling the short puts down and out. Long puts working nicely.
Rolled DUST OCT 12 2018 37.0 Put to DUST NOV 16 2018 35.0 Put @ even
Sold OLED OCT 26 2018 120.0 Call @ 1.20
Sold PYPL OCT 26 2018 82.0 Calls @ .94
Bought to Close SMH OCT 26 2018 108.0 Calls @ .06 (sold for .95)
TLT: Getting out of the way a little with my triple size position. One winner one loser with a net winner.
Bought to Close TLT NOV 2 2018 118.0 Calls @ .15 (sold for .44) .29 gain
Bought to Close TLT NOV 9 2018 116.5 Calls @ .64(sold for .47) .17 loss
UVXY: Haven’t sold these naked very often since Aug 2015 🙂 Sometimes it’s too good to pass up.
Sold UVXY DEC 21 2018 95.0 Call @ 8.25
#VXXGame UVXY added strikes up to 95 in all expiries. $VXX up to 58 or 60.
Bought $VXX Nov 2nd 58 calls for .62
Bought $UVXY Nov 2nd 95 calls for 2.09
These are a minor hedges against UVXY short calls. I don’t have many yet but will add more if it gets higher.
#ContangoETFs This is one of the few short options positions I’m managing in this correction…
I have a few #VXXGame positions, but other than that my shorts are mostly calls in commodity ETFs that aren’t as affected by the selloff.
Sold $SOXL Dec 85 put for 5.40.
Sold that for 1.60 more than I sold the Dec 90 put on Monday.
#VXXGame Not something I’ve done before,
Bought to open $VIX Oct 30th 16 puts for 1.30. A bet we’ll be back below 12 by the end of the month. I’ll add more if I can get the price down closer to 1.00.
#VXXGame Sold $UVXY Jan 2020 85 call for 14.15. Highest available strike.
#VXXgame I was early on this but sold $UVXY March 75 call for 7.25, adding to my position.
#VXXGame new higher strikes added in most expiries.
Had a come to Jesus moment at about 2 in the morning. I realized I needed to consider dumping a lot of positions. My account size has not budged much in the last couple months… money I’ve made in options has been sucked away by too many crappy stock positions. Other than AAPL and SQ, stock has not been good to me, all #PieTrades I have tried, rather Earnings repair or from scratch, have been huge dogs.
So I just dumped almost all stock positions.
Winners: $AAPL, $SQ
Losers: $FB, $BABA, $OLED, $MU, $OLED, $YY, $AMAT
Fortunately, other than $FB, the losers were all only 100 shares. AAPL and SQ were both 200. My FB losses were minimal since I have sold covered calls for a year on 100 shares, getting that lot down to 105.00 cost average. I then had more shares added in August earnings dump.
Now I can focus on strategies that I have more control over, rather than the whims of stock prices.
I’m still in options positions in $BOIL, $GUSH, $DUST. Also long calls in $PYPL (Jan 100’s, not doing well). Sticking with pre-earnings trades in $CAT, $JPM, and $MSFT. Long stock in $PVTL, since its so cheap. And a few #VXXGame short calls, and my long running long puts, the $VXX Jan 20 puts, which have lost so much potential in this volatile year.
Dumped underwater short puts in $RH. That symbol has simply killed me, I must quit it!
Also, closed $SPX Oct 12th 2825/2850/2960/2985 condor for breakeven at 4.15.
I’m looking to exit the #SuperChargers since short strikes have been breached, in $AMZN and $REGN.
#VXXGame Sold to Open $UVXY Jan 2019 70 calls for 4.25. Filled on the way up, not the top.