Trades

Catching up on posting from the last 7 days…

TODAY (Monday)
#CoveredCallCampaign
Sold $AAPL Aug 24th 202.5 #CoveredCalls for 7.00. This replaces the Aug 17th 202.5 calls I closed last week for 7.40, to avoid being called away on the ex-div date. I’m rolling ITM calls after earnings trade got breached.
Sold $SQ Aug 24th 76 call for 1.25, and Aug 31st 76 calls for 1.23

#SyntheticCoveredCalls
Sold $PYPL Aug 31st 90 calls for 1.10. A roll-up from Aug 24th 87.5 calls stopped last week.

#PieTrades
Sold $MU Aug 24th 53 covered call for .85. #PieTrades

LAST WEEK
#Rolling #StrangleRoll $TSLA Aug 17th 332.5 calls to Aug 17th 332.5/335 strangles for .65 credit. Will roll soon to avoid early assignment.

#Earnings Bought $YELP Aug 10th 38.5 #LongStraddles for 4.94. Sold the calls next day for 9.95. This trade usually works on YELP.

Stopped $FB Aug 24th 187.5 covered calls for 3.85. Rolled to Aug 31st 180/195 strangles for 3.83. Looks like I got stopped at the top. #CoveredCallCampaign.

#PieTrades Rolled $AMAT Aug 10th 46.5 covered call to Aug 17th 46.5 for .30 credit.

#VXXGame Closed $VXX Sep 21st 50 call for .46. Sold for 5.65 on April 17th.

A few trades

#LEAPs BTC $SQ July 20th 71 #SyntheticCoveredCalls for .15. Sold for 1.35 in June.

#CoveredCallCampaign BTC $BABA July 20th 202.5 #CoveredCall for .21. Sold for 2.05 in June

#VXXGame Sold $VXX Dec 50 call for 3.50

SVXY #VXXGame Sold SVXY 07/20/2018…

SVXY #VXXGame

Sold SVXY 07/20/2018 13.50 Covered Calls @ 0.21
Sold SVXY 07/27/2018 13.50 Covered Calls @ 0.30

You could do better than this right now

Volatility and SPX rallies

I trade VIX and VXX based on extremes I see in the price channels. I’ll start by sharing a few trades and more on strategy later.

Closed trades
STO VXX Jul13 38/39 BeCS @ .38 x 10. Bot back @ .10
Bot VIX Jul11 16P @ 1.62. Sold @ 2.02 x2
Bot VIX Jul11 15P @ .90. Sold @ 1.15 x2
Bot VXX Jul13 35P @ 1.02. Sold @ 1.45

Open trades
Rolled VIX Jul18 15/20 BuCS bot @ 1.12 to create a Jul18 15/13 BeCS for 1.90 credit – directional bias changed
Bot SPX Jul9 2780c @ 1.75 x2 in anticipation of the rally continuing thru today and perhaps Monday.

#vxxgame

Moving a lot to cash

I’m starting to take a lot of trades off and putting fewer new ones on. I am doing this for these reasons:

1. The #SPXcampaign has not been working well in 2018. It was my core strategy starting in January 2015 and worked well through 2016. In 2017, I got crushed a little too much on the upside, and now this year’s whipsaw has been too difficult. I’m going flat in $SPX. Currently I only have a couple of OTM call spreads which I’ll be closing a bit cheaper. I will look to start fresh in the coming weeks or months after I assess the strategy.

2. I have been long a few tech stocks and selling calls. I was also rolling into strangles when calls got breached. In the last week the puts have been getting hit. So I’m keeping the stock for now but have closed most puts. I will sell covered calls if we move higher, or stop myself out if we move much lower or go into more serious correction.

3. I’m not feeling positive about the market. Of course, me typing this paragraph will likely mean today is the bottom! But the market action, the tariff fears, and other reasons for 2018 volatility do not seem to be abating. Plus record low unemployment is often what precedes a recession, and the nation’s debt and deficits are flying to new highs. I by no means am certain of a crash, and I wouldn’t be including this in my decision if it weren’t for #4.

4. My family is spending a month in Japan from late July to late August (my wife is from there, so we’ll be visiting family and touring). The NYSE opens at 10:30pm Tokyo time… I intend to keep trading lightly, but do not want to be going through volatility with lots of positions and having to stay up all night.

I hope to reset my mind, catch up on bookkeeping (both trading and household), and build out this website a bit more.

So, to summarize: I am closing out SPX, TQQQ
I’m keeping stock in AAPL, BABA, SQ, and FB, all with stops set in not too much lower than current prices. BABA is a bit underwater but the other three are nicely in profit.
I have stock also in these which are currently struggling: #PieTrades in MU and AMAT, and broken earnings trade in OLED. I’ll let these sit, sell calls, and dump them if they can’t recover soon.
The only #VXXGame trades I have are long puts in $VXX, a trade that would have worked every year for the past 9 (except maybe 2011), but is NOT working in 2018. Also long $SVXY stock and short a small amount of $VXX stock. I have way OTM long calls on UVXY and VXX, so I’m prepared to sell volatility should it get expensive.
Still short some puts in RH, YY, and GUSH, which I’ll allow to decay.
Long LEAP calls in PYPL and SQ which were cheap, so no reason to close. I will sell calls against these.

And that’s it! Let me know any questions you have about positions you were following.

#spycraft

Final trade & expirations

#Earnings #Rolling I have not managed $OLED well at all since getting slammed on earnings. I’m actually not too far in the hole so sticking with 1-lots:
BTC $OLED June 15th 115 put for 21.75. Sold for 19.00 last month.
STO July 6th 100 put for 7.60
STO July 20th 110 put for 16.80.

#OptionsExpiration
Only one winning expiration:
$GUSH 45 call, sold for 1.05 in April, #ContangoETFs

These expired as losses:
$SPX long June 15th 2825/2850 call spreads, bought for .75, avg price, #SPXCampaign
$VXX long 30 puts, bought for 1.17, avg price
$VXX long 25 put, bought for .21
$AMBA long 50 call, bought for 3.90, #LongCalls

Also, hedges expiring (partially replaced with #VXXGame trades yesterday):
$UVXY 60 calls, bought for .69, avg price

VXX game

#VXXGame These were all traded yesterday, forgot to post…

Closed $UVXY July 20th 20 calls for .28. Sold for 1.20 last month.
Closed $UVXY Sept 20 call for .74. Sold for 2.75 on May 3rd.
Closed $UVXY Jan 2019 70 calls for .36. Sold for 6.52, average price, on Feb 5th and 8th.
Closed $UVXY Jan 2020 59 call for .90. Sold for 4.80 on April 6th.

Also, bought these highest strikes as future hedges against sell volatility:
BTO UVXY Sept 59 calls for .15, adding to my position
BTO $VXX Sept 105 call for .25
BTO $VXX July 20th 90 calls for .18, adding to my position