The Day Ahead: GDXJ, FXI, EWZ, GDX Premium Selling
It's Friday, and the last trading day of September ... .
Here's what's at the top of my IV screener in the exchange-traded fund space:
TQQQ, IVR/IV 23.3/64.2%
GDXJ, 22.7/36.4% (2.52% yield)
FXI, 12.5/33.4% (2.26% yield)
EWZ, 11.1/31.9% (10.9% yield)
GDX, 26.0/31.5% (2.23% yield)
You'll notice that everything is still pretty much in the lower one-quarter of the IV range over the past 52 weeks, but there are a few instruments have popped above 30% 30-day. If you're big on divvies, EWZ stands out, but one potential drawback for some may be that it only distributes biannually in June and December.
In the broad market exchange-traded fund space:
QQQ, IVR/IV 22.2/22.3% with the shortest duration <16 delta strike that pays 1% of the strike price in the December 15th (the 321, paying 3.30 at the mid)
IWM, 21.6/20.8%, with the shortest duration <16 delta strike that pays 1% of the strike price in the December 15th (the 162, paying 1.72)
SPY, 22.1/17.1%, with the shortest duration <16 delta strike that pays 1% of the strike price in the January 19th contract (the 385, paying 3.91).
You can naturally opt for shorter duration and be more aggressive with your delta, with the trade-off being that you may end up being assigned shares more frequently or have to manage in-the-money's via roll, which is not the funnest way to manage a tested short put, depending how deep in-the-money it is. (I'm talking mostly about what I do strategically in my retirement account, which is short put/acquire/cover or "wheel").
Me Personally ... .
I pretty much mechanically put on the shortest duration <16 delta strikes paying around 1% in broad market (IWM, QQQ, SPY) on a weekly basis, so am going to do that today, assuming I don't already have rungs camped out where I'd want to pitch my tent with a secondary consideration being whether the contract represents a better strike than what I've currently got on.
And, in spite of the short term pain I'm experiencing in my attempt to acquire TLT shares at these levels, I'll probably also add in a rung (or two), since I have a maximal buying power that I want to devote to that position, and I'm not there yet. The probable result at the moment is that I will be assigned various lots at various strikes and will have to cover (i.e., sell call against) at various durations, some of which may be quite long-dated with my current highest strike at the 94 (in the November 17th) and the lowest at the 84 (in the December 15th). Naturally, were I to have followed my initial plan as to when I wanted to start picking up shares, (See Post Below), I would be "less red" ... .
Here's what's at the top of my IV screener in the exchange-traded fund space:
TQQQ, IVR/IV 23.3/64.2%
GDXJ, 22.7/36.4% (2.52% yield)
FXI, 12.5/33.4% (2.26% yield)
EWZ, 11.1/31.9% (10.9% yield)
GDX, 26.0/31.5% (2.23% yield)
You'll notice that everything is still pretty much in the lower one-quarter of the IV range over the past 52 weeks, but there are a few instruments have popped above 30% 30-day. If you're big on divvies, EWZ stands out, but one potential drawback for some may be that it only distributes biannually in June and December.
In the broad market exchange-traded fund space:
QQQ, IVR/IV 22.2/22.3% with the shortest duration <16 delta strike that pays 1% of the strike price in the December 15th (the 321, paying 3.30 at the mid)
IWM, 21.6/20.8%, with the shortest duration <16 delta strike that pays 1% of the strike price in the December 15th (the 162, paying 1.72)
SPY, 22.1/17.1%, with the shortest duration <16 delta strike that pays 1% of the strike price in the January 19th contract (the 385, paying 3.91).
You can naturally opt for shorter duration and be more aggressive with your delta, with the trade-off being that you may end up being assigned shares more frequently or have to manage in-the-money's via roll, which is not the funnest way to manage a tested short put, depending how deep in-the-money it is. (I'm talking mostly about what I do strategically in my retirement account, which is short put/acquire/cover or "wheel").
Me Personally ... .
I pretty much mechanically put on the shortest duration <16 delta strikes paying around 1% in broad market (IWM, QQQ, SPY) on a weekly basis, so am going to do that today, assuming I don't already have rungs camped out where I'd want to pitch my tent with a secondary consideration being whether the contract represents a better strike than what I've currently got on.
And, in spite of the short term pain I'm experiencing in my attempt to acquire TLT shares at these levels, I'll probably also add in a rung (or two), since I have a maximal buying power that I want to devote to that position, and I'm not there yet. The probable result at the moment is that I will be assigned various lots at various strikes and will have to cover (i.e., sell call against) at various durations, some of which may be quite long-dated with my current highest strike at the 94 (in the November 17th) and the lowest at the 84 (in the December 15th). Naturally, were I to have followed my initial plan as to when I wanted to start picking up shares, (See Post Below), I would be "less red" ... .
