This is over earnings. The 90/95 bear call spread is above the 100 sma on the monthly. The 60/55 bull put spread is below the 100/200 sma on the daily and 100sma on the weekly Simply expecting NOT a huge gap on earnings and allow the IV to fizzle out on this one. Since we are getting $1.00+ on a $5 margin, this is 20% ROR :) Going for 1.02 of credit :-)
IWM continued to fall today, so I decided to look on the call side to turn this into an Iron Condor. Why? 1. Condors do not increase margin over a spread 2. IWM has been range bound 3. Large cushion past 2 resistance points 4. Additional Credit recieved Opened Feb 2nd 236/238 IC for a 0.22 cent credit.
Hi guys, this week I found better opportunies buying options rather selling ( IV drop made options cheaper to buy) So the strategy is basically the contrarian of my Tari Condor ( Have a look and subscribe for free!), and as you can see this trade is 4 weeks and 6% spread. The sold strikes are 132 and 117, the bought strikes are almost ATM, it depends on your...
... for a 1.60 credit; scratch at 16.50 versus total setup value of 15.65 (i.e., currently up 16.50 - 15.65 = .85/$85). Notes: A delta under hedge in the first expiry in which the at-the-money short straddle is paying greater than 10% of the underlying. Net delta leans short.
... for a 3.00 debit; 3.50 ($350) realized profit; scratch at 14.40. Notes: Taking off the remaining risk in the February cycle. Net delta remains long, which I'm fine with, since exogenous risk lies to the call side. And while I took some nice profit here, I'm still slightly underwater relative to the total extrinsic left of 15.45 or so.
... for a .70 debit, 1.00 ($100 profit). Notes: A bit of subtractive delta balancing. Scratch at 14.10.
... to February 14th 62.5/63.5 short call vertical for fees only (i.e., the credit received was the same as the cost to close out the January spread, so it's a wash from that standpoint). Notes: As with the other spread I just extended duration on, this may need a little more time to work out and/or for me to reduce cost basis.
... for a .20 debit, 1.00 ($100) profit. Notes: Out of the put side in the January cycle, leaving some call side to manage running into expiry. Scratch at 19.80. I would note that /CL rank/implied isn't great here (4.3/26), so the obvious best case scenario is that I not have to roll out in this low volatility environment.
Since IV is high on tesla I'm putting on BOLD play. This looks like low risk high reward. 270/275/360/365 Iron Condor Exp Dec 20th. 3 spreads. Credit per spread was 1.43 5 point wide. Credit collected is $429 this will be my max loss. 30 delta call and 16 delta put I want to take my profits at around 30% max credit which will be $130 profit. This looks...
TSLA looks to be trending lower as it continues toward its destination I plan to capture some profits using an iron condor. IV is really high at around 50 180/185/240/245 $150/350 Profit/Risk June 21 EXP Profit Target to be expected by June 10-14 Profit Target is $80 max loss is $160 This is a journal entry and not trading advice.
Visually, this looks like a bit of a mess ... . As of NY open, I was left with the following spreads left over from iron condors I had put on over time and/or rolled toward current price to delta balance: A Dec 271/275 short put vertical. 3 x Dec 267/270 short put verticals. A Dec 280/283 short call vertical. 2 x Dec 277/281 short call verticals. I first pulled...
People have frequently mentioned to me that they can't make iron condors work for them, primarily because a single broken setup can undo a long string of profitable trades. This, of course, is a true statement if absolutely nothing is done to attempt to repair these broken trades and get them back to at least scratch or, ideally, into profit. It's all a question...
With the CBOE Volatility Index at 13-ish here, there is nary a premium selling play in the market ... . Naturally, that can quickly change, but in the mean time, it's "housekeeping time." "Housekeeping time" is a largely boring affair: 1. Look at Setups for Delta Balancing. If you've been reading any of my posts, you'll notice that I largely concentrate on...
More housekeeping ... . Taking advantage of this down move in gold to roll the call side of this June 17th iron condor for cheaper than I could do so at the top of GLD's arc at nearly 124. I did the roll for a $28/contract debit. Here's the complicated part: In rolling the 117/120 out to July, I was left with an unpaired short put vertical in June. I didn't...
5) Look at Setups in Expiries in the Friday Immediately Following the Announcement or the Friday Thereafter. I mechanically set these up in options that expire the week following the announcement, as it gives me a little more time for the setup to work out. 6) Avoid ADR's and/or Underlyings That Aren't Scheduled to Announce on a Particular Date/Time. Next week,...
Traditionally, AA's earnings announcement marks the beginning of the earnings season for me, and it announces earnings on Monday after market close. Naturally, there are tons of plays you can make, but, unfortunately, not all are ideal for premium selling or, for that matter, other options strategies that rely on a firm directional assumption (like Super...
(Cont'd from Part I). I then look at selling an oppositional side (in this case, the short put "wing") (1) for at least .10 more in credit than it cost me to roll the tested side; (2) with the highest probability of profit I can do that for; and (3) that does not result in an "inverted" iron condor (trust me, you do not want to try to work an inverted iron...
(I have to do this in two posts since I'm verbose, and can't fit it into one ... ). Now that March FOMC is over, I'm ready to wait back in ... in a bit. Before Draghi, I rolled my March 18th expiry SPY short call verticals out to the April 1st expiry to buy some more time, selling short put credit spreads to finance a slight strike improvement of those to...