Bought shares at 6.07; sold the Sept 30th 6.5 call; filled entire package for a 5.78 db; max profit $72 (if called away at 6.5) (12.5% ROC).
I figured I'd clean up this setup a little bit on the chart to show what's going on with this trade a little more clearly, since we're running into opex, and I'll have to do something with it here shortly. I also for mapping out what I'm going to do if price does certain things relative to my cost basis and original stock purchase price. The trade originally...
Bought shares at 6.04; sold the Sept 30th 7 call; filled the entire package for a 5.85 db; $115 max profit if called away at 7 (19.7% ROC).
With VIX finally breaking 15 here, I need to strike while the iron is hot ... . The instrument of choice -- IWM, the broad index exchange-traded fund (as compared to SPY, DIA, QQQ) with the highest implied volatility currently ... . Metrics: Probability of Profit: 52% Max Profit: $127/contract Max Loss/Buying Power Effect: $273/contract Break Evens:...
Here, I'm just trying to suck in a little bit of premium without being all in on the stock ... . (Filled for a .64 ($64)/contract credit). As usual, I'm selling the strike nearest 30 delta. I'm fine with getting assigned at 13 (after which I'd proceed to sell calls against), but would naturally prefer cheaper, so will keep an eye out for opportunities to roll...
Bought shares at 7.50; sold the Sept 30th 8 call; filled for a 6.93 db; max profit $107 (if called away at 8) (15.4% ROC). Not to jinx it, but it's highly likely that I will be unhappy with one or more of these little fellas that I put on today ... .
My "guess" is that AMD will not hold onto this level (I briefly considered going "monied" with the short call with the covered call setup, selling the 7 strike instead of the 8). However. implied volatility is fairly high here (64.6%), and my mechanical approach to most of these setups is basically to "ditch the guessing" and pull the trigger; price will go where...
As I've posted several times before, my preference generally is to (1) sell premium in broad-based index instruments (e.g., SPY, IWM, QQQ, SPX, RUT) if VIX > 15; and (2) if VIX < 15, look for premium selling opportunities in non-index exchange traded funds with implied volatility of >35% and/or individual underlyings with implied volatility of >50% and where the...
I generally don't like to ride broncos right out of the stall, but I might make an exception here ... . This is because the Oct 21st 45 short put is currently bid 3.00, ask 3.80 (mid 3.40). That's $340 in premium for a one contract 58 and change underlying ... . Alternatives: Sept 16th 45 short put: bid .95, ask 1.11, mid 1.03. Oct 21st 40 short put: bid...
Metrics: Buy Shares at 4.62 Sell Oct 21st 5 call Whole Package: 4.36 Max Profit: $64 (if called away at 5) ROC: 14.7% Notes: The ROC metrics are good here; the chart is not. The underlying is at highs, so it might be beneficial to wait for a pullback to initiate a play. By the same token, there is room to the upside (albeit small to next ZigZag indicated...
This is a bit pricier than I'd like to go with a covered call, particular in biotech, which can implode on you dramatically if there is a clinical trial failure ... . Nevertheless, here's the metrics on this little fella: Buy 100 Shares at 16.42 Sell Oct 21st 17.5 call 13.77 db at the mid Max Profit: $373 ROC: 27.1% Notes: There may be premium to be sold on the...
Metrics: Buy 100 Shares at 3.23 Sell Oct 21st 4 call 2.83 db at the mid (i.e., 2.83 is your cost basis in the shares) Max Profit: $117 (if called away at 4) ROC: 41% ROC Notes: A good spot to initiate this here, given a bit of horizontal support.
Selling the 47.5 put naked here below support as a potential precursor to a covered call, which I got filled for a .73 ($73)/contract credit. Basically, my thought process here is that I might want to covered call TEVA, but don't want to buy shares here at 53 (lower is better). I'll naturally watch price and roll the short put down and out for a credit should it...
There is more than one way to skin a cat. But some ways are more buying power efficient than others ... . Here, I'm looking at a covered call in X. The implied volatility is >50%, so I can get a bit of premium on the call side to reduce my cost basis in any stock I buy here. For example, if I buy shares at 20.38, and sell the Sept 30th 20.5 call against (for...
AMRN at 3.33/share; sell Sept 16th 3.5 call; 2.75 db; max profit $75 (21.4% ROC). FOLD at 7.00/share; sell Sept 16th 7 call; 6.20 debit; max profit $80 (12.9% ROC). ARRY at 4.54/share; sell Sept 16th 5 call; 4.19 db; max profit $81 (19.3% ROC). Notes: Preliminary/off hours. I would also note I haven't looked at these guys' pipelines (they're all biotech) or...
... for a .91 ($91) credit ... . Here are the metrics: Probability of Profit: 76% Max Profit: $91/contract Max Loss/Buying Power Effect: Undefined/$175/contract Break Even: 16.59 Notes: I'll look to take this off at 50% max profit. Not interested in being married to a position with this cluster of a company ... .
With the short put wing of this Brexit wracked setup approaching worthless, I closed it today for a .04 ($4)/contract debit. I then rolled the short call side out to the August 19th expiry to the 121/126 for a .50 ($50)/contract credit and (inadvertently) sold an overlapping short put spread against it for a .25 ($25)/contract credit. (This is what happens when...
1. Closed the July 22nd 2020/2030 short put vertical for a .15 debit, as it's near worthless and done its job. 2. Rolled the July 22nd 2110/2120 call side out a week to the July 29th 2115/2125 and slight strike improvement for a .75 debit. The improvement isn't much, but I like to do these improvements small and over time until I get the required movement to...