My timing could have been somewhat better on this at the sub-12 dip, but better late than never ... . Metrics: Bought 100 Shares at 13.25 Sold Oct 21st 14 call Whole Enchilada: 12.30 db Max Profit: $170 (if called away at 14) ROC: 13.8% Notes: I promised myself after closing out my XME short put that I wouldn't be dipping into any more miners ... . Just...
Mostly hand-sitting here, but figured I'd take advantage of the increased volatility in the petro sector by selling a bit of premium in XOP, since its IV has popped here. Metrics: Probability of Profit: 52% Max Profit: 2.46 ($256)/contract Max Loss: 2.54 ($254)/contract Break Evens: 37.46/32.54 Notes: I'll look to take this off at 25% max profit ... .
It was either this little fella or X ... . Bought 100 Shares at 4.60 Sold the Oct 21st 5 call Filled for a 4.29 debit Max Profit: $71 (if called away at 5) ROC: 16.6%
BROAD MARKET INSTRUMENT PREMIUM SELLING Post-Brexit vote in late June, when VIX spiked to >25 (signalling a premium selling opportunity in broad market instruments like SPY/SPX and RUT/IWM in the July expiry), there has been but one >15 spike to >20 in mid-September that allowed for some premium selling in the October monthlies, which have since come off in...
I haven't done many of these in the past, but I'm beginning to warm up to them, particular with instruments that wouldn't ordinarily yield jack diddly squat with a traditional iron condor setup. Here's how this iron fly compares to an iron condor with similar break evens (it would be a Nov 18th 43/46/48/51):* Probability of Profit: Fly: 52% Condor: 52% Max...
Taking advantage of this "little" dip here to initiate a covered call in this little, high implied volatility bugger (at some point, I'll make the move to "quality" ... ). Metrics: Bought Shares at 4.73 Sold Oct 21st 5 call Whole Package: 4.40 Max Profit: $60 ROC: 13.6%
Sometimes life just plain ass gets in the way of your trading ... . Starting October 1st, my "number's up" for jury duty for the entire month of October. I may be called to serve any time during this period, sit for a lengthy period of time in a room, and then be excused because the parties have reached a last minute agreement or I may have to sit through an...
Here, I'm looking to sell a touch of premium in an underlying that has both high implied volatility rank (99.6%) and high background implied volatility (99.2%). Metrics: Probability of Profit: 70% Max Profit: $85/contract Buying Power Effect: Varies by Broker.* Break Even: 10.15 Notes: I'll shoot to take this off at 50% max profit. However, I could also see...
Let's start with the metrics for this setup: Buy shares at 24.54 Sell Nov 18th 22.5 short call Whole Package/BE/Cost Basis: 20.40 db per 100 shares/contract (20.40 is also your cost basis and break even) Max Profit: $210 per 100 shares/contract (if called away at 22.50) ROC: 10.3% Now, ordinarily, I like to do "OTM" (i.e., out-of-the money) covered calls where...
I'm working a lot of these out of a "weenie" account, so a lot of these are going to be "weenie" sub-$10 plays ... . Metrics: Bought 100 Shares at 3.30 Sold Oct 21st 4 call Whole Package: 2.95 db (2.95/share is my cost basis) Max Profit: $105 (if called away at $4) ROC: 35.6%
Shooting for an .08 ($8) debit fill here. It's a lotto trade (which I hardly ever do), but I think that the drug will ultimately not be approved. The potential profit is $795/contract, but that's if the stock goes to "0." Additionally, it will only "play out" if there is news prior to expiry. Otherwise, it'll stay way up here.
Looks down to the 140 area for a test. However as long as the orange or blue trends hold, the upwards trend is still intact IMHO. short call spreads above 165 in Dec or January might be a good idea. I would buy any puts as downside seems limited for the moment and option volatility might decline during a sell off diminishing returns on long option strategies....
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 ... .