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...
Truth be told, I'm not a huge of fan of leveraged instruments, but when a $23 underlying has the potential to yield a $100 or more worth of credit, I'll briefly overlook the warts these instruments have as an "investment" tool ... . Here are the metrics for the play: Probability of Profit: 77% P50: 81% Max Profit: $127/contract at the mid (this is off hours...
Update on a upsloping trendline (blue) which acts as resistance On the 5 hour chart, we should have generated a sell signal. I still remain short via puyt spread 1x2s, as frost is no longer an issue. It appears the market is still digesting this from last week and should correct lower IMHO as physical supplies out of Brazil remain steady. Warehouse stocks in...
We look to place PUT or CALL Option at the confluence of Zones and Support & Resistance line for hourly expiry.
This is my method of trading Binary Options for the past 5 years trading only 30 minutes and hourly expiries. This method works 65 to 70% of the time and there are filters to further increase the winning %. We are not worried whether goes up or down. If it goes up, we SELL or place PUT options as it hits our SELL ZONES and buy areas where it drops and hits our BUY...
Hourly candle expiries.
This is my method of trading Binary Options for the past 5 years trading only 30 minutes and hourly expiries. This method works 65 to 70% of the time and there are filters to further increase the winning %. We are not worried whether goes up or down. If it goes up, we SELL or place PUT options as it hits our SELL ZONES and buy areas where it drops and hits our BUY...
Rolling my SPY June 10th 209/213 short call vertical out a couple of weeks and up a strike for a little more time and a smidgeon of strike improvement (again ... ). I got this filled for a $22/contract debit and then sold a 199/203 short put vertical in the same expiration for a $41/contract credit, so I'm net credit on the operation, so I've now got a SPY June...
Keeping with the short term engagement trade theme here while I wait for some volatility to sell premium in something ... anything ... (currently, there is no fairly liquid underlying with an implied volatility rank of greater than 70 to work). Metrics: Probability of Profit: 58% P50: 77% Max Profit: $310/contract Max Loss/Buying Power Effect:...
Layering on a bit more bread on my butter while VIX>15 ... . This is about as full a boat as I like to have (not <25% in cash), so I may not be posting many new trade ideas here for a bit; most of them will be closing trades. I know ... boring ... . Metrics: Probability of Profit: 58% P50: 65% Max Profit: $102/contract Max Loss/Buying Power Effect:...
Going where the premium is at ... . I already have a setup in GDX in the same expiry, so I'm layering another on small here ... . Metrics: Probability of Profit: 69% P50: 81% Max Profit: $93/contract Max Loss/Buying Power Effect: Undefined/~$236/contract Delta: =8.29/contract Theta: 2.98/contract
With low volatility having drained premium not only out of the broader market, but individual underlyings as well, I continue to look at VIX and VXX derivatives to go "long volatility" in lieu of opting for low vol strategies like debit spreads, calendars, and diagonals. In this particular case, I'm opting to use a long call butterfly given its high risk/return...