... for a .71/contract credit. Notes: Highest background implied on my exchange-traded fund board with 30-day at 40.2%, expiry-specific at 41.6%. I've already got some January stuck out there, so am basically laddering out a smidge by selling the 16 delta out in the February monthly. ROC: 2.13% as a function of notional risk at max; 10.65% annualized at max.
HIGHLY LIQUID OPTIONS SINGLE NAME EARNINGS (LISTED CHRONOLOGICALLY IN ORDER OF ANNOUNCEMENT AND SCREENED FOR >50% 30-DAY IMPLIED): HAL (13/61/13.9%),* Tuesday, before market open NFLX (25/50/11.3%), Tuesday, after market close AA (18/69/15.9%), Wednesday, after market close UAL (13/64/14.8%), Wednesday, after market close From a bang for your buck perspective:...
... for a .70/contract credit. Notes: As with my BA trade (See Post Below), targeting some options highly liquid single name for premium selling. Here, it's the beaten-down Intel, with the short put lining up nicely below support. 30-day at 44.8%, expiry-specific at 41.6%. I generally like to sell premium in single name at >50% implied, but occasionally...
... for a 1.08/contract credit. Notes: I already have some January on, and there is no February currently, so going out to March with 30-day still >35% at 36.5% and expiry specific at 38.4%. As with my other IRA short put trades, I'm fine with getting assigned, selling call against, particularly since it has a small dividend to pay you while you wait to exit any...
$ENG PT 7.50-8 and higher looking for better entry Multi-leg: 1) Calls 7.50 Jan 15th 2021 Return +167% 2) Calls 7.50 Feb 19th 2021 Return +185%
... for a 2.80 credit. Notes: Targeting the short put strike in April paying at least 1% of the strike price in credit (See Post Below). Roll up intraexpiry at 50% max with > 45 days until expiry; pull off on approaching worthless and/or sell call against if assigned.
... for a 2.10 credit. Notes: Opening a short put nearest the 16 delta in the broad market instrument having the highest 30-day implied on the board. Here, it's IWM with 30-day at 27.5% and expiry-specific at 29.5%. ROC: 1.25% as a function of notional risk at max; 10.14% annualized at max. For smaller accounts, consider going spread with the short leg camped...
... for a 1.00/contract credit. Notes: A continuation of my TLT covered calls. (See Post Below). Rolling out at >50% max to the strike paying around 1% of the strike price, which is the 163 in February, currently valued at 1.66. I'm fine with being called away, since my last acquisition was around 110, and I think the buying power could be better utilized in...
... for a 1.93/contract credit. Notes: Selling premium in the broad market exchange-traded fund with the highest 30-day implied, which is IWM/RUT. ROC: 1.2% at max; 9.7% annualized. Will take profit on approaching worthless or roll for duration/sell call against if in the money at expiry.
... for a 5.10 credit. Metrics: Max Profit: $510 Max Loss: $4490 Break Even: 3334.90 Delta/Theta: 2.6/6.75 ROC: 11.4% at max; 5.7 at 50% max; 83.22% annualized at max; 41.61 at 50% max. Probability of Profit: 87% Notes: A 10%-er in the expiry nearest 45 days in duration, opened late in the session. For smaller accounts, consider selling a short put vertical...
... for a 2.19 credit. Notes: Targeting the short put strike in September paying at least 1% of the strike price in credit. Roll up intraexpiry at 50% max with > 45 days until expiry; pull off on approaching worthless and/or sell call against if assigned.
With two shortened market weeks in a row for Christmas and New Year's, I probably won't be doing a ton here, but figured I'd do a post for how exchange-traded funds are looking in the waning weeks of 2020 ... . EXCHANGE-TRADED FUNDS ORDERED BY PERCENTAGE THE AT-THE-MONEY SHORT STRADDLE NEAREST 45 DAYS IS PAYING AS A FUNCTION OF STOCK PRICE: SLV (32/46/11.9%) GDX...
Walmart is bouncing off the 50 MA, if it holds, this be a good entry for debit spread. 147-153 call debit spread be a good play on this idea. Follow my free trades on our fb group www.facebook.com
EARNINGS: No options liquid underlyings announcing earnings this week that meet my criteria for a volatility contraction play, although ORCL (24/31) and WORK (2/33) both announce and could be played in some other way. EXCHANGE-TRADED FUNDS RANKED BY THE PERCENTAGE THE JANUARY AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE: GDXJ...
Metrics: Max Profit: 337.50 Max Loss: 287.50 Break Even: 1.1977 Notes: A bearish assumption directional shot at resistance. Alternatively, FXE January 15th 111/113 long put vertical, 1.05 max profit, .95 debit/max loss, break even 112.05 vs. 112.13 spot (although it's trading above that pre-market).
... for a 5.00 credit. Notes: Selling 45 days 'til expiry premium in the broad market instrument with highest 30-day implied. Manage at 50% max, 2 x credit received.
... for a .52/contract credit. Notes: The scaled down version of the 10%-er in SPX (See Post Below). Manage winners via close or roll at 50% max; losers at two times credit received.
... for a 5.00 credit. Notes: A ten-percenter on this weakness in the weekly nearest 45 days until expiry. 30 day at 29.4%; expiry-specific at 27.9%. Will manage at 50% max; 2 x credit received. To a certain extent, betting on post-election volatility crush.