It's Friday ... the 13th. Here's what's shakin' in exchange-traded fund premium selling ... . Top 5 Options Liquid ETF's Ranked by 30-Day IV: TQQQ 22.9 IVR/60.4 IV GDXJ 23.6/38.9 USO 46.4/38.8 GDX 26.0/33.6 FXI 14.8/31.4 Ideally, you want to have IVR at >50 and IV at >35% in ETF premium-selling land, but you can't have everything in this market ... . Broad...
... for a 1.32 credit. Comments: Targeting the shortest duration <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the semiconductor ETF. I have no current position on in SMH, so will look to add at intervals should IV remain decent (it's currently at 28.7%, but at the low end of its 52-week range).
... for a 3.21 credit. Comments: Rounding out fourth quarter rungs, targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market.
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... for a 2.31 credit. Comments: High IV at 56.7%. Targeting the <16 strike paying around 1% of the strike price in credit to emulate dollar cost averaging into Tesla without actually being in the stock. I'll consider adding if I can get in at better strikes than this starter position. Earnings are on October 18th, so will be looking to "play through."
... for a 1.26 credit. Comments: Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the semiconductor exchange-traded fund. Here, I'm adding a rung at a better strike in the November monthly than what I currently have on.
It's Friday, and the last trading day of September ... . Here's what's at the top of my IV screener in the exchange-traded fund space: TQQQ, IVR/IV 23.3/64.2% GDXJ, 22.7/36.4% (2.52% yield) FXI, 12.5/33.4% (2.26% yield) EWZ, 11.1/31.9% (10.9% yield) GDX, 26.0/31.5% (2.23% yield) You'll notice that everything is still pretty much in the lower one-quarter of the...
... for an .88 credit. Comments: Targeting the strike paying around 1% of the strike price in credit in the shortest duration contract around 45 days until expiration, looking to pick up shares via assignment in this general area of weakness.
... for a .95 credit. Comments: Squeezing in a short put in the November expiry at the 90 strike. Here, I'm actually looking to pick up shares, so am being more aggressive than I would ordinarily be, with the 90 camped out at the 27 delta.
... for a .77 credit. Comments: Targeting the shortest duration <16 delta short puts paying around 1% of the strike price in credit to emulate dollar cost averaging into the biotech exchange-traded fund.
It's Friday and a Triple Witching to boot! Well, IV isn't great here pretty much across the board for us premium sellers. Nevertheless, if you must play (and some of us gotta), here's what's shakin' ... . Broad Market QQQ, .8 IVR, 17.8% 30-day IV, with the shortest duration in which the <16 delta is paying greater than 1% of the strike price: December...
... for a 3.76 credit. Comments: Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market. Going out to January here, because I already have quite a few rungs on in the Nov and Dec monthlies, as well as the Dec 29th. I may still try to squeeze some rungs in November and December if...
... for a 1.56 credit. Comments: Rounding out rungs in the last of the available expiries in the 4th quarter, targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market using short puts. If I had nothing on in IWM, I'd probably go shorter duration (e.g., November 17th) where the 165 is...
Comments: Targeting the <16 strike in the shortest duration paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market. Filled the November 17th 165 for 1.71 credit; the December 15th 159, for 1.60. Will generally look to take profit at 50% max or roll down and out for duration and a credit if tested.
... for a 3.28 credit. Comments: My weekly broad market short put in the shortest duration contract where the <16 delta is paying around 1% of the strike price in credit to emulate dollar cost averaging into the market without actually being in stock.
... for a .96 credit. Comments: Adding on weakness, targeting the strike paying around 1% of the strike price in credit in the contract nearest 45 days duration. This is more aggressive than I usually do, since it's at the 30 delta, but I'm looking to pick up shares at or around these lows if at all possible. Because of this, I'll look to run these right up...
Comments: Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market. Laddering out in successive expiries to disperse risk over time. Will generally look to take profit at 50% max or roll down and out for a credit if tested. December 15th 391: 3.96 credit December 29th 384: 3.86 credit
It's Fryyyydayyyy ... (which is when I tend to do all my "stuff"). Well, unless you've been hiding under a rock (no judgment here), you'll know that premium-selling in broad market isn't very good here, with IWM IVR/IV at 12.3/19.7%, QQQ at 9.1/20.1%, and SPY at 6.8/14.4%. That sub-25 IVR is telling you that broad market IV is in the bottom quarter of its...