... for a 192.24 debit. Comments: Opened this in late Friday's session as it floated to the top of my IV screener with IVR/IV at 106/39. Sold the -75 delta call against 100 delta of long stock, with a resulting cost basis of 192.24/share. This is to emulate a 25 delta short put and to take advantage of call side IV skew while having "built-in" position defense...
... for a 60.31 debit. Comments: For lack of something better to do, looking to grab the March dividend here, which should be in the vicinity of .60/share. The top 5, options liquid dividend-yielding ETF's are: EWZ (10.90%) (paid twice a year in June and December); EFA (5.27%) (paid twice a year in June and December); XLE (3.78%) (paid in March, June,...
... for a 1.08 credit. Comments: Laddering out on weakness, targeting the strike paying around 1% of the strike price in credit at or below the cost basis of the shares I've currently got.
... for a 1.54 credit. Comments: Adding a short put component to my TQQQ covered call (See Post Below) here on weakness. Metrics: Break Even/Buying Power Effect/Resulting Cost Basis In Stock: 50.46 Max Profit: 1.53/$153 ROC at Max: 3.03% ROC at 50% Max: 1.52% Will generally look to take profit on the covered call component at 50% max and the short put...
... for a 85.43 debit. Comments: Looking to attempt to grab the March dividend, which has been averaging around .80 over the past four distributions. Metrics: Buying Power Effect/Break Even/Cost Basis in Shares: 85.43 Max Profit: 2.57 ($257) ROC at Max (ex. dividend): 3.01% ROC at Max (w/dividend): 3.94% (assuming an .80 distribution) ROC at 50% Max (ex....
... for a 1.23 credit. Comments: Adding to my covered call position (See Post Below) on weakness, converting the covered call into a covered strangle (i.e., short put + stock + short call). I went with April, since May appeared to be shit illiquid at where I'd want to pitch my tent. I'm fine with being assigned additional stock here at the 26 strike, since my...
... for a .98 credit. Comments: Laddering out at intervals at strikes between 85 and 82, assuming they're paying. This is naturally longer-dated than most will want to go, but is part of a TLT position made up of covered calls (stock + short call) and short puts, so that I'm getting paid for (a) short call premium; (b) dividends; and (c) short put premium over...
... for a 4.95 credit. Comments: A Q3 starter position ... . Targeting the shortest duration <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market. July isn't paying, so going out to August. Will look to add rungs in shorter duration, assuming I can get in at strikes better than what I've got on...
... for a 1.82 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 broad market. There is no July contract yet, but June is still paying at <16 delta ... .
... for a 3.90 credit. Comments: Starting to tip-toe into Q3 (July/August/September) contracts in broad market (IWM, SPY, QQQ). Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market. As usual, will look to sell in shorter duration on weakness, assuming I can get in at strikes...
... for a 22.83 debit. Comments: Selling the -75 call against a one lot here out in June where I have covered calls at the 29, 27, and now 24 strikes. 1.17 max on BPE of 22.83; 5.12% ROC at max; 2.56% at 50% max. Going monied CC here in lieu of an equivalently delta'd short put to take advantage of call side IV skew (39.6% on the call side; 29.18% on the put...
... for a 1.63 credit. Comments: Laddering out at intervals, targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market. Will start looking at adding in shorter duration if I can get in at strikes better than what I currently have on.
... for a 4.09 credit. Comments: Finally, a bit of weakness ... . Targeting the shortest duration <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging in without actually being in stock.
... for a 19.90 debit. Comments: Looking to establish a position in FXI over time on weakness via monied covered calls to emulate selling a 25 delta short put, but with built-in downside defense via the short call and to take advantage of call side IV skew. The underlying also has a dividend that pays out in June and December, but with somewhat variable...
... for a 27.54 debit. Comments: High IVR/IV at 97.9/81.9% and a monthly dividend to take advantage of. However, the monthly dividend has varied widely -- with the last two distributions paying .36 (February 8th) and .73 (March 8th) with an annual dividend of 8.72 (.73 average monthly) (31.7% annualized as a function of current price). I'm primarily looking to...
... for a 64.51 debit. Comments: IV of 32.3%. Selling the -75 call against a one lot of stock to emulate a 25 delta short put with built-in short call defense. Metrics: Cost Basis in Stock/Break Even/BPE: 64.51/share Max Profit: 1.49 ROC at Max: 2.31% ROC at 50% max: 1.15%
... for a 2.07 credit. Comments: 30-day IV at 27.8%. (Higher would be better, but you can't have everything). Collecting 1/3rd of the width of the wings in credit. 2.07 credit on BPE of 3.93; 52.7% ROC at max; 26.3% at 50% max. As usual, will generally look to take profit at 50% max; adjust sides on side test. This is probably my last trade in the March...
... for a 3.45 credit. Comments: Earnings play with the announcement today after close. 3.45 credit on buying power of 6.55; 52.6% ROC at max; 26.3% at 50% max. I'm basically looking for two things here: (1) IV contraction post-earnings; and (2) price to stay within the expected move, which the options market is pricing in to be about +/- 43 handles from...