About meFocusing on IVR (Implied Volatility Rank), I look to sell premium, focusing primarily on indices (SPY/DIA/IWM) and treasuries (TLT/TBT) using short vertical spreads, iron condors, and short strangles.
... for a 1.06/contract credit.
Max Profit: $106/contract
Max Loss: $194/contract
Break Evens: 245.94/273.06
Notes: Replacing an iron condor I closed earlier to keep my risk constant throughout the cycle and given this high volatility environment. It also has the effect of adding a smidge of short delta to my core position, which has ...
... for a .90/contract credit (.30/$30 profit/contract).
You know the drill -- mixing and matching profitable call side with profitable put side from iron condors put on over time. Will replace this setup with another iron condor in the same expiry; keeping my risk/buying power effect constant throughout the cycle given the fact that background implied ...
... for a 1.07/contract credit.
Max Profit: $107/contract
Max Loss: $193/contract
Break Evens: 248.93/278.07
Notes: With 38 days to go in the January cycle, layering on a smidge of short delta to my slightly long delta SPY core position, which -- as I note below -- can't be adjusted all that much. As usual, I'll look to mix and ...
... for a 1.08/contract credit.
Adding to my January cycle QQQ core position after stripping off some units earlier (See Post Below). Since the overall position remains fairly delta neutral, I'm not looking to add delta with this trade, so am basically going with a neutral setup.
With the previous close costing a .71 debit and this open paying 1.08, my January ...
... for a .71/contract debit (.37/$38 profit per contract).
Taking some small profit here on my QQQ January cycle core position by mixing and matching profitable put side with profitable call side of iron condors I've put on over the past several weeks.
I'll look to replace this setup with another fairly delta neutral setup in the January cycle, since we've ...
Visually, this looks like a bit of a mess ... .
As of NY open, I was left with the following spreads left over from iron condors I had put on over time and/or rolled toward current price to delta balance:
A Dec 271/275 short put vertical.
3 x Dec 267/270 short put verticals.
A Dec 280/283 short call vertical.
2 x Dec 277/281 short call verticals.
I first pulled ...
Personally, I'm not doing a ton here beyond looking at cleaning up remaining December cycle setups and evaluating whether there are poo piles that should be looked at for the taking of tax loss in the margin account before year's end. Nevertheless, here's an outline of what's potentially playable in the coming week ... .
ADBE (81/49) announces earnings on ...
... for a 1.05/contract credit.
Max Profit: $105/contract
Max Loss: $195/contract
Break Evens: 154.95/178.05
Notes: Layering on some more in the January cycle. With the other two iron condors I've already put on in January, my position scratch point is 3.26/contract. Will look to mix and match profitable put side with ...
Earnings With >70 Rank/>50 Implied:
No underlyings with highly liquid options with earnings announcements in the next week. With single names with earnings announcements in the rear view mirror, we're looking at earnings starting up again in the January cycle; I'd rather just play those closer to the announcement, rather than get caught up in a volatility ...
... for a 2.62/contract credit.
Max Profit on Setup: $138/contract
Max Loss on Setup: $262/contract
Debit Paid to Spread Width Ratio: 65.5%
Break Even: 18.62 vs. 18.60 spot
Notes: Taking a bullish assumption directional shot in OIH with plenty of time to work out/reduce cost basis ... . Will look at taking profit at 50% max.
Closing the remainder of my December cycle XOP core position for a 4.61/contract debit.
Although I'm closing these particular spreads at a loss, I'm green for the December cycle in XOP, given my scratch point of 5.15, resulting in a .54 ($54)/contract profit. This isn't very stellar, but I'll take it given the header oil took off of 2018 highs ... ...
... for a 1.04/contract credit.
Max Profit: $104/contract
Max Loss: $196/contract
Break Evens: 155.96/180.04
Notes: Layering on in the January cycle (See Post Below for "the first layer."). I'll treat the position as a single setup for take profit purposes and mix and match profitable put side with profitable call side to ...
... for a .43/contract credit.
Notes: Selling premium buying power free (because I have a put butterfly of the same width on; see Post Below) and to pick up some short delta in my SPY core position running into December opex. It probably only makes sense as an adjustment trade and not as a stand-alone ... .
... for a 1.17/contract credit.
Max Profit: $117/contract
Max Loss/Buying Power Effect: $183/contract
Break Evens: 174.17/150.83
Notes: Starting the January cycle run in the broad market exchange-traded fund with the highest background implied volatility. Collecting greater than one-third the width of the wings.
... for a .40/contract credit.
Notes: This will finish my clean up of my XOP December cycle core position. (See Post Below for all the shenanigans). I've now got "unit balance" (same on put side as on call side), as well as a smaller number of units in total.
My scratch point in the position for the December cycle is 5.15/contract, and the net delta of the ...
... for a 1.12/contract debit (1.04 profit/contract).
Notes: Further clean-up of my XOP core position in December. Now that I've taken off the 38/41 short call vertical and this iron condor, what remains is two short put verticals, one at 32/35, the other at 30/35. The 32/35 was left over from an iron condor I put on previously, the 30/35 from an iron fly, the ...
EARNINGS WITH A RANK >70/IMPLIED >50:
CRM (81/52): Announces on Tuesday after market close. The pictured defined risk setup pays a greater than a one-third of the wing width 1.89 with break evens between the expected and one standard deevy.
ANF (68/86): Announces Thursday before market open. The Dec 21st 16 short straddle was paying 3.04 as of Friday close; ...