... for a 3.96 credit. Comments: Targeting the <16 delta strike in the shortest duration paying around 1% of the strike price in credit. Laddering out in longer and longer duration at intervals ... .
... for a 421.04 debit. Comments: Buying a Johnny one lot and selling a -75 call against to emulate a 25 delta short put, but with richer premium due to call side skew. As I start to go out in duration, monied short calls get less liquid, so I may return to just selling puts due to that. Just trying to get up and running after having flattened out at the end...
... for a 355.08 debit. Comments: Buying a one lot and selling a -75 delta call against to emulate the delta metrics of a 25 delta short put, but with a little richer premium due to call IV skew. I already have February and March setups on, so setting up my tent out in April here.
... for a 437.18 debit. Comments: Laddering these out as I would short puts, buying stock and selling the -75 monied call against to emulate a 25 delta short put with slightly better metrics than selling the 25 delta put outright due to IV skew. This setup (as well as short puts) allows me to make money in up, sideways, and -- to a certain extent -- down...
... for a 3.33 credit. Comments: High IVR/IV (104.5/60.1) earnings announcement play. 3.33 credit on buying power effect of 6.67; 49.9% ROC at max; 25.0% at 50% max. Delta/theta 2.68/4.65. So, far TSLA earnings was a small loser; the jury's still out on NFLX (but it's underwater) ... . Third time's the charm?
... for a 3.55 credit. Comments: Earnings announcement volatility contraction play. I ordinarily put these on right before earnings, but will probably space it out, so am putting it on today. Earnings will be announced on Wednesday, 1/24, after market close. Here, selling the 25 delta short option strikes and buying longs 10 strikes out from the shorts,...
... for a 1.00 credit. Comments: Continuing to ladder out at strikes at or below the cost basis of my current, longer-dated covered call. Going out to June here, since I have "rungs" on in April and May already.
... for a 183.65 debit. Comments: Doing things a little bit differently here, buying stock and selling the -75 delta call against to emulate the delta of a 25 delta short put, but with the ability to immediately defend the position with the short call, rather than waiting to roll the short put. First, the metrics: Max Profit: 3.35 ($335) Buying Power...
... for a 371.81 debit. Comments: Buying stock and selling the -75 call against to emulate a 25 delta put that is defense-ready via roll of the short call. This is temporarily in lieu of what I ordinarily do in broad market, which is to target the <16 delta strike paying around 1% of the strike in credit and slightly more aggressive delta-wise. This only makes...
... for a 442.57 debit. Comments: Buying stock and selling the -75 call against to emulate the delta of a 25 delta short put with the ability to defend the position immediately on test of the short call or the break even. Metrics: Buying Power Effect/Break Even/Cost Basis: 442.57 Max Profit: 6.43 ($643) ROC at Max: 1.45% ROC at 50% Max: .73% Will generally...
... for a 378.53 debit. Comments: Similar to my IWM February 16th 187 Monied Covered Call Post. (See Below). Metrics: Buying Power Effect/Break Even/Cost Basis: 378.53 Max Profit: 6.47 ($647) ROC as a Function of Buying Power Effect: 1.71% ROC at 50% Max: .85% Generally, take profit at 50% max; roll short call down or down and out defensively on test.
... for a 31.72 debit. Comments: Short delta hedge against a long delta portfolio. Buying the back -90 delta put and selling the front +30 to give me -60 delta/contract worth of hedge. This isn't a commentary or forecast of where the market goes from here, but rather in the nature of buying protection to keep my wife from yelling at me because her portfolio is...
... for a 36.91 debit. Comments: Re-establishing my broad market short delta hedge against a long delta portfolio. Buying the back month -90 delta put, and selling the front month +30. 36.91 cost basis with a 393.09 break even on a 49 wide. * -- Long Put Diagonal.
Comments: This started out as an October 20th 76 short put (See Post Below) and then proceeded to crater quite massively, resulting in early, random assignment of shares. In an attempt to get my cost basis immediately within earshot of where the underlying is currently trading, I went extremely long-dated and sold the Jan '25 77 for 7.05 against my one lot,...
... for a .42 credit. Comments: Down ... and out. Originally collected .95 (See Post Below); with the .42 here, 1.37 total.
... for a .97 credit. Comments: Alas, this could not be meaningfully strike improved, so just rolling it out as is. The deeper the in-the-money it is, the farther out in time you have to go to get paid something decent ... . Collected .79 originally (See Post Below) plus the .97 here for a total of 1.76.
... for an .85 credit. Comments: Another that can't be meaningfully strike improved without paying a debit ... . Collected .75 originally (See Post Below). With the .85 here, 1.60 total. And that ... ends the November contract housekeeping portion of our show. Unfortunately, I'll probably have to do some more of this in the December contract (ugh).
... for a .33 credit. Comments: Rolling down and out ... . Originally collected .89 for the 94 (See Post Below). With the credit received for the roll, I've collected a total of 1.22.