... for a 3.95 credit. Comments: Part of a longer-dated strategy to emulate dollar cost averaging into the market without (ideally) taking on stock. Selling the strike paying at least 1% of the strike price in credit in the shortest duration monthly where the strike is 16 delta or less.
... for a 101.55 credit. Comments: Closing here .45 short of max, since both strikes have converged at around 95 delta (the short put +94 delta, the long put -95 delta) so that it's no longer a net delta short hedge. My cost basis was 95.96 (See Post Below), so closing out here results in a profit of 5.59 ($559). Will re-erect a broad market hedge here shortly.
... 81.22C/103.22P for a 1.25 credit. Comments: Rolling this out a touch early due to lack of extrinsic in the short put, which ostensibly increases assignment risk. I improved the short put by a strike, but kept the inversion the same -- a 22 wide for which I've collected 19.50 (See Post Below) plus 1.25 or 20.75, with my resulting cost basis in any stock I...
... for a 2.50 credit. Comments: Sold premium right at the close in the expiry nearest 45 days to emulate dollar cost averaging into small caps. Holistically, I've been using IWM for shorter duration trades (~45 days until expiry) and SPY for longer duration ones (since it doesn't pay as well as a function of buying power effect), and then coupling that with...
... for a 1.07 debit. Comments: Taking a short position in /CL in the February expiry with this spread at the double top. $930 max profit; $1070 max loss. Will look to money, take, run at 110% of what I put it on for.
I haven't done one of these in quite some time, but thought I'd do one over this long holiday weekend. Earnings: I looked at a number of these for next week (there are quite a few) and have culled things down to the most liquid options underlyings, ideally with implied volatility rank >70% and 30-day greater than 50%. Only NFLX really fits that bill, even...
... for an .82 debit. Comments: Opened this for a 1.48 credit (See Post Below). Closing it out here manually for around 45% of max. The implied has come in quite a bit; it was 76.1% when I put it on and has now contracted to 68.5% -- at the low end of its 52-week range. Will look to re-up if implied comes up off its lows.
... for a 1.11 credit. Comments: The short put aspect of a long put diagonal, the back month long of which is out in June at the 570 strike (See Post Below). Cost basis in the setup is now 95.96 with a 474.04 break even. The entire setup (i.e., the February 4th 468 short put/June 570 long put) is intended as a short delta hedge against a long delta portfolio,...
... for a 2.09 credit. Comments: Emulating dollar cost averaging into small caps via a 17 delta short put in the contract nearest 45 days until expiry. Currently, the highest 30-day implied volatility broad market exchange-traded fund on the board with 30-day at 27.0% (although QQQ comes in a close second at 26.5%).
... for a 2.02 credit. Comments: Straightening up my longer-dated SPY setup, where I'm basically emulating dollar cost averaging into the broad market without actually taking a position in stock. With the February 18th 416 at greater than 50% max, rolling it out to May to the strike paying at least 1% of the strike price in credit, after which I'll roll it up...
... for a 2.51 credit. Comments: More defense as this underlying continues to implode. Total credits collected of 16.99 (See Post Below) plus the 2.51 here equals 19.50. The resulting inversion is, unfortunately, 22 strikes wide -- 2.50 greater than the total of credits I've collected. This means that I won't be able to scratch it out during this cycle...
... for a 45.41 credit. Comments: A late IRA house keeping post. This is the last of my reopening trades. My cost basis in my shares was 43.05 (See Post Below) with a bunch of scalping around my covered call. A 2.36 ($236) winner that I'm glad to see the back of, since we have earnings in 11 days, and I'd rather not have single name risk in my IRA.
... for a 1.43 credit. Comments: The short put aspect of a long put diagonal, the back month of which is in the June monthly at the 570 strike. I originally paid 98.50 to put this on, (See Post Below), so my cost basis is now 98.50 - 1.43 = 97.07 with an upside break even of the long put strike (570) - 97.07 or 472.93. I'm using this as a short delta hedge...
... for a 1.18 credit. Comments: More IRA housekeeping. Here, rolling for duration for a realized gain and to the strike paying at least 1% of the strike price in credit. I've collected 2.35 (See Post Below) + 1.18 or 3.53 so far.
... for a 3.00 credit. Comments: Further IRA housecleaning ... . Here, rolling up the 348 intraexpiry for a realized gain to the strike paying at least 1% of the strike price in credit. I've collected a total of 16.07 (See Post Below) + 3.00 or 19.07 ($1907) so far.
... for a .51 debit. Comments: Cleaning up my IRA and starting to deploy buying power for the New Year. I collected a total of 19.00 in credits with rolls (See Post Below); closing it out for .51 here results in total realized gains of 18.49. ($1849).
... for a 1.74 credit. Comments: Yowsa. This continues to implode, so continuing to manage it defensively ... . As of my last roll, I'd collected 15.25 in credits. (See Post Below). With this roll, I've collected a total of 16.99 for what is now an inverted 15-wide: the 89.22C/104.22P with a downside break even of 104.22 - 16.99 or 87.23 relative to today's...
... for a 2.53 credit. Comments: High 30-day implied at 45.3%. 2.53 credit on buying power effect of 10.55 (on margin). 24.0% ROC at max; 12.0% ROC at 50% max. Will look to take profit at 50% max; manage sides on approaching worthless/side test.