Just updating the spaghetti-works that is my SPY IRA position. In a nutshell, a January 15th 262 covered straddle with short call diagonal overwrites. I also have a "few" short puts on (See, for example, Post Below), so this doesn't represent the entire position, but is set out primarily to show management of the short call diagonal overwrites. The primary goal...
THE WEEK AHEAD: EARNINGS ANNOUNCEMENT VOLATILITY CONTRACTION PLAYS: M (41/103/September 18.7%): Announces Wednesday before market open. Potential Plays: September 18th 13 short straddle, paying 1.30 as of Friday close, .33 at 25% max. September 18th 5/7/7/9 iron fly, paying 1.07 as of Friday close, .27 at 25% max. Look to take profit at 25% max. CLDR...
... for a 2.49 credit. Metrics: Max Profit: $249/contract Max Loss: $251/contract Break Evens: 14.51/19.49 Delta/Theta (Currently): -8.91/3.12 Notes: Couldn't post this yesterday due to the number of "Update" posts I did ... . High implied at 87.5% with earnings to be announced today after the close. A classic risk one to make one iron fly which I'll look to...
... for a 2.90/contract credit. Notes: Plain Jane, directionally neutral, 16 delta short strangle in the small caps, which have the highest background 30-day on the board at 29.3% with expiry-specific implied at 31.3%. Looking to take off at 50% max or otherwise manage on side test or side approaching worthless ... . Defined Risk Alternatives: IWM October...
... with a cost basis of 13.44. Notes: I've been working this one for a very long time (See Post Below), chipping away at cost basis.
... with a cost basis of 55.80. Notes: As with my CCL trade, updating this setup so that it appears farther up in the queue. A continuation of a monied covered call play. (See Post Below).
... with a cost basis of 47.77. Notes: "Knock. Knock. Knock. Housekeeping!" Another housekeeping post, here, of a broken short strangle on which I was assigned long shares. (See Post Below).
... with a cost basis of 23.98. Notes: A continuation of a cruise lines trade I may have put on just a touch too early. (See Post Below). Just doing some housekeeping here by moving some of my poo piles to the top of the ideas queue, so that I don't have to scroll through the entirety of my ideas to find them.
... with a cost basis of 31.93. Notes: Another broken trade in which I took on shares. (See Post Below). Some work needs to be done on improving the 27 short call ... .
... with a scratch point of 36.99 and a 258.01 break even. Notes: To say that this setup hasn't worked out as a standalone trade so far is kind of an understatement (See Post Below). However, it still is short delta, so I'm keeping it on as a hedge against long delta positions.
... with a cost basis of 65.80. Notes: More housekeeping ... . (See Post Below). This particular position will need some adjustment with the short call aspects at -315 delta, the short put aspects at +50 (i.e., it's net 265 short delta).
... for a 2.82 credit. Notes: Sold the short put nearest 16 delta in the expiry nearest 45 days until expiry. Running until expiry at which time it'll either (a) expire worthless or (b) be in-the-money, and I'll be assigned shares. If assigned shares, I'll proceed to sell call against at the strike nearest break even, which here is 292.18.
... for a 2.44/contract credit. Notes: With price trading in between the 32 and 33 strikes, went skinny short strangle in lieu of short straddle. Since it's almost a straddle, I'll look to take profit at 25% max. I've gone ahead and shown defined risk wings for an iron fly/skinny iron condor setup on the chart -- the September 18th 28/32/33/37, which was paying...
... for a 3.64/contract credit. Notes: Going Plain Jane directionally neutral in the highest volatility broad market exchange-traded fund on the board. Looking to take profit at 50% max or manage on side approaching worthless/break even test.
EARNINGS: GPS (37/82/17.0%) is really the only earnings announcement that interests me from a volatility contraction perspective. Pictured here is a September 18th skinny short strangle, which was paying 2.03 as of Friday close. EXCHANGE-TRADED FUNDS SCREENED FOR IMPLIED >35% AND WHERE THE OCTOBER AT-THE-MONEY SHORT STRADDLE IS PAYING >10% OF STOCK PRICE: SLV...
... for a 1.92 credit. Notes: High 30-day implied here at 60.5. Going with a directionally neutral camped out at the 17 delta's. Hopefully, less of a roller coaster this go 'round.
... for a 5.96 credit. Notes: A risk one to make one stays-within-the-expected move setup betting that treasuries don't move a ton in the next 59 days or so. Since it's "almost a straddle," will look to take profit at 25% max.
EARNINGS: NVDA (31/53/12.2%), announces Wednesday after market close. WMT (29/33/7.0%), announces Tuesday before market open. TGT (28/37/8.3%), announces Wednesday before market open. HD (19/35/7.2%), announces Tuesday before market open. BABA (43/45/10.5%), announces Thursday before market open. Pictured here is an NVDA September 18th 400/410/540/550 iron...