... 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 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...
... for a 1.74 credit. Comments: Back to short puts here, targeting the <16 delta strike paying around 1% of the strike price in credit. Just gradually building a position here at intervals.
... for a 1.10 credit. Comments: Although I have a long-dated covered call on in TLT, starting to ladder out some short put at intervals that would result in an improvement of my cost basis in the covered call were I to be assigned shares. Targeting the strike that's paying around 1% of the strike price in credit.
... for a 3.52 credit. Comments: Somewhat of a "revenge trade" here after exiting my earnings trade for a small loser. 3.52 credit on BPE of 6.48; 54.3% ROC at max; 27.2% at 50% max. Generally, will look to take profit at 50% max/adjust untested side on side test.
... for a 47.75 debit. Comments: Dabbling a smidge in the leveraged ETF due to its high IV (56.3% 30-day). Selling the -75 delta call against a one lot to emulate a 25 delta short put, but with "built-in" defense via the short call, which can be rolled down, out, or down and out to reduce cost basis and setup break even. As usual with the sort of thing, will...
... for a 397.94 debit. Comments: Re-establishing here in the Q's with a +25 delta monied covered call to take advantage of call side skew. Will look to add at intervals, dispersing risk across expiries, and generally take profit at 50% max and/or roll out the short call on test. Metrics: Max Profit: 7.06 ($706) ROC %-age at Max/50% Max: 1.77% at max; .89 at...
... for a 172.42 debit. Comments: While I'm waiting for a July contract to open up in broad market instruments (IWM, QQQ, SPY), shopping around the ETF space for premium. Relative to broad market, SMH IV isn't horrible (the 30-day is currently at 29.3%). Selling the -75 delta call against long stock, to emulate a 25 delta short put and to take advantage of...
... for a 171.23 debit. Comments: Buying stock and selling the -75 call against to emulate the delta metrics of a 25 delta put. This setup gives me a slight bump in premium over selling the 25 delta put due to call IV skew, along with built-in position defense with the short call. Laddering out over time after flattening out at the end of the year. I'll...
... for an 81.63 debit. Comments: 32.1% 30-Day IV. My general preference for ETF IV is >35%, but there isn't much currently there in my ETF screener, and I'm already in a GDX position: TQQQ (52.3%); USO (38.1%); GDXJ (35.0%). Buying a one lot and selling the -75 delta call against to emulate a 25 delta short put with "built-in" defense of the position via...
... for a 4.40 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 3.60 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. I've already got March, April, and May rungs on, so going out to June here.
... for a 179.87 debit. Comments: Doing another one of these in March with a short call strike and cost basis better than what I currently have on at the 186. Selling the -75 delta call, buying a Johnny one lot to emulate a 25 delta short put in order to take advantage of call side IV skew. 3.13 max profit on BPE of 179.87; 1.74% ROC at max; .87% at 50%...
... for a 74.27 debit. Comments: Adding a "rung" to my XBI position here .... . Selling the -75 delta call and buying a one lot to emulate a 25 short put to take advantage of IV skew in calls (40.2% at the 77 strike on the call side; 33.0% on the put). 2.73 max profit on BPE of 74.27; 3.68% ROC as a function of BPE at max; 1.84% at 50% max.
... for a 148.83 debit. Comments: Buying a one lot and selling a -78 delta call against to emulate a +22 delta short put, while taking some advantage of IV skew to the call side (54.32% at the 155 call versus 46.24% at the same put strike). Max profit of 6.17 on BPE of 148.83; 4.15% ROC at max; 2.07% at 50% max. It is entirely possible that I will regret this...
... for a 181.70 debit. Comments: Buying stock and selling the -75 call again to emulate a 25 delta short put that is "defense ready" via roll of the short call. 4.30 ($430) max on buying power effect of 181.70; 2.37% ROC at max; 1.18% at 50% max. Will generally look to take profit at 50% max and/or roll out the short call on price's traverse of the short call...