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Rolling: NVDA February 18th 242.5C/265P to March 18th 265*... short straddle for a 1.23 credit. Comments: I will probably regret playing through earnings, but throwing a smidge of caution to the wind by uninverting my short strangle and rolling it to the 265 short straddle in March. Total credits collected of 30.02 with break evens of 234.98 on the put side, 295.02 on the call. Will look to roll up untested side on approaching worthless or on side break even test. * -- Depicted at the 270 strike to avoid overlap with the February 18th 265 Short Put.
NASDAQ:NVDA
by NaughtyPines
The Week Ahead: TWTR, UAA, GPN, PFE Earnings; ARKK, XBI, XRTEarnings Announcements in Options Liquid Underlyings with >70 rank and >50% 30-Day Implied: TWTR (93 rank/90 30-day implied) (Thursday, before market open) UAA (80/68) (Friday, before market open) GPN (71/51) (Thursday, before market open) PFE (76/42) (Tuesday, before market open) Pictured here is a directionally neutral TWTR short strangle paying 1.34 on a buying power effect of 3.71 (on margin), 36.1% ROC at max; 18.1% at 50% max. It announces earnings on Thursday before market open, so look to put on a play in the waning hours of Wednesday's session if you want to take advantage of the ensuing volatility contraction post-announcement on Thursday. For those more of a defined risk bent, consider the February 18th 25/30/44/49 iron condor, paying 1.14 at the mid price as of Friday's close on buying power effect of 3.86, 29.5% ROC at max, 14.8% at 50% max with 2 x expected move break evens. UAA is probably small enough to short straddle/iron fly, with the February 18th 19.5 short straddle paying 2.42 on buying power of 3.93 (on margin), 61.6% ROC at max, 15.4% at 25% max. The risk one to make one iron fly would be a "stays within the expected move" sort of play with the February 18th 15.5/19.5/19.5/23.5, paying 2.03 on 1.97, 103% ROC at max; 25.8% ROC at 25% max. The GPN February 18th 130/160 short strangle was paying 2.97 on buying power of 14.97 as of Friday's close, 19.8% ROC at max, 9.9% at 50% max. The bid/ask is showing wide in after hours, and I don't particularly like the five wides where I want to pitch my tent. This is probably why I haven't bothered to play it before. Although PFE's 30-day is a bit <50%, I figured I'd price out a setup because of its high options liquidity. Unfortunately, it's not very compelling at the moment, with the 16 delta 48.5/58.5 in the February 18th contract paying a scant .89 on buying power of 6.12 as of Friday's close -- 14.5% ROC at max, 7.3% at 50% max. Exchange-Traded Funds With Ranks >50 and 30-Day IV >35%: ARKF (76/63) XBI (71/45) ARKK (70/67) ARKG (70/65) XRT (63/46) KWEB (63/54) SMH (60/41) GDX (50/45) Pick your Cathie Woods poison (ARKF, ARKK, ARKG), I guess. Otherwise, sell premium in XBI or (there's one I haven't seen in a while) ... XRT, although you're probably going to get more bang for your buck out of KWEB, with its higher 30-day. Broad Market Exchange-Traded Funds, Ordered By Implied Volatility Rank: QQQ (55/29) IWM (54/30) EFA (43/19) SPY (41/22) DIA (40/21)
NYSE:TWTR
by NaughtyPines
Rolling: XLK February 18th Short Strangles to March 18th 160... short straddle. Comments: Locking in some realized gains by rolling the 151/160 and the 157C/158P inverted out to the March 18th 160 short straddle. I had to do this in separate rolls, receiving 7.19 in credits for the roll of the 151/160 and 3.67 for the roll of the slightly inverted 157C/158P. I've collected a grand total of 22.07 in credits (11.035/contract) relative to a current setup value of 11.75 per contract, so am still slightly underwater in the position. As usual, will continue to do defensive adjustments as necessary to keep from getting too directional.
AMEX:XLK
by NaughtyPines
4
Rolling: IWM February 25th 197/198 Short Strangle to March 18th... 199 short straddle. Comments: As with my February 18th IWM tight short strangle, rolling out my February 25th to the March 18th 199 short straddle for a 4.24 credit. Total credits collected of 12.80 relative to the March 18th 199 short straddle price of 14.46, so also still slightly underwater. I'll continue naturally continue to do defensive adjustments as necessary to keep these setups from getting too directional.
AMEX:IWM
by NaughtyPines
4