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Premiumselling

Opening (IRA): SPY December 15th 403 Short Put... for a 4.07 credit. Comments: My weekly broad market short put in the shortest duration contract where the <16 delta is paying around 1% of the strike price in credit to emulate dollar cost averaging into the market without actually being in stock. My basic options here are (a) do nothing, waiting for higher IV to sell premium; (b) continue to sell premium in shorter duration, but at strikes that are closer to at-the-money; (c) continue to sell premium in shorter duration, but at given delta strikes; or (d) scrounge around in the market for premium in other exchange-traded funds or single name that aren't so "weak sauce." I'm opting for (a) here, but may also scrounge around ... . Examples: Shorter Duration, But Closer to At-The-Money: SPY September 1st (42 Days Until Expiry) 447.5 (38 delta), 4.48 credit (around 1% of strike price in credit). Shorter Duration, But at a Given Delta: SPY September 1st (42 Days Until Expiry) 436 (20 delta), 2.34 credit (around .54% of strike price in credit).
AMEX:SPYLong
by NaughtyPines
Opening (IRA): XBI October 20th 76 Short PutComments: Looking to sell the around the 30 delta here in the October monthly, which is more aggressive than I usually go, but am fine with taking assignment, selling call against if it comes to that. Currently, the strike is bid 1.45/ask 1.65 with a 1.55 mid, so will look to get a fill "in that neighborhood." Just looking for some "engagement" in this broad market, low IV environment with my standard go-to's (IWM, QQQ, SPY) at 17.8%, 18.8%, and (ugh) 13.6%, respectively for their 30-days.
AMEX:XBILong
by NaughtyPines
The Day Ahead: TQQQ, GDXJ, USO, GDX, FXI Premium SellingIt's Friday ... the 13th. Here's what's shakin' in exchange-traded fund premium selling ... . Top 5 Options Liquid ETF's Ranked by 30-Day IV: TQQQ 22.9 IVR/60.4 IV GDXJ 23.6/38.9 USO 46.4/38.8 GDX 26.0/33.6 FXI 14.8/31.4 Ideally, you want to have IVR at >50 and IV at >35% in ETF premium-selling land, but you can't have everything in this market ... . Broad Market Shortest Duration <16 Delta Strike Paying 1% of the Strike Price In Credit: IWM, the January 19th 151, paying 1.58 at the mid (14 delta) QQQ, the January 19th 325, paying 3.44 at the mid (15 delta) SPY, the February 16th 385, paying 3.93 at the mid (15 delta) Me, Personally Currently, I still have quite a bit of broad market on in fourth quarter expiries, with the majority being in the December monthly and the end-of-quarter December 29th. (I have one IWM straggler on in the November monthly). I've begun to deploy out a smidge into the 2024 first quarter), but may just sit on my hands this week depending on whether I can get in at strikes better than what I currently have on. Because of that, I may dabble small with TQQQ as an engagement trade (and to see what all the fuss is about). Pictured here is a 16 delta short put at the 30 strike in the December 15th monthly paying 1.01 at the mid which I'll do as a starter position and then work it from there as I wait on my other positions. I also already have a GDXJ covered call on (See Post Below), but may add a short put to give me a little extra sumthin' sumthin' on that play.
NASDAQ:TQQQ
by NaughtyPines
The Day Ahead: GDXJ, FXI, EWZ, GDX Premium SellingIt's Friday, and the last trading day of September ... . Here's what's at the top of my IV screener in the exchange-traded fund space: TQQQ, IVR/IV 23.3/64.2% GDXJ, 22.7/36.4% (2.52% yield) FXI, 12.5/33.4% (2.26% yield) EWZ, 11.1/31.9% (10.9% yield) GDX, 26.0/31.5% (2.23% yield) You'll notice that everything is still pretty much in the lower one-quarter of the IV range over the past 52 weeks, but there are a few instruments have popped above 30% 30-day. If you're big on divvies, EWZ stands out, but one potential drawback for some may be that it only distributes biannually in June and December. In the broad market exchange-traded fund space: QQQ, IVR/IV 22.2/22.3% with the shortest duration <16 delta strike that pays 1% of the strike price in the December 15th (the 321, paying 3.30 at the mid) IWM, 21.6/20.8%, with the shortest duration <16 delta strike that pays 1% of the strike price in the December 15th (the 162, paying 1.72) SPY, 22.1/17.1%, with the shortest duration <16 delta strike that pays 1% of the strike price in the January 19th contract (the 385, paying 3.91). You can naturally opt for shorter duration and be more aggressive with your delta, with the trade-off being that you may end up being assigned shares more frequently or have to manage in-the-money's via roll, which is not the funnest way to manage a tested short put, depending how deep in-the-money it is. (I'm talking mostly about what I do strategically in my retirement account, which is short put/acquire/cover or "wheel"). Me Personally ... . I pretty much mechanically put on the shortest duration <16 delta strikes paying around 1% in broad market (IWM, QQQ, SPY) on a weekly basis, so am going to do that today, assuming I don't already have rungs camped out where I'd want to pitch my tent with a secondary consideration being whether the contract represents a better strike than what I've currently got on. And, in spite of the short term pain I'm experiencing in my attempt to acquire TLT shares at these levels, I'll probably also add in a rung (or two), since I have a maximal buying power that I want to devote to that position, and I'm not there yet. The probable result at the moment is that I will be assigned various lots at various strikes and will have to cover (i.e., sell call against) at various durations, some of which may be quite long-dated with my current highest strike at the 94 (in the November 17th) and the lowest at the 84 (in the December 15th). Naturally, were I to have followed my initial plan as to when I wanted to start picking up shares, (See Post Below), I would be "less red" ... .
NASDAQ:TLTLong
by NaughtyPines
The Day Ahead: IWM, QQQ, TQQQ, GDXJ, FXI, EWZIt's Friday and a Triple Witching to boot! Well, IV isn't great here pretty much across the board for us premium sellers. Nevertheless, if you must play (and some of us gotta), here's what's shakin' ... . Broad Market QQQ, .8 IVR, 17.8% 30-day IV, with the shortest duration in which the <16 delta is paying greater than 1% of the strike price: December 29th. IWM, .7 IVR, 16.8% 30-day, with the shortest duration in which the <16 delta is paying greater than 1% of the strike price: December 29th. SPY, .9 IVR, 12.9% 30-day, with the shortest duration in which the <16 delta is paying greater than 1%: (Ugh), March (there is no February monthly yet). Exchange-Traded Funds Ideally, you want to hit these when IVR >50 and IV is >35%, but IVR is at rock bottom, with most skimming the very low end of their 52-week ranges. Sometimes, you just have to settle for what the market gives you. TQQQ, 8.5 IVR; 52.6% 30-day. GDXJ, .6 IVR; 31.6% 30-day. FXI, 7.9 IVR; 29.4% 30-day. EWZ, 2.8 IVR; 26.7% 30-day. Fortunately, all of these are <$45/share, so you will be small in terms of buying power effect with the natural exception of the leveraged TQQQ, which your broker may require be cash secured on margin (which naturally makes it less sexy in that environment from an ROC %-age perspective). Stay small and don't get all of your powder wet.
AMEX:IWMLong
by NaughtyPines