Get started

Shortput

Opening: ARKK March 18th 59.22 Short Put... for a 1.83 credit. Comments: Here, I'm basically treating the deep ITM 103.22 short put as stock with the 81.22 short call making that aspect of the setup -- the 103.22P/81.22C -- functionally a March 18th 81.22 covered call. I don't want to widen the inverted strangle further by rolling down the short call, since that would be the functional equivalent of selling a call below my cost basis, which I generally don't like to do. In essence, I'm converting this into a March 18th 59.22/81.22 covered strangle with the 103.22P standing in as my stock. I've collected a total of 22.58 in credits which makes my cost basis in my "synthetic stock" 103.22 - 22.58 or 80.64. The downside of doing this is that this makes the setup more net delta long, which will make for additional discomfort if this POS can't find a bottom somewhere.
AMEX:ARKKLong
by NaughtyPines
2
Opened (IRA): IWM March 4th 185 Short Put... 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 a longer-dated short delta hedge or hedges. (See, e.g., Post Below). I'm still net delta long, just not as long as I would be were I to be all short put without some kind of short delta aspect.
AMEX:IWMLong
by NaughtyPines
2
Rolling (IRA): SPY February 18th 416 to May 20th 365... 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 intraexpiry or out for duration at 50% max to the strike paying at least 1% in credit, assuming that strike is <16 delta. I now have March, April, and May rungs on at will continue to either roll or add at intervals with the preference being to add on weakness and higher volatility (>20 VIX/>20 30-day implied). I've rolled this a bunch of times, collecting a total of 21.89 (See Post Below) plus the credit received here of 2.02 for a total of 23.91 relative to the 3.80 or so the May 365 is currently paying, so have realized gains of 23.91 - 3.80 = 20.11 ($2011) so far.
AMEX:SPYLong
by NaughtyPines
2
$ARKF SHORT PUT for Jan21, high PoP 20% profit #ark #optionsAny kind of ETF naked PUTs are my favorite at high IVR. My choice for today: ARK Fintech Innovation ETF Reasons: - high reward for Jan21 monthly expiry (mangeable with rolling) -> collecting credit - RSI is already oversold - breakeven point is far - PUT strike at 0.618 fib Max profit: $210 Probability of Profit: 89% Profit Target relative to my Buying Power: 20% Req. Buy Power: $1035 (max loss without management before expiry, no way to let this happen!) Tasty IVR: 73 (very high) Expiry: 38 days SETUP : NAKED PUT for $ARKF, because IVR is high, for 0.7cr * Sell 3 $ARKF JAN21'35 PUT Management : ROLLING if daily candle is closing below of BE. Take profit strategy : 70% of max.profit in this case with auto buy order at 0.2db Of course I'll not wait until expiry in any case! If you liked this article, check my other ideas. Anyway: HIT THE LIKE BUTTON BELOW , and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview !
AMEX:ARKFLong
by TanukiTrade
Opened: EWZ February 18th 24 Short Put... for a .53 credit. Comments: Adding a short put element to what was a long call diagonal (June 17th 25 Long Call/February 18th 32 Short Call). Up to this point, my cost basis in the diagonal alone was 5.45, implying a 30.45 break even relative to where EWZ is currently trading at 27.90. I wanted to bring the setup break even closer to where EWZ is currently trading, and selling this put results in a net cost basis of 4.92 with a break even of the long call strike (25) + 4.92 or 29.92. I'll look to roll the short strangle (short put/short call) as a unit to reduce cost basis further, assuming we don't get a bodice ripper up to >32, at which point the diagonal should begin to converge on max.
AMEX:EWZLong
by NaughtyPines
Opening (Margin): CHWY January 21st 42 Short Put... for a 1.00 credit. Comments: Selling some 16 delta premium in CHWY post-earnings in the implied volatility afterglow (30-day is still currently at 66.9%). I considered short strangling it, but there's some skew to the call side with wonky five wides, so am just going bullish assumption on it instead. Delta/theta: 15.79/3.03; 1.00 max profit on buying power effect of 4.22 (on margin): 23.7% ROC as a function of buying power effect; 11.8% ROC at 50% max.
NYSE:CHWYLong
by NaughtyPines
18
Rolling (IRA): SPY February 18th 362 to 416... for a 2.65 credit. Comments: Part of a longer-dated premium selling strategy in broad market ... . With the 362 at 50% max (there's only 1.46 left in it), mechanically rolling it up to the strike paying at least 1% of the strike price in credit, so long as it's less than 16 delta and greater than 45 days' duration. (The 416's at the 14 delta strike and the February monthly is of 71 days duration). Total credits collected: 19.24 (See Post Below) + 2.65 = 21.89 ($2189) relative to a current short put value of 4.14, so I've realized gains of 21.89 - 4.14 or 17.75 ($1775) so far.
AMEX:SPYLong
by NaughtyPines
3
Rolling (IRA): SPY February 18th 335 to 362... for a 1.21 credit. Comments: Adjusting a rung of my longer-dated premium-selling strategy in SPY* to lock in realized gains and take advantage of this higher volatility environment. I've collected a total of 18.03 (See Post Below) + 1.21 or 19.24 with rolls with this contract relative to a current short put value of 3.66, so have realized gains of 19.24 - 3.66 or 15.58 ($1558) so far. Will generally look to roll at 50% max. * -- The basic strategy is to sell the shortest duration premium in SPY at 16 delta or less that is paying at least 1% of the strike price in credit and to roll intraexpiry (as I did here) or from month to month at 50% max (i.e., when the short put reaches 50% profit).
AMEX:SPY
by NaughtyPines