Opening (IRA): QQQ July 21st 380 Short Put... for a 3.90 credit.
Comments: Starting to tip-toe into Q3 (July/August/September) contracts in broad market (IWM, SPY, QQQ). Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market.
As usual, will look to sell in shorter duration on weakness, assuming I can get in at strikes better than what I currently have on.
Shortput
Opening (IRA): SMH June 21st 180 Short Put... for a 2.01 credit.
Comments: High IVR/IV at 75.1/35.1. Targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the semiconductor ETF.
I may look to ladder out at intervals if premium remains decent.
Opening (IRA): SMH July 19th 165 Short Put... for a 1.69 credit.
Comments: High IVR/IV at 78.9/34.5. Adding a rung out in July to my SMH position, targeting the <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the semiconductor ETF.
Generally, will look to take profit on the short put at 50% max.
Opened (IRA): BITO May 17th 24 Short Put... for a 1.74 credit.
Comments: Adding a rung at strikes better than what I currently have on. Will generally look to take profit at 50% max or take assignment of shares should that occur and proceed to sell call against.
Metrics:
Buying Power Effect/Break Even/Cost Basis in Shares (If Assigned): 22.26
Max Profit: 1.74 ($174)
ROC %-age at Max: 7.82%
ROC %-age at 50% Max: 3.91%
Opening (IRA): IWM June 21st 180 Short Put... for a 1.82 credit.
Comments: Targeting the shortest duration <16 delta strike paying around 1% of the strike price in credit to emulate dollar cost averaging into the broad market. There is no July contract yet, but June is still paying at <16 delta ... .
Opening (IRA): BITO April 19th 26 Short Put... for a 1.23 credit.
Comments: Adding to my covered call position (See Post Below) on weakness, converting the covered call into a covered strangle (i.e., short put + stock + short call). I went with April, since May appeared to be shit illiquid at where I'd want to pitch my tent.
I'm fine with being assigned additional stock here at the 26 strike, since my cost basis in my shares is currently 27.54, with the cost basis in any shares assigned via the 26 at 24.77, although my preference would be just to take profit on the covered call aspect at 50% max and the short put at 50% max and move on.
Naturally, if I also manage to grab the April dividend, that would be additionally bueno.
As a standalone trade:
Break Even/Buying Power Effect/Cost Basis in Any Assigned Shares: 24.77
Max Profit: 1.23 ($123)
ROC at Max: 4.97%
ROC at 50% Max: 2.48%
Opening (IRA): TQQQ April 19th 52 Short Put... for a 1.54 credit.
Comments: Adding a short put component to my TQQQ covered call (See Post Below) here on weakness.
Metrics:
Break Even/Buying Power Effect/Resulting Cost Basis In Stock: 50.46
Max Profit: 1.53/$153
ROC at Max: 3.03%
ROC at 50% Max: 1.52%
Will generally look to take profit on the covered call component at 50% max and the short put component at 50% max.
Opening (IRA): IWM June 21st 169 Short Put... for a 1.63 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.
AMD is no NVDA don't fall into the hype!
AMD vs. NVDA:
When looking at these two stocks it's clear that NVDA is the clear winner and will maintain its pricing power over alternatives.
NVDA's Gross margin (75.97%) is +35.57% that of AMD (40.4%).
Although AMD has a low price to sales ratio this is likely due to them having a "Walmart sales model". High volume, low margin.
This is illustrated further when looking at both companies price to cash flow ratio. Despite recent surges in NVDA stock price this has been trending lower for NVDA and higher for AMD.
Most recent price to cash flow ratios: NVDA (54.1) and AMD (188.14). This helps visualize how much investors are paying for each company to generate cash flow.
I don't know about you but I am not willing to get in at these levels and although it is very risky I'm tempted to buy some puts against AMD. Yes they have excellent management and a large economic moat, it does not compare to that of NVDA and it should not be benefiting as greatly as it has recently by NVDA's recent performance.
AMD is now approaching the top of a channel that has been strong resistance for higher moves.
It seems like everyone in the market is un NASDAQ:AMD NASDAQ:AMD NASDAQ:AMD der the impression nothing ever falls. Although it would be bold and extremely risky to buy puts on any AI stock I believe it to be the correct one.
Curious to hear others opinions.
AMD:
www.tradingview.com
NVDA:
www.tradingview.com
Opening (IRA): TLT April 19th 90 Short Put... 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.
Opening (IRA): SPY June 21st 432 Short Put... 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.
Opening (IRA): QQQ June 21st 355 Short Put... 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.
Opening (IRA): SPY May 17th 448 Short Put... for a 4.75 credit.
Comments: Targeting the May option paying around 1% of the strike price in credit. This ends up being a little more aggressive from a delta standpoint than I usually go (~20 delta), but that's okay as I start to build up a position over time ... .
Naturally, weakness/higher IV would be better, but you can't have everything.
Rolling (IRA): TLT Nov 17th 92 to March 15th 92 Short Put... for a .97 credit.
Comments: Alas, this could not be meaningfully strike improved, so just rolling it out as is. The deeper the in-the-money it is, the farther out in time you have to go to get paid something decent ... . Collected .79 originally (See Post Below) plus the .97 here for a total of 1.76.
Rolling (IRA): TLT Nov 17th 94 to April 19th 94 Short Put... for an .85 credit.
Comments: Another that can't be meaningfully strike improved without paying a debit ... . Collected .75 originally (See Post Below). With the .85 here, 1.60 total.
And that ... ends the November contract housekeeping portion of our show. Unfortunately, I'll probably have to do some more of this in the December contract (ugh).