Rolling (IRA): SPY November 19th 409 Short Put to November 26th401 Short Put for a .05 credit.
Comments: A little "window dressing" roll to lock in the realized gains of the 409 short put, while simultaneously reducing risk. I've collected 12.36 in credits via rolls with this so far, (See Post Below), relative to a current short put value for the November 26th 401 of .92, so I've locked in 12.36 - .92 or 11.44 ($1144) of gains so far.
I'd ordinarily just roll this out for duration, but would prefer a higher implied volatility environment to do that, so will look to take this off on approaching worthless if we don't get a volatility bump between now and expiry.
Shortput
Rolling (IRA): SPY January 21st 328 to 397 Short Put... for a 3.02 credit.
Comments: More clean-up of my longer-dated SPY premium-selling setup ... . Here, rolling the January 21st 328 up intraexpiry to the strike paying at least 1% in credit. Total credits collected of 5.15 + 3.02 = 8.17 relative to the 397 short put value of 4.04, so I've locked in gains of 8.17 - 4.04 or 4.13 ($413) so far.
Rolling (IRA): SPY November 19th 401 to March 18th 348 Short Put... for a 2.76 credit.
Comments: With only .72 of extrinsic left in the November 19th 401, cleaning up my longer-dated premium selling strategy in SPY by rolling out to the March 348 -- the strike that's paying at least 1% of the strike in credit. I've collected 13.31 (See Post Below) + 2.76 with this roll for a total of 16.07 so far relative to a value for the 348 of 3.49, so I've realized gains of 16.07 - 3.49 or 12.58 ($1258). Ordinarily, I would've just rolled it out a month, but the 16 delta strike in December is paying <1% of the strike price, so opted to "leap frog" this over short puts I already have on in the December, January, and February monthlies.
Closing (IRA): TAN November 19th 70 Short Puts... for a .15/contract debit.
Comments: Plain Jane profit-taking here on approaching worthless. In for 1.19 on weakness and >35% implied (See Post Below); out here for .15/contract with 31 days to go in the contracts. 1.04 ($104) profit per contract. Implied isn't horrible here at 41.2%, but liquidity in the options has dropped off somewhat, and it isn't exactly "weak" anymore.
Closing (IRA): IWM October 29th 202 Short Put... for a .13 debit.
Comments: Plain Jane profit-taking here. I would ordinarily roll this out, but implied volatility has crushed in dramatically here to 21.6% from where it was at over 25%. Collected a total of 5.18 in credits with rolls (See Post Below); closing out here puts the finishing touches on a realized gain of 5.18 - .13 or 5.05 ($505).
Closing (IRA): IWM October 22nd 205 Short Put... for a .42 debit.
Comments: Rolled this a few times, collecting a total of 4.88 in credits. (See Post Below). Closing it here results in a realized gain to date of 4.88 - .42 = 4.46 ($446).
I opened up a new one today in the November 19th expiry at the 204 strike, so could have also rolled from October 22nd to November 19th for a credit to do the same thing functionally (close the October 22nd/simultaneously open the November 19th).
Closing (IRA): SOFI October 15th 15 Short Puts... for a .23/contract debit.
Comments: Opened at-the-money for 1.76 (See Post Below), taking 1.53 ($153)/contract's worth of profits here, freeing up the buying power for another shot lower should earnings disappoint. Still have the October 15th 20 Covered Calls on, where I'm waiting to roll the 20's out on approaching worthless ... (or to take profit should we have a decisive move above 20; unlikely, but we can dream).
Rolling (IRA): SPY November 19th 379 to December 17th 388 SP*... for a 2.21 credit.
Comments: Part of a longer-dated strategy to keep maximal buying power deployed, even in "locally" (i.e., <45 days until expiry) low implied volatility environments. Here, the November 17th 379 is at 50% max, so rolling it out to the strike in December paying at least 1% of the strike in credit which is the 388, paying 3.96.
Up to this point, I've collected a total of 13.19 (See Post Below) in credits. With this roll, I've collected 13.19 + 2.21 = 15.40 relative to the December 17th 388 short put value of 3.96, so I've realized gains of 11.44 ($1144) so far.
* -- Short Put
Rolling (IRA): IWM October 1st 194 to October 29th 202... for a 1.71 credit.
Comments: With the 194 only having .29 left in it, rolling it out to the 16 delta strike the contract nearest 45 days rather than adding units. Total credits collected of 3.47 (See Post Below) + 1.71 = 5.18 versus a current short value for the 202 of around 1.97, so I've realized gains of 5.18 - 1.97 or 3.21 ($321) so far.
Rolling (IRA): IWM Sept 30th 201 Short Put to Oct 22nd 205... for a 1.49 credit.
Comments: Rollin', rollin', rollin' ... . With the 201 at >50% max, rolling out to the 16 delta October 22nd 205, as opposed to adding units. I've collected a total of 3.39 (See Post Below) + 1.49 here = 4.88 relative to the current price of the 205 of 2.23, so I've realized gains of 4.88 - 2.23 = 2.65 ($265) so far.
Trade Idea: SPRT October 15th 10 Short Put30-day implied volatility is at a whopping 280%. A trade idea with a ridiculous return on capital at max, regardless of whether you strip naked (i.e., short put) or spread it.
Metrics:
Notional Risk: $784
Max Profit: $216
ROC at Max as a Function of Notional Risk: 27.6%
ROC at 50% Max as a Function of Notional Risk: 13.8%
Break Even/Cost Basis in Stock if Assigned: 7.84
Comments: I'm not usually fond of meme stocks, but when I can potentially get 27.6% by selling a 50% out of the money put, well, I just might dip my toe in.
As a potential variation, consider spreading it by buying the October 15th 3 for .08 and selling the 10 for 2.16, resulting in a 7-wide that you're getting paid 2.08 for on a buying power effect of 4.92 -- a max profit ROC potential of 42.3%. Point in fact, I kind of like the spread better for defining the risk on a reduced buying power effect.
* -- October 15th expiry as of Friday's close.