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Shortput

OPENING (IRA) (LATE POST): IWM OCTOBER 16TH 138 SHORT PUT... for a 1.98 credit. Notes: Another late post due to the number of "Update" posts I did yesterday. Instead of putting on my weekly 16 delta short put in SPY where expiry-specific implied is above 20, went with the more "frisky" IWM with expiry-specific implied at 30.8%. This will probably be the last broad market short put I deploy before the general elections. I want to have as much dry powder as possible in the event we have a sell-off or other high volatility event before or (more likely) after those.
AMEX:IWM
by NaughtyPines
1
OPENING (IRA): SPY AUGUST 28TH 280 SHORT PUT... for a 3.55 credit. Notes: Doing something a little more "programmatic" in the IRA by selling the 1 standard deviation/16 delta short put in the expiry nearest 45 days until expiry. Will take profit on approaching worthless or take assignment and sell calls against at the strike nearest the break even. This is naturally buying power heavy, but you can look to do the same basic trade in the smaller IWM or XLK, which has a three month correlation with SPY of .86.
AMEX:SPYLong
by NaughtyPines
OPENING (IRA): SPY SEPTEMBER 4TH 295 SHORT PUT... for a 3.45 credit. Notes: Sold the strike nearest the 16 delta. Meant to do this earlier in the week, but probably got distracted by a few earnings plays. Cost basis of 291.55 if assigned. Basically, looking to do this programmatically every week in the expiry nearest 45 days 'til expiry and then run it to expiry, at which time these will either (a) expire worthless; or (b) they'll be in the money, and I'll be assigned shares, at which point I'll proceed to cover with a short call at the strike nearest my cost basis (i.e., in this case, the 292).
AMEX:SPYLong
by NaughtyPines
2
OPENING: NKLA AUGUST 21ST 15 SHORT PUT... for a .90 credit. Metrics: Max Profit: $90 Max Loss: $1410 (assuming stock goes to zero) Break Even/Cost Basis in Shares: 14.10/share ROC% at Max as a Function of Notional Risk: 6.4% Notes: 30-day implied still high here, so doing something a little more risk adverse with a far out-of-the-money short put that still pays >5% ROC at max as a function of notional risk. Ridiculous that a 2.25 delta strike is paying that amount. The one minor downside: markets aren't the most liquid here; I got filled at .90 when markets were .10 wide. They've splayed out to .30 wide since ... .
NASDAQ:NKLALong
by NaughtyPines
THE WEEK AHEAD: MU, FDX EARNINGS; XOP, IWM, EWZEARNINGS: MU (36/64/11.7%) announces earnings on Monday after the close. Pictured here is a 19 delta short strangle in the July expiry, paying 1.55. FDX (46/59/11.4%) announces Tuesday after the close, with the 20 delta July 17th 115/147 paying 4.56. EXCHANGE-TRADED FUNDS ORDERED BY RANK AND SCREENED FOR 30-DAY >35%: EWW (59/44/12.6%) EWZ (47/63/17.7%) XLE (45/52/16.0%) GDXJ (43/60/17.7%) SMH (37/42/12.0%) GDX (36/45/14.5%) XOP (32/70/20.2%) USO (13/67/16.7%) Would probably go out to August here (54 days) ... . Looked at through the lens of what the short straddle is paying as a function of share price, it looks like I should be selling premium in XOP (20.2%), followed by EWZ (17.7%) and/or GDXJ (17.7%). BROAD MARKET ORDERED BY RANK: IWM (57/45/12.7%) QQQ (38/32/<10%) EFA (37/29/<10%) SPY (37/34/<10%) Small caps continue to be where the juice is at. IRA DIVIDEND-GENERATORS IYR (53/40/11.7%) XLU (50/33/<10%) EWZ (47/63/17.7%) EWA (46/40/11.2%) EFA (37/29/<10%) SPY (37/34/<10%) HYG (35/20/<10%) EMB (20/18/<10%) TLT (20/19/<10%) EWZ offers both better better premium as a function of stock price than IYR at the moment, as well as slightly higher yield (3.66% for the former; 3.50% for the latter). Since I've already laddered out IYR, I may dip at the EWZ well with the 16 delta short put paying .70 in August at the 22 strike, .84 in September at the 21 ... .
NASDAQ:MU
by NaughtyPines