OPENING: C JULY 17TH 35 SHORT PUT... for a 1.22/contract credit.
Notes: Taking a small directional shot here in relatively high implied for a financial (42/53) that's been #CoronaHammered. Would also be fine with taking on shares and then proceeding to cover with a cost basis of 33.78, since it has dividends (4.4% yield).
Shortput
OPENING (IRA): EWZ SEPTEMBER/JUNE 17/19 SHORT PUT LADDER... for a 1.44 credit.
It's not much of a ladder with only two rungs, but there's no July currently (there will be one after May opex, after which I'll consider adding a third rung).
An acquisitional play in high rank/implied (53/66) to potentially grab this divvy yielder (5.15%) at a discount.
OPENING: XLE JUNE 19TH 30 SHORT PUT... for a 1.06 credit/contract.
Notes: With rank/implied at 47/57, going bullish assumption here with the notion that oil prices recover somewhat as COVID-related restrictions lift. My general go-to is short strangle, but didn't want to get whipped on the call side if the recovery is dramatic.
OPENING: TQQQ JUNE 19TH 35 SHORT PUT (LATE POST)With rank/implied at 74/124 and the at-the-money short straddle paying a whopping 33% of the value of the stock price in the June expiry (57 days until expiry), sold the 84% probability of profit strike for a 2.06/contract credit late in the session.
Break even of 32.94.
CLOSING: /CL1! PUTSThis ... will leave a mark.
Simply too much risk to be naked/unhedged here in light of what occurred with the May contract, which may lather, rinse, repeat with the June.
OPENING: /CL APRIL 16TH 14 SHORT PUT... for an $850 credit.
Notes: With implied/rank at 67/181 and WTI crude at multi-year lows, adding in neutral to bullish assumption in April. Scratch at 22.41 for the whole show.
OPENING: CL1! MAY 14TH 15 SHORT PUT... for a $2260 credit.
Notes: Layering on some additional short put on weakness. Will begin to clean up near max loss April spreads here shortly ... . Scratch at 83.91.
OPENING: CL1! MAY 14TH 16 SHORT PUT... for a 1.47 ($1470) credit.
Notes: With my short put spreads all but goners, looking to re-coup some on this massive sell-off, where -- in all likelihood -- the "risk" is to the upside. Scratch at 36.11. I'll slap my Grandma if /CL breaks below 16.00.
Laddering these out in time ... .
OPENING: SPY NOVEMBER 20TH 280 SHORT PUT... for a 5.98 credit.
Notes: A delta cutter in the first expiry in which the at-the-money short straddle pays greater than 10% of the underlying; scratch at 93.39. Net delta for the entire show remains short. Getting somewhat bigger of a position than I wanted, but sticking with the basic program.
As a standalone trade: 88% probability of profit, delta/theta 16.92/2.46.
OPENING: SPY NOVEMBER 20TH 275 SHORT PUT... for a 5.68 credit.
Notes: Adding a delta cutter in the first expiry in which the at-the-money short straddle pays greater than 10% of the stock price which is (ugh) November. Scratch at 90.55. Net delta remains short with the vast majority attributable to the September 282 short call (-83.02 delta/2.83 theta/5.44 extrinsic), so it's as though I'm basically working a synthetic covered put that I've overwritten (is one way to look at it).