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Shortputvertical

Opening (IRA): MSTR Dec 20th 75/155 Short Put Vertical... for a 5.43 credit. Comments: High IVR/IV at 61.1/113.9. Doing something a little different here, selling the 10 delta short put and buying a put that cuts BPE in about half over doing a naked. Going low delta because, well, the underlying kind of scares the poo out of me. Metrics: Buying Power Effect: 74.57 Max Profit: 5.43 ROC at Max: 7.28% 50% Max: 2.72 ROC at 50% Max: 3.64 Compare: Dec 20th 155 Short Put (Cash Secured) BPE: 148.30 Max Profit: 6.65 ROC at Max: 4.48% Will generally look to take profit at 50% max.
NASDAQ:MSTRLong
by NaughtyPines
Opened (IRA): SPX January 14th 4020/4070 SPV*... for a 4.80 credit. Comments: A late post from Friday, since I reached my posting limit scrambling around doing defensive rolls in my margin account, as well as opening up some new positions in my IRA. Selling the 16 delta, buying the long 50 strikes out from that on "weakness plus" (i.e., weakness plus higher implied volatility). Generally, I'll look to ladder these out at intervals, assuming SPX implied is still there (it finished the week at 31.6% for the 30-day -- nearly twice what it was at the beginning of November) and take profit at 50% max. Smaller accounts can consider selling spreads in SPY with similar delta metrics (e.g., SPY January 21st 399/404 short put vertical, paying .51). * -- Short Put Vertical.
SP:SPXLong
by NaughtyPines
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