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Shortstrangle

Rolling: ARKK January 21st 95.22C/104.22P to February 18th... 94.22C/104.22P inverted short strangle for a 3.80 credit. Comments: Rolling this a smidge early here. Total credits collected of 15.25 as of the last adjustment (See Post Below) plus the credit received for this roll. The setup is inverted by 10.00, so I can still make money on it because I've collected more in credits than the inversion, but am more likely just to scratch it out if I get the opportunity so that I can reload an unbroken setup. I would note that there was a dividend/special distribution on the 29th which affected the strike prices of the setup.
AMEX:ARKK
by NaughtyPines
Rolling: MU January 21st 69 Short Put to 86... for a 1.01 credit. Comments: With the 69 short put converging on worthless, rolled it up to a strike with a delta about half that of the short call. I originally collected 2.22 in credit for the 69/97.5 short strangle (See Post Below) and had a profit target of 50% of that or 1.11. Consequently, I'm revising the profit target to 1.11 plus what I received for the roll up of the 69 (1.01) (i.e., my new profit target to take off the now 86/97.5 is 2.12). The other way to look at it is that I've collected a total of 3.23 in credits -- 2.22 for the original setup plus 1.01 for the roll up, and I want to close it out for 1.11 less than that or 3.23 - 1.11 = 2.12.
NASDAQ:MU
by NaughtyPines
Closed: BITO January 21st 25/44 Short Strangle... for an .80 debit. Comments: Filed this for a 1.60 credit (See Post Below; out here via good-until-cancelled order to take profit at 50% max. .80/$80 profit. 3.3% ROC as a function of buying power effect. Although implied volatility has contracted a bit, will consider re-upping in the February cycle after New Year's, assuming the strikes above 40 get populated. Currently, the February 18th 40 short call is the highest available strike, with a delta of .29.
AMEX:BITO
by NaughtyPines
Opened (Margin): NVDA January 21st 220/360 Short Strangle... for a 6.15 credit. Comments: Ooops. Missed one. Filled this on Friday. Rank/implied at 96/66 with earnings in the rear view mirror. 6.15 credit on buying power effect of 28.24; 21.8% ROC at max; 10.9% at 50% max as a function of buying power. Went higher probability of profit with lower delta strikes due to slightly shorter duration than I usually do (35 days 'til expiry). Will look to take profit at 50% max; manage sides on approaching worthless/side test.
NASDAQ:NVDA
by NaughtyPines
1
Opening (Margin): BITO January 21st 25/44 Short Strangle... for a 1.59 credit. Comments: Selling ~16 delta premium in high implied BITO (30-day at 82%). Unfortunately, because the broker's basically requiring that this particular underlying be cash-secured, the ROC isn't very sexy as a function of buying power effect: $159 credit on a buying power effect of $2416 or 6.6% at max/3.3% at 50% max. In any event, will look to take profit at 50% max; manage sides on approaching worthless or side test.
AMEX:BITO
by NaughtyPines
4
Rolled: ARKK December 17th 104C/106P to January 21st 100C/105P... short strangle for a 4.16 credit. Comments: Late post. Rolled this on Friday with 14 days to go, improving the inversion by one strike on the put side, but widening it to sell the short call strike that was about half the delta of the short put. Total credits collected: 10.22. This started out as a high probability of profit, delta neutral December 17th 106/135 short strangle (See Post Below), after which ARKK proceeded to implode, resulting in defensive short call rolls from the 135 to the 114 strike (See Post Below), and then the 114 to the 104 strike (See Post Below). The end result is an inverted, 5-wide short strangle, with the short put above the short call and break evens on the down side of the short put strike minus total credits collected or 105.00 - 10.22 = 94.78 and on the call side of the short call strike (100.00) plus the total credits received of 10.22 or 110.22 and delta/theta of 29.71/13.08. The underlying finished Friday's session at 93.53 relative to a downside break even of 94.78, so I'm not in horrible shape relative to if I had just sat there and watched in horror as the short call converged on worthless and the short put value exploded. Ideally, I get a bounce back to the mid point of the inversion (to around 102.50), but I'll continue to look to manage sides to keep the setup from getting too directional.
AMEX:ARKK
by NaughtyPines