... for a 1.46 credit. Notes: Going out to the first expiry in which the at-the-money short straddle pays greater than 10% of the stock price and selling the 16's with the intent to potentially do additive delta adjustments over time. From a portfolio-wide perspective, I have a good sprinkling of longer-dated core exchange-traded fund positions to start out the...
... for a 3.14 debit; 4.09 ($409) profit. Notes: Taking profit on the put side. Delta/theta -26.43/30.65. Position value at 89.18 versus scratch at 87.41. Will look to flatten short delta going forward if the market doesn't do it for me.
With the CBOE Volatility Index at 13-ish here, there is nary a premium selling play in the market ... . Naturally, that can quickly change, but in the mean time, it's "housekeeping time." "Housekeeping time" is a largely boring affair: 1. Look at Setups for Delta Balancing. If you've been reading any of my posts, you'll notice that I largely concentrate on...
5) Look at Setups in Expiries in the Friday Immediately Following the Announcement or the Friday Thereafter. I mechanically set these up in options that expire the week following the announcement, as it gives me a little more time for the setup to work out. 6) Avoid ADR's and/or Underlyings That Aren't Scheduled to Announce on a Particular Date/Time. Next week,...
Traditionally, AA's earnings announcement marks the beginning of the earnings season for me, and it announces earnings on Monday after market close. Naturally, there are tons of plays you can make, but, unfortunately, not all are ideal for premium selling or, for that matter, other options strategies that rely on a firm directional assumption (like Super...