I'm looking at engaging a little bit of buying power here while I wait for volatility in the broader market to pick up without taking on a huge bunch of risk ... . Bought 100 Shares WFT @ 5.78 Sold June 6 Put Total Package: $518 I'll put in a GTC order to cover for $6.00, since that is what I would receive if called away at expiry, realizing an $82 profit/100...
This is part of a core GLD position I'm working ... . Originally put on for a $82/contract credit, I covered it today for a $20 debit, yielding a net profit of $62/contract. I considered merely rolling the spread up to approximately the 75% probability out-of-the-money strike (for the short put), but I decided to close it out instead, lock in the profit, and...
I don't have an IWM setup on at the moment and with the highest implied volatility among the four index exchange traded funds (SPY, IWM, QQQ, and DIA), this is the place to sell broad market premium ... . Moreover, with similar percentage out-of-the-money strikes, I'm getting almost exactly as much bang for my buck as the June 17th SPY iron condor (see Post...
While I wait for my "gaggle" of long VIX/VIX derivative setups to play out, I'm going to play a few of these smaller earnings announcements, so that I can keep powder dry for the juicier underlyings (should their implied volatility ever ramp up to my standards). Metrics: Probability of Profit: 77% Max Profit: $79/contract Buying Power Effect/Underfined:...
I'm adding on a touch of long delta here so that my core SPY position doesn't stray too far to the negative side. The first thing I looked at, however, was whether I could peel off some short call spread action to balance instead, but most of the spreads have not yet decayed enough to make that worthwhile ... . Filled for $41/contract ... .
Next week brings in a bevvy of earnings plays, but not all are worth of a premium selling, implied volatility contraction play. These are the best among the offerings currently to play either via short strangle or iron condor, although others could naturally come to the forefront if implied volatility increases dramatically immediately before earnings. NFLX:...
With the short put nearing worthless here, I'm closing it out for a .05 debit ($5). I received a .68 credit for the 54 short put ($68), so I realized a profit of .68 - .05 = .63 ($63)/contract on that side. Unfortunately, price is getting uncomfortably close to my short call side ... .
Another thing I'm going to do while waiting for volatility to return in the broader markets such that it makes sense to set up plays 45 days out is go short duration. While I'm not going to put this particular trade on because I have a short duration RUT/IUX iron condor that I rolled out to next week standing in as this week's short duration play (see Post...