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  • #121
  • Aug 18, 2016 7:05pm Aug 18, 2016 7:05pm
Today:

Sold TEVA Sept 16th 47.5 put for a .68/contract credit. Looking to either be put the stock there and proceed to sell calls against or just keep the premium.
Sold GDXJ Sept 16th 56 call for a .73/contract credit, completing a 45/56 short strangle. My original intention was to look at being put the stock at 45, but I don't like to have too much short put hanging out there naked at once, and I wanted to do the TEVA shortie. TEVA's got a divvy; GDXJ don't.

* * *

Starting to move my non-IRA account more into covered call mode. Doing covered calls (or selling short puts as a precursor to potentially getting put the stock) just seems to be a far less hectic way of trading, and less hectic is always a good thing ... . Covered calls aren't the sexiest thing in the world and sometimes they're awfully slow going, particularly if price drops out from under you and you're selling calls against until the cows come home to get your cost basis reduced to the current price of the underlying. Naturally, this is little different than my massaging the crap out of a broken iron condor or short strangle to get it back to scratch or better.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #122
  • Aug 18, 2016 7:08pm Aug 18, 2016 7:08pm
Quoting ZebraSquirl
Bought to cover GLD Aug 19th 119/124 short put vert for .04 ($4)/contract debit. With 7 DTE to go and the put side of this setup nearing worthless, I'm closing it here, rolling out the 121/126 short call side to the Sept 2nd expiry for a small debit and for a (woo-hoo!) one strike improvement, and selling a short put vert against for a credit, so that I'm net credit on the roll. This was the last GLD setup I had on pre-Brexit (a short call spread that bet on a Bremain vote), and I'm working the short call side up little by little over time ... ....
Covered this enchilada for a loss. The IV in GLD is piss poor, and the buying power could better be used elsewhere. GDX and GDXJ have always had the sweeter IV; don't know why I got sucked into the GLD crap heap instead. Lol.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #123
  • Aug 19, 2016 7:53pm Aug 19, 2016 7:53pm
Rolled the YELP Sept 16th 32 to the 35 for an additional .37 ($37)/contract credit ... . It's now a 35/38 short strangle with price dancing slightly above $38.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #124
  • Aug 20, 2016 5:56pm Aug 20, 2016 5:56pm
Here are my candidates for covered calls next week. Right now, they're based solely on ROC metrics, the key being to get at least a 10% ROC if the shares are called away at the short call strike. Additionally, the focus is on sub 10.00 debit plays; underlyings of higher dollar value are generally more amenable to other strategies.
After looking at the charts, as well as doing some due diligence on the companies, I'll cull the herd ... .

NE (O&G): Buy shares at 6.21; sell the Sept 30th 6.5 call; 5.85 db; $65 max profit (11% ROC).
CLF (Mining): Buy shares at 6.09; sell the Sept 30th 6.5 call; 5.75 db; $75 max profit (13% ROC).
AMD (Semiconductor): Buy shares at 7.62; sell the Sept 30th 8 call; 7.21 db; $79 max profit (11% ROC).
WLL (O&G): Buy shares at 8.04; sell the Sept 30th 8.5 call; 7.36 db; $114 max profit (15.5% ROC).
OAS (O&G): Buy shares at 10.27; sell the Sept 30th 11 call; 9.84 db; $116 max profit (11.8% ROC).
Fireworks are fun ... as long as you don't blow your fingers off.
  • #125
  • Aug 22, 2016 6:15pm Aug 22, 2016 6:15pm
Bought to cover GDXJ Sept 16th 45/56 short strangle for a 1.05 db. Legged into it for a total of 1.40 ($140) cr/contract. Net profit: $32/contract. Was planning to hang in there until 50% max profit, but have my eyeballs on other "stock porn" I may want to use the buying power on ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #126
  • Aug 22, 2016 6:21pm Aug 22, 2016 6:21pm
Quoting ZebraSquirl
Here are my candidates for covered calls next week. Right now, they're based solely on ROC metrics, the key being to get at least a 10% ROC if the shares are called away at the short call strike. Additionally, the focus is on sub 10.00 debit plays; underlyings of higher dollar value are generally more amenable to other strategies. After looking at the charts, as well as doing some due diligence on the companies, I'll cull the herd ... . NE (O&G): Buy shares at 6.21; sell the Sept 30th 6.5 call; 5.85 db; $65 max profit (11% ROC). CLF (Mining): Buy...
Went ahead and did the WLL, CLF, and NE covered calls outlined above. I decided not to do the OAS, since both WLL and NE are petro already, and didn't want to get in on AMD at the top of its arc. WLL was filled for 6.93; CLF for 5.85; and NE for 5.78 ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #127
  • Aug 22, 2016 6:26pm Aug 22, 2016 6:26pm
Bought TEVA Sept 16th 42 put for a .06 ($6)/contract db. I already have a TEVA short put on at the 47.5 strike (same expiry) and wanted to provide myself with some cheap downside protection in the event it decides to implode. Apparently, there is a patent decision in the hopper that could be decided any day and didn't want my junk to be hanging out there "naked" ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #128
  • Aug 22, 2016 7:35pm Aug 22, 2016 7:35pm
NOT "Zeebs" style but...............

Watching silver:
SLV (17.97)ratio spread>> Buy Jan16C and sell Jan23Cx2 (2.43-.46(.23x2)=1.97)(intrinsic value=1.97)
Attached Image (click to enlarge)
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  • #129
  • Aug 22, 2016 7:40pm Aug 22, 2016 7:40pm
Watching for a possible loooooooong-term trade.

December 2017 Corn: current price 381
Ratio Spread: Buy Dec330C and Sell Dec560Cx2 (61-10(5x2)=51)($2,550)

***Prices on chart do not correspond to Dec 2017 contract.
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  • #130
  • Aug 23, 2016 9:28am Aug 23, 2016 9:28am
Quoting srt
NOT "Zeebs" style but............... Watching silver: SLV (17.97)ratio spread>> Buy Jan16C and sell Jan23Cx2 (2.43-.46(.23x2)=1.97)(intrinsic value=1.97) {image}
I need to dip into some of those ratios ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #131
  • Aug 23, 2016 9:45am Aug 23, 2016 9:45am
Quoting srt
Watching for a possible loooooooong-term trade. December 2017 Corn: current price 381 Ratio Spread: Buy Dec330C and Sell Dec560Cx2 (61-10(5x2)=51)($2,550) ***Prices on chart do not correspond to Dec 2017 contract. {image}
Mind reader ... . I was actually looking at the ag futures complex last night (wheat, beans, oats, corn), thinking of a similar long-term play, but focusing on oats. Oats is harvested earlier than beans/corn, so the crop numbers gel a little earlier, which affects price, yada yada.

But going long dated is best. So much crap that'll pop/drop beans/corn (weather, various ag reports predicting acres to be planted, actual reports of acres planted, etc.) you need to give it time to work out.

And, right here (pointing at these ugly lows), is a great spot for a bullish setup in one or more of these.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #132
  • Aug 23, 2016 9:47am Aug 23, 2016 9:47am
TWLO Sept 16th 41/49 short put vertical; filled for a 1.37 credit.

I generally don't like to get into these IPO's that much; they can be a roller coaster. Because of that, I decided not to "hang naked," but go with a fairly wide defined risk spread ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #133
  • Aug 23, 2016 11:19am Aug 23, 2016 11:19am
Quoting ZebraSquirl
{quote} Mind reader ... . I was actually looking at the ag futures complex last night (wheat, beans, oats, corn), thinking of a similar long-term play, but focusing on oats. Oats is harvested earlier than beans/corn, so the crop numbers gel a little earlier, which affects price, yada yada. But going long dated is best. So much crap that'll pop/drop beans/corn (weather, various ag reports predicting acres to be planted, actual reports of acres planted, etc.) you need to give it time to work out. And, right here (pointing at these ugly lows), is a...
I grew up on a farm so followed ag my whole life. Fundamentals in grains are as ugly as I've ever seen (beans are the best of a bad bunch) but the price is showing that. Based upon the recent COT report I think the funds might try pushing corn to new lows before the bottom is in. The current crops are huge so I want to play next year's crop (in the US) so have the weather to deal with again. This year's crop is already made (mostly) just a matter of how huge.
  • #134
  • Aug 23, 2016 12:38pm Aug 23, 2016 12:38pm
Quoting srt
{quote} I grew up on a farm so followed ag my whole life. Fundamentals in grains are as ugly as I've ever seen (beans are the best of a bad bunch) but the price is showing that. Based upon the recent COT report I think the funds might try pushing corn to new lows before the bottom is in. The current crops are huge so I want to play next year's crop (in the US) so have the weather to deal with again. This year's crop is already made (mostly) just a matter of how huge.
Yep. I'm in Iowa, so beans and corn, and this year has been perfect weather (rain at the right time, heat at the right time), so these might not be the lows. Flip side is that feed's cheaper (which reminds me to gander at pork/cattle).

For a lot of traders, a totally overlooked space, but it's really like any other basic materials trade, although you've got that great unknown -- "weather" -- thrown in there ... .
Fireworks are fun ... as long as you don't blow your fingers off.
  • #135
  • Aug 23, 2016 12:46pm Aug 23, 2016 12:46pm
Quoting ZebraSquirl
{quote} Yep. I'm in Iowa, so beans and corn, and this year has been perfect weather (rain at the right time, heat at the right time), so these might not be the lows. Flip side is that feed's cheaper (which reminds me to gander at pork/cattle). For a lot of traders, a totally overlooked space, but it's really like any other basic materials trade, although you've got that great unknown -- "weather" -- thrown in there ... .
Nebraska here :-)
My brother farms 2,000 acres.

Weather is the one thing that makes grain different than the glut in oil. Weather highly influences supply for grains & changes quickly. War is about the only thing (other than price) that slows the flow of oil.
  • #136
  • Aug 23, 2016 12:47pm Aug 23, 2016 12:47pm
Opening: MIFI covered call.

Metrics:

Bought 100 shares at 3.30
Sold Oct 21st 4 call
2.95 debit
Max Profit: $105 (assuming a call away at 4)
ROC: 35.6%

Notes: A lot of these smaller (sub $10) plays I'm working are with the kid's weenie account. Trying to work it into something a little larger so that I'm not relegated to trading these little guys all day. There's nothing wrong with making money that way; it's just a touch limiting. The universe of quality plays in the sub-$10 space is quite small.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #137
  • Aug 23, 2016 12:55pm Aug 23, 2016 12:55pm
Quoting srt
{quote} Nebraska here :-) My brother farms 2,000 acres. Weather is the one thing that makes grain different than the glut in oil. Weather highly influences supply for grains & changes quickly. War is about the only thing (other than price) that slows the flow of oil.
You're "right next door" ... . Lol. You kids get that "Market to Market" show over there? I watch it every week, even though I think some of their advice to farmers about hedging is kind of "weak," to be honest.
Fireworks are fun ... as long as you don't blow your fingers off.
  • #138
  • Aug 23, 2016 1:02pm Aug 23, 2016 1:02pm
Quoting ZebraSquirl
{quote} You're "right next door" ... . Lol. You kids get that "Market to Market" show over there? I watch it every week, even though I think some of their advice to farmers about hedging is kind of "weak," to be honest.
Used to watch that show all the time :-)
Now get most info from internet. Cut out all the useless info.

***Wired motels in Shenandoah, Red Oak & Toledo when I was an electrician for 22 years :-)
  • #139
  • Aug 23, 2016 7:13pm Aug 23, 2016 7:13pm
Here's one more "Zeebs" style.

Chesapeake Energy (CHK) (followed this company forever:-)) (some "debt" issues but which energy company doesn't)
***nat. gas is acting a bit "perky" lately

Covered Call:
Buy 100 @ 6.46
Sell Oct16 7 Call for .55
Max profit= $109 (ROI=18%)
Break Even = 5.91
Attached Image (click to enlarge)
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  • #140
  • Edited 7:40pm Aug 23, 2016 7:21pm | Edited 7:40pm
Low cost trade.

AUY (gold miner) (current price = 5)

Call spread:
Buy Oct16 4 Call >>1.10
Sell Oct16 5.5 Call >>.25
Total Cost = $85
Max Profit = $65 (ROI= 76.5%)
Break Even = 4.85

***Might watch when/if stock nears 4.00-4.50
***Not the best looking chart but I think gold chart still looks OK for the bulls.
Attached Image (click to enlarge)
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