Conservative option strategies, what did you buy or sell today?

[fenders53]

I think I will be forced into some NEM and XLE soon. My hedges aren't hedgin' too well. The upside is I am good with the dividends. The only reason I stay away from the more leveraged stuff that pays better put premiums.

[fenders53]

Not so conservative but...............

IV crush is a beautiful thing thing when you are selling. Sold an ENPH put yesterday for 5.74 expiring in 10 days. About $17 out of the money IIRC. I was a directionally wrong and just bought it back for 1.50 this morning. Of course I took some risk holding it through earnings but researching my holdings is my friend. Sold my other ENPH put but I had to hold that one for a week for a similar outcome.

[NilesMike]

Looks like a good day to sell puts in XLE. Looking at Sept 17 48 strike for 1.10 ish

[fenders53]

(08-16-2021, 06:47 AM)NilesMike Wrote: Looks like a good day to sell puts in XLE. Looking at Sept 17 48 strike for 1.10 ish

Or is Wednesday going to be a whole lot better? 

Commodities are tough.  48 XLE does seem pretty safe to me.

[vbin]

Wrong thread

[mid range]

(08-16-2021, 07:04 AM)fenders53 Wrote:

(08-16-2021, 06:47 AM)NilesMike Wrote: Looks like a good day to sell puts in XLE. Looking at Sept 17 48 strike for 1.10 ish

Or is Wednesday going to be a whole lot better? 

Commodities are tough.  48 XLE does seem pretty safe to me.

I tried to sell XLE 46 puts today. I don't believe world events favor oil in the near term

[vbin]

(08-16-2021, 04:54 PM)mid range Wrote:

(08-16-2021, 07:04 AM)fenders53 Wrote:

(08-16-2021, 06:47 AM)NilesMike Wrote: Looks like a good day to sell puts in XLE. Looking at Sept 17 48 strike for 1.10 ish

Or is Wednesday going to be a whole lot better? 

Commodities are tough.  48 XLE does seem pretty safe to me.

I tried to sell XLE 46 puts today. I don't believe world events favor oil in the near term

Oil still have space to run in my opinion. Too soon. We haven't reopened completely yet. It will take another atleast 2 years for full re-opening.

[NilesMike]

(08-16-2021, 05:07 PM)vbin Wrote:

(08-16-2021, 04:54 PM)mid range Wrote:

(08-16-2021, 07:04 AM)fenders53 Wrote:

(08-16-2021, 06:47 AM)NilesMike Wrote: Looks like a good day to sell puts in XLE. Looking at Sept 17 48 strike for 1.10 ish

Or is Wednesday going to be a whole lot better? 

Commodities are tough.  48 XLE does seem pretty safe to me.

I tried to sell XLE 46 puts today. I don't believe world events favor oil in the near term

Oil still have space to run in my opinion. Too soon. We haven't reopened completely yet. It will take another atleast 2 years for full re-opening.

And OPEC has basically told Biden that they aren't increasing production any time soon.

[fenders53]

(08-16-2021, 05:07 PM)vbin Wrote:

(08-16-2021, 04:54 PM)mid range Wrote:

(08-16-2021, 07:04 AM)fenders53 Wrote:

(08-16-2021, 06:47 AM)NilesMike Wrote: Looks like a good day to sell puts in XLE. Looking at Sept 17 48 strike for 1.10 ish

Or is Wednesday going to be a whole lot better? 

Commodities are tough.  48 XLE does seem pretty safe to me.

I tried to sell XLE 46 puts today. I don't believe world events favor oil in the near term

Oil still have space to run in my opinion. Too soon. We haven't reopened completely yet. It will take another atleast 2 years for full re-opening.

I find no comfort in two year out oil dreams.  That's enough time for a recession, FED tightening, Iran's oil hits the market, election and frackers gone wild, pick one.  It's why I stopped reading S.A. oil articles.  They are wrong over half the time.  Oil always finds a way to crush my soul if I try to hold it.    

I do think we should be near the lower end of the range but I sleep with one eye open.

[vbin]

Everytime oil runs too much, world has been threatened by war. Biden not gonna do anything.
OPEC knows it. Wait and watch oil run again.

[fenders53]

(08-16-2021, 08:42 PM)vbin Wrote: Everytime oil runs too much, world has been threatened by war. Biden not gonna do anything.
OPEC knows it. Wait and watch oil run again.

Just one small factor.  Remember last year when we bought SPY puts a couple weeks late and then it doubled faster than anytime since WWII?  

I hope you are right on oil.  IMO it's fairly priced at the moment. I think Vlad and Prince Chainsaw will keep it in line.

[fenders53]

Monthly's expired today and it was rough. I've been blessed and haven't had a terrible options month since MAR 2020. Oddly enough my riskier plays did fine and my conservative plays wiped out the rest of my ports monthly progress. I sold CMI and MGA puts about two months ago. They fell fast and I rolled them. Probably fell another 15% of the total loss after that. I knew they would be exercised last night with Ex-Div today.

I caught a small break and CMI ran at the open today so I bailed before it pulled back. It's still a little overvalued and it sure as hell was $20 ago. I am supposed to be OK with being assigned but I am not. My bad for sure.

Similar story with MGA. I was exercised several contracts. Kept one because I do wish to own it long term. I can't even sell covered calls here. Re-allocated the other 100 shares.

Pretty thorough beating on conservative enough stocks in a market that isn't even down. My destiny was locked in on the initial trades. I am usually pretty good about valuation but I messed it up that week. I hate it when I get sloppy. Probably about a $4k penalty overall after premiums. They were down fast and I just didn't want to eat it because I know they aren't junk companies. I can usually roll with high success because I don't trade junk too often. Not this time. Valuation bit me on boring stocks.