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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.
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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.
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Looks like a good day to sell puts in XLE. Looking at Sept 17 48 strike for 1.10 ish
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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.
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08-20-2021, 04:23 PM
(This post was last modified: 08-20-2021, 04:24 PM by 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.