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

[fenders53]

(01-26-2021, 07:17 AM)NilesMike Wrote:

(01-26-2021, 06:59 AM)fenders53 Wrote: It might.  

That's always the tricky part.

If the market were rational you would win, but then again the stock would trade for $60 now.   It's beloved for a UTE, but it has ceased trading like a tech stock finally.  UTEs appear to be finding a near-term bottom.  NEE didn't get beat up so it may not matter other than being in all the utility ETFs.  Sorry, none of that was useful lol.  I need to get some cash to work today but reality is I need to buy back even more short puts now.

[fenders53]

Finally got a chance to get serious selling some puts yesterday.  Probably too early like always but the opportunities have been brief for months.

TGT BMY HD (2) ALE (3)

All but ALE EXP 2/5 and fairly close to the money.  I have a lot of puts expiring 2/19 and it's too much to manage. 

I need some tech exposure if I sell anymore today.  May close some of my boring puts early if the underlying doesn't get hammered at the open.

[NilesMike]

(01-28-2021, 06:09 AM)fenders53 Wrote:   I have a lot of puts expiring 2/19 and it's too much to manage. 

The last 2 buy to open (IBM and NEE) both exited after a couple of days at their targets.

I have found that the debit spreads are much easier to manage but you need to be right on direction, rather than betting where a stock WON'T go.

Both, debit and credit , have their place.

Yesterday I bought RVP 17.5/22.5C for .75, max profit 4.25 will target 1.50. 2/19 EXP.

Based on scan of stocks at 52 week high and significant short float %

[fenders53]

I will try one soon. I know I am stuck in my comfort zone of being on the option sell side 99%. Much of the reason
is my significant assets are in Waterhouse and I am limited on option activity due to their trading interface. At some point I may move some assets. Not long ago I needed to maintain a very large balance for large fee discounts. That is probably not true anymore.

Congrats on the NEE trade. Flat quarter and choppy market made that one work fast. Love it when these trades work out in days.

[fenders53]

For better or worse I bought to close 75% of the puts I sold yesterday for a 60%+ profit. They'll likely expire worthless but my don't be greedy instinct kicked in.

[NilesMike]

(01-28-2021, 01:09 PM)fenders53 Wrote: For better or worse I bought to close 75% of the puts I sold yesterday for a 60%+ profit.  They'll likely expire worthless but my don't be greedy instinct kicked in.

Nice and I think wise.

[fenders53]

(01-28-2021, 04:23 PM)NilesMike Wrote:

(01-28-2021, 01:09 PM)fenders53 Wrote: For better or worse I bought to close 75% of the puts I sold yesterday for a 60%+ profit.  They'll likely expire worthless but my don't be greedy instinct kicked in.

Nice and I think wise.

And my over used line once again...... it is better to be lucky than good 

Honestly though my spidey senses for a nervous market are getting better.  I've been a little stingy deploying my allocated income producing cash the past couple weeks.  I didn't get greedy this time and I had more cash today to redeploy.  I resold an HD put for the same next Friday expiration.  Another $305 in premiums and the strike is dropped for 270 to 267.50.  An unplanned roll if you will.  That's still a win if it drops further and I get exercised.  I feel very comfortable with HD's next few earnings reports.  I dread the comps in a few quarters though.  That's why God made covered calls I guess. 

I still need to find some tech to drop put sales on.  I wore MSFT out.  Maybe it will pull back a touch.  QQQ premiums are usually uninspiring for the potential risk, but I haven't looked since VIX spike.

[ken-do-nim]

(01-29-2021, 07:23 PM)fenders53 Wrote:

(01-28-2021, 04:23 PM)NilesMike Wrote:

(01-28-2021, 01:09 PM)fenders53 Wrote: For better or worse I bought to close 75% of the puts I sold yesterday for a 60%+ profit.  They'll likely expire worthless but my don't be greedy instinct kicked in.

Nice and I think wise.

And my over used line once again...... it is better to be lucky than good 

Honestly though my spidey senses for a nervous market are getting better.  I've been a little stingy deploying my allocated income producing cash the past couple weeks.  I didn't get greedy this time and I had more cash today to redeploy.  I resold an HD put for the same next Friday expiration.  Another $305 in premiums and the strike is dropped for 270 to 267.50.  An unplanned roll if you will.  That's still a win if it drops further and I get exercised.  I feel very comfortable with HD's next few earnings reports.  I dread the comps in a few quarters though.  That's why God made covered calls I guess. 

I still need to find some tech to drop put sales on.  I wore MSFT out.  Maybe it will pull back a touch.  QQQ premiums are usually uninspiring for the potential risk, but I haven't looked since VIX spike.

My tech trio are the Direxion triple leveraged funds SOXL (semi-conductor), TECL (tech like Apple & Microsoft), and LABU (biotech).  Prices are high now, but the first two are splitting soon.

[fenders53]

My VSTO earnings beat prediction came a quarter early. Thanks Qanon!

Feeling cute today. Might push my luck and sell near the money puts one more time. I need to raise my price target. Can I just make up a new number like a real analyst?

EDIT: Didn't happen. Got busy with APD in absolute freefall this AM and missed my few minutes to sell new VSTO puts. Wish my long position was larger as it is up 60% since fall. I'll have to be patient.

[fenders53]

Closed out another HD put for the third time in about a week. This time for about 98% gain in five days. One of my better options weeks in a while with the volatility. Went with a contrarian play for now. USD is up and gold is hated. Gotta have a thesis and mine is we are about to start spending and printing money. Gold has a good enough floor in it after the recent drop. It's not rational right now. It rarely is when the market goes "risk on" mode. Sold GOLD (Barrick) puts from 3-5 weeks out in the 21-21.50 strike range. Average premium is about 3% so that works. Especially since it's intended to be a hedge which I am light on currently. I'll do another round of puts if these get in the money. Gold is barely 1% of my port currently so this is a conservative enough play.