Archive for August, 2020

SPY – Milking Our Cow Aug 17 – 25

August 17 After having sold our straddle on Aug 16 at 336, SPY gapped up on Monday to 338. We rolled to the same expiry for a strike of 338. This was profitable, losing $0.44/share on the call but gaining $1.08 /share on the puts. We knew we’d have to close this before end of […]

 

GLD – Milking My Rented Cow Day 4

GLD dropped this morning from 188 to 186.50. I sold a 188/186.50 put spread to accommodate this. The 188 put I bought back resulted in an $0.84 loss and a debit of $2.42 to cash flow, while the 186.50 put sold brought in new cash flow of $1.51. Somehow – by mistake it is embarassing […]

 

GLD – Milking My Rented Cow – Day 3

As the thumbnail image shows, yesterday afternoon GLD rose from 183 to 186. I had prophylactically sold a 186/185 bear put spread if GLD rose to 186, which brought in $0.50 of revenue per share. Now I was holding a -1 +1 -1 “ladder” spread. I did not have time to deal with this until […]

 

GLD – A Proof of Concept Milking Rented Cows

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SPY Milking Our Cow on August 13 and 14

On Thursday, SPY started out the day on a moderate drop, so we immediately rolled our 338 straddle into a 335 straddle, at a tiny gain of $28 per straddle, or $0.28 cents per share. During the same day we bought and sold only the threatened call side for a $0.48 gain. On Friday, SPY […]

 

IWM rolls 13 and 14 August

As seen in the graph above, IWM remained range bound in the last 2 days, fluctuating around 157. We optimized our positions for maximum theta decay by rolling every time the stock moved by $1.00. This sacrificed a bit of cash flow, but were brought in profits and optimized future profits. On the 13th we […]

 

IWM rolls 05 AUG – 12 AUG

Here was the status at the end of August 5 I got a bit behind in my reporting, so I’m going to provide one graph and a brief recap for each day. Aug 6 The price opened up $2 over our straddle centered on 152. So I rolled to 154. bought to close AUG 07 […]

 

SPY – 12 August Rolls

SPY continued to ride the Corona Express roller-coaster today, rising sharply after swooning 7 points in late trading yesterday. Looking at the technicals, I was convinced SPY would rally to 334, but drop from there to around 332 by the end of the week, and possibly lower to $329. Late on the 11th I believed […]

 

SPY – Summary of Rolls from 06 -11 August

The last few days have been a maelstrom of activity for me, recording new videos for the channel TradeJolt on Youtube, adding new credit card processing functionality to this website, and preparing the launch of a new blog dedicated to cryptocurrency finance, decryptofied.com. We’re also busy working away at an exciting new functionality to this […]

 

IWM – Aug 5 Rolls

Contrarily to SPY, IWM had not moved up quite as much, and looked like it might correct back towards our 152 straddle center. So I chose not to change the center point. However, the position was profitable. Upon examining the theta decays on the Aug 21 that I had been holding versus the new Aug […]

 
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