Archive for 2020

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 […]

 

SPY 05 AUG Rolls

Ok, this morning SPY had gapped up to 332, a hair length away from its all time high. I thought this was likely to happen, but I had still hedged out the risk of a big downside move, while sacrificing upside gains, because I was “unbalanced” in my sold option positions, being short puts but […]

 

SPY – Aug 3 and Aug 4 Option Rolls

On Aug 3, SPY gapped up from $324 to $328, meaning we needed to recenter our straddle from its 324 strike level. On the call side, now-in-the-money by $4.00, we reduced that exposure by buying back the 324 strikes. This cost us $2.48 per share of loss. This was almost entirely offset by a $2.06 […]

 

IWM – 03 Aug and 4 Aug Rolls

I got a bit behind in my postings so I will report the last 2 days of trading here. On the morning of the 4th IWM was threatening to breach its high at 149.60. so we closed our 145 strike straddle and shorted a 149 strike straddle. We lost $1.75 per share on the Call […]

 

GE – A New Financial Cow for Our Growing Herd

Well, our milk-the-cow strategy has been going strong this year, after developing the strategy and working out the kinks in paper-based and live trading over the last 3 years. So we’ve decided to add a new cow to our growing herd, namely General Electric (GE). For my smaller investors, I needed to find a stock […]

 

BAC Milkings 30 July

Today BAC has moved up slightly and looks like it may eventually close the gap at $25. For now we will roll our 24 strikes up to 24.50 and book some profits. We make $391 on 10 contracts, or $0.39 per share of new profit. This is in about 4 weeks of time, so our […]

 

IWM Milking 31 July

Well, we were right yesterday in our belief that IWM would head lower. We dropped to 145.50 and believe we have support at 145. Because we guessed right in the direction of the move, we were able to bank a lot of lost premium. We have $2322 of profits for the day on 35 positions. […]

 

IWM

IWM has not moved a lot, but we chose to roll from 148 strikes to 147 strikes to slightly improve our theta erosion on the sold options. This is also because technical analysis suggests the stock will move to that level today or tomorrow. If we’re right, doing so now will bring in more overall […]

 

SPY Milkings 31 July

SPY gapped up 4 points this morning on positive earnings reports from the FANG stocks, which represent a big portion of the economy. This placed out positions, centered on $319 in anticipation of a possible drop to support there, deep under water on the call side. Despite that, we were quite profitable on the positions, […]

 

BAC – 28 JULY No Roll Needed

The Gods of Finance are smiling on our BAC positions today. The stock has zigged and zagged and closed within 10 cents of our “fulcrum”, a straddle centered on $24.50. At day’s end we had accumulated another $368 in unrealized earnings, in addition to our $1426 of realized earnings. This represents about 30% of our […]

 
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