With IV so low, I've had a hard time finding good premiums on the short strangles. The good premiums, as Justin so aptly pointed out, seem to gap like crazy--surprise market makers.
Here are a few candidates I'm looking at for short IV plays next week:
EP, JPSU, NILE, IGT, SBUX, and A.
Haven't priced them yet. I'll update when I do.
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Go VIX! I may lay off the SS pre-earnings for awhile, seems like we may have a bumpy road ahead with these wild swings in the market. I let my bear out of his cage and got into FAZ and SRS early this week-doing great so far!
ReplyDeleteafter Fridays rise in the VIX maybe the premiums will be a little better next week
ReplyDeleteShawnta don't forget WFMI....
ReplyDeleteHere are my orders tomorrow:
ReplyDeleteJDSU
-1 Mar 7p
+1 Nov 6p
1.15 credit
+5 Nov 6c .20/ea
SBUX (in cash account)
-1 Apr 23c
-1 Apr 15p
1.49 credit
SBUX (in IRA)
-1 Apr 21p
+1 Nov 19p
2.39 credit
+3 Nov 18p .35/ea
IGT
-1 Apr 22.5c
-1 Apr 14p
1.60 credit
So how are these working out for you Shawnta?
ReplyDeleteJDSU
ReplyDeletein for 1.07 credit--out for 1.10 debit--net loss of 0.03. However, I made .10 on each of my 5 calls. So, net on the trade is a 0.47 gain.
SBUX (in cash)
in for 1.49 credit-out for 1.54 debit--loss of 0.05. The earnings date and the conference call were on different days, so I got confused...I exited a day too early--way dumb. But I caught the mistake before exiting the trade in my IRA.
SBUX (in IRA)
in for 2.39 credit--out for 2.22 debit. So I made 0.17 on this inverted calendar. However, I was speculative on the 3 puts--loosing 0.27 on each. so net the trade was -0.64.
IGT
in for 1.60 credit-out for 1.93 debit--loss of 0.33.
Very pathetic!!! Hope your strangles went better
Actually, I had 2 JDSU trades...one made .10 on each call...the other .15 on each call. I placed the trades at the same time (but in different accounts). Once the lower bid was met, the higher bid got filled--kind of nice.
ReplyDeleteAlso, I'm still in the inv calendar in my cash account. I'm down 0.50, but make take profit on the short put to get a free put into expiration...So, because I made .50 on the 5 calls, and about .43 on the -1 Mar 7p, I've made 0.93...now, because my Nov 6p was purchased for 0.51, I can close the short leg of the trade an be guaranteed to make .42 (that is, 0.93-0.51). Does that make sense?