18 Jan - so best case would be stock is near 340 at time of opex so I could resell a higher strike short call for juicy premium for earnings week, instead with a week to go the stock was near 330ish and the short call (jan24 340) was at a 78% of max profit winner of $3.47 and only 93cents remaining. just missed out on the 4-5dollar down move at end of day but near 330 I closed the short call and instead bought a 1x2 call ratio spread, buy the Jan24 330 call and sell 2 of the Jan335 calls . that trade for zero. the "2nd" short 335 call is not naked since I have the Jan2022 call still. so its just like having 2 calls spreads. thesis is that for zero cost I have a profit range of 330-340 at opex with max profit of $5 at 335 pin. close out this ratio on jan24 and sell another short call or ration prior to earnings on 29jan depending where stock is at.
---------------------------------------------------------------------------------------------------------------
2 Jan - stock was up +3 on the day back to 330 ish. resold another short call to get the diagonal spread back Sold the Jan24 340call at $4.40. delta 35 . stock at 332 on 3Jan
went with Jan24 opex since its the last weekly prior to earnings on 29jan. selling a opex after earnings youre not getting the decay since the IV is increasing for the earnings. target is 75% of max profit before closing and reselling a weekly for the earnings IV spike.
30 dec - closed the short call today at $1.72 which is a 60% of max profit win. resell another call on an up day. lowered the cost basis of the DITM call for $3+
27 dec - update to my Boeing diagonal spread. since entry 10days ago the CEO has been fired, some more emails surfaced and the stock is up a few bucks to 330ish. my short call is doing its thing and has depreciated 35% and going for $2.80 now. reevaluate after another week as to where to roll the short call with earnings at end of Jan
-------------------------------------------------------------------------------------------------------
17 dec - have to say im about having Phil Lebeau overload but I guess its his beat. Maybe Phil showing up in person on Fast Money marks a bottom in Boeing. my thoughts on the stock. been getting considerable coverage on CNBC with nearly all of it being negative. despite that the stock has been range bound. had the "rumor" yesterday during market hours that they would halt production of the 737 Max and had the down move. the official news came out after hours and I was watching for a flush down 5-10% in order to price out some cash secured put sales.. seems that the big move happened with the rumor during market hours and stock closed in the green today
you've heard the saying about when a stock stops going down on bad news that it might be an indicator of something. was pricing out a 300 short put about 30days out for $3.00+ but instead went with my go-to trade of buying an in the money call (LEAP) and selling a near term upside call making a diagonal spread. also called a poor mans covered call
additionally as mentioned on the Fast Money desk and in the twitterverse that everyone was looking at the 320ish level to hold which seemed to have happened for today at least. margin requirements will differ but in my head I always figure I need to have the full amount of cash available if I am put the stock so instead of committing $30000 for the put sale I went with the diagonal spread for about 25% of the capital requirement. I have an iron condor on in the regular Jan exp options so I went to earlier opex to sell the short call just to keep the strikes and expirations easier to manage
Bought the Jan2022 300 call
Sold the Jan 10, 2020 340 call at $4.30 (32delta)
goal is to sell upside calls bringing in premium while the company and the FAA do their thing to get the planes in the air. would assume that down the road once the grounding is lifted the stock takes off on the news. I expect the stock to move around a bit based on the latest news but have plenty of time since the long call is 2022.
No comments:
Post a Comment