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Shortput

Rolling (IRA): SPY November 19th 401 to March 18th 348 Short Put... for a 2.76 credit. Comments: With only .72 of extrinsic left in the November 19th 401, cleaning up my longer-dated premium selling strategy in SPY by rolling out to the March 348 -- the strike that's paying at least 1% of the strike in credit. I've collected 13.31 (See Post Below) + 2.76 with this roll for a total of 16.07 so far relative to a value for the 348 of 3.49, so I've realized gains of 16.07 - 3.49 or 12.58 ($1258). Ordinarily, I would've just rolled it out a month, but the 16 delta strike in December is paying <1% of the strike price, so opted to "leap frog" this over short puts I already have on in the December, January, and February monthlies.
AMEX:SPY
by NaughtyPines
Rolling (IRA): SPY November 19th 379 to December 17th 388 SP*... for a 2.21 credit. Comments: Part of a longer-dated strategy to keep maximal buying power deployed, even in "locally" (i.e., <45 days until expiry) low implied volatility environments. Here, the November 17th 379 is at 50% max, so rolling it out to the strike in December paying at least 1% of the strike in credit which is the 388, paying 3.96. Up to this point, I've collected a total of 13.19 (See Post Below) in credits. With this roll, I've collected 13.19 + 2.21 = 15.40 relative to the December 17th 388 short put value of 3.96, so I've realized gains of 11.44 ($1144) so far. * -- Short Put
AMEX:SPY
by NaughtyPines
Trade Idea: SPRT October 15th 10 Short Put30-day implied volatility is at a whopping 280%. A trade idea with a ridiculous return on capital at max, regardless of whether you strip naked (i.e., short put) or spread it. Metrics: Notional Risk: $784 Max Profit: $216 ROC at Max as a Function of Notional Risk: 27.6% ROC at 50% Max as a Function of Notional Risk: 13.8% Break Even/Cost Basis in Stock if Assigned: 7.84 Comments: I'm not usually fond of meme stocks, but when I can potentially get 27.6% by selling a 50% out of the money put, well, I just might dip my toe in. As a potential variation, consider spreading it by buying the October 15th 3 for .08 and selling the 10 for 2.16, resulting in a 7-wide that you're getting paid 2.08 for on a buying power effect of 4.92 -- a max profit ROC potential of 42.3%. Point in fact, I kind of like the spread better for defining the risk on a reduced buying power effect. * -- October 15th expiry as of Friday's close.
SLong
by NaughtyPines
2
Rolling (IRA): SPY October 15th 391 Short Put to Feb 18th 335... for a 2.29 credit. Comments: Part of a longer-dated strategy intended to keep maximal buying power deployed even when "local" (i.e., <45 days until expiry implied volatility) kind of sucks. With the October 15th 391 worth only 1.13, cleaning up my SPY short put ladder by rolling this out to the February strike paying at least 1% of the strike price in credit (which happens to be the 335, paying 3.41). Total credits collected of 15.74 + 2.29 = 18.03 versus a short put value of 3.41, so I've realized gains of 18.03 - 3.41 = 14.62 ($1462) so far.
AMEX:SPY
by NaughtyPines