Closing (IRA): ARKK July 16th 92 Short Put... for a .33/contract debit.
Comments: In for 1.94 (See Post Below), out here for .33; 1.61 ($161) profit per contract. I considered rolling out to August, but the 30-day isn't nearly as sexy as it was.
Shortput
Closing (IRA): IWM July 2nd 200 Short Put... for a .33 debit.
Comments: Decided to close this kind of at the last minute ... . With 21 days to go, there wasn't much a ton of juice left to squeeze out of it. Collected a total of 6.55 in credits with rolls and such (See Post Below). Closing here results in 6.22 ($622) of realized gains. Was hoping for some increased implied volatility and a little bit more of a move off of the top of the range to roll into, but didn't get it.
Rolling (IRA): SPY October 15th 307 Short Put to the 355... for a 2.15 credit.
Comments: You know the drill ... . 50% max roll. With the October 15th 307 at >50% max, rolling it up intraexpiry to the strike paying at least 1% of the value of the strike in credit. Total credits collected now 5.82 (See Post Below) + 2.15 = 7.97 versus a current value for the 355 of 3.66, so I've realized gains of 7.97 - 3.66 = 4.31 ($431) so far.
Rolling (IRA): SPY September 17th 324 Short Put to the 372... for a 2.31 credit.
Comments: Part of a longer-dated premium selling strategy ... . With the 324 at >50% max, rolling up to the strike paying at least 1% of the value of the strike. I've collected 6.04 (See Post Below) + 2.31 so far or 8.35 versus the September 17th 372's value of 3.67, so I've realized gains of 8.35 - 3.67 or 4.68 or $468 so far.
Closing (IRA): QQQ July 2nd 294 Short Put... for a .33 debit.
Comments: Profit-taking here on a contract that I did a "window dressing" roll on. (See Post Below). Total of 3.05 collected; out for .33 here; 2.72 ($272) profit with 21 days to go. As with my IWM, I considered rolling, but implied volatility is at the very low end of its 52-week range and 30-day has dropped sub-20.
Closing (IRA): IWM July 2nd 197.5 Short Put... for a .37 debit.
Comments: In for 2.38 (See Post Below), out for .37 here, 2.01 ($201) gross profit with 21 days to go. I considered rolling, but rank/implied is at 1.6/23.5%. The 1.6 means the implied volatility is at the very low end of its 52-week range, and the 23.5% 30-day isn't great, so will wait for weakness and an accompanying volatility pop to consider adding back in. At any rate, still have the July 2nd 200's, July 16th 199's, and the July 23rd 205's yet.
Closing (IRA): ARKG July 16th 61.21 Short Put... for a .23/contract credit.
Comments: Put on when the expiry-specific implied was at 56% (See Post Below), it's crushed in here to 38.8%, so I got movement away from the short put strike + volatility crush. No sense in hanging out another 36 days for the remainder of the extrinsic. In for 1.74; out for .23; 1.51 ($151) profit/contract.
Closing (IRA): IWM June 30th 200 Short Put... for a .31 debit.
Comments: Collected a total of 3.79, (See Post Below). 3.79 - .31 = 3.48 ($348) profit. Closed today rather than rolling, since IWM implied has come in quite a bit; it's currently 22.4% and at the very bottom of its 52-week range. I also still have contracts in the July 2nd weekly, the July 16th monthly, and the July 23rd weekly, so not adding more in July won't kill me.
Closing (IRA): MJ July 18th 18 Short Put... for .14/per contract.
Comments: In for .48 (See Post Below), out for .14. .34 ($34)/contract profit with 39 days to go. No sense in hanging out another 39 days for the remaining .14. Implied is still pretty decent here with 30-day at 44.8%, so may re-up in a bit when an August monthly becomes available, assuming the volatility is still there.
Closing (IRA): IWM June 30th 194 Short Put... for a .33 debit.
Comments: With 26 days to go, taking profit here at 86% max. In for 2.32 (See Post Below), out for .33 here; 1.99 ($199) profit.
Rolling (IRA): SPY December 17th 240 to 297 Short Put... for a 1.75 credit.
Comments: In this particular case, I don't want to extend duration (since it's already ridiculously long-dated as it is), so am just rolling up intraexpiry for a credit at around 50% max. Total credits collected of 3.33 (See Post Below) + 1.75 = 5.08 versus a short put value of 3.03 here, so I've realized a gain of 2.05 ($205) so far.
Rolling (IRA): SPY August 20th 345 to September 17th 358... short put for a 1.94 credit.
Comments: At 50% max, rolling month to month to the strike paying at least 1% of the strike in credit (i.e., the 358 is paying 3.60, which is just a smidge over 1%). Total credits collected of 7.07 (See Post Below) plus 1.94 = 9.01 versus a current short put value of 3.60 = a realized gain of 5.41 ($541) so far.
Rolling (IRA): SPY July 16th 385 Short Put to August 20th 381... for a 2.01 credit.
Comments: With the July 16th 385 approaching 50% max, rolling month to month to the strike that pays at least 1% of the strike in credit. Total credits collected of 14.12 (See Post Below) plus 2.01 = 16.13 versus a value for the August 381 short put of 3.78 or so (i.e., a realized gain of 16.13 - 3.78 or 12.35 ($1235).
Rolling (IRA): QQQ June 30th 288 to July 23rd 305 Short Put... for a 2.22 credit.
Comments: Total credits collected of 3.10 (See Post Below) + 2.22 = 5.32 versus a short put value of 2.32 = a realized gain of 3.00 so far. Previously, I rolled down and out as a "window dressing" roll, but like the idea of being in all three majors (SPY, IWM, and QQQ) to take advantage of some rotational stuff going on, so decided to stay in the play and roll out. Naturally, rolling on a red day or a series of red days would have been more ideal ... .
Rolling (IRA): IWM June 25th 202.5 Short Put to July 23rd 205... for a 1.69 credit.
Comments: Was hoping for a red day here after yesterday's price action, but can't have everything. In any event: with only .58 or so left in the 202.5, rolling out to the July 23rd 16 delta strike at the 205 for a 1.69 credit in lieu of adding units. Total credits collected of 4.12 (See Post Below) + 1.69 or 5.81 versus the 205's current value of around 2.30, so I've realized a gain of 3.50 or so far.
The Week Ahead: ARKK, ARKG, GDXJ, MJ, XBI, XLE, X, CLF, SAVE, FHere's where the premium was at as of Friday's close:
Broad Market Exchange-Traded Funds With 30-Day Implied >20%:
IWM (1/23)
Comments: I have quite a bit of IWM on here, but my order of preference is broad market, then sector, then single name, so am comfortable with adding if we get both weakness and a pop in volatility. IWM/RUT has been fairly rangebound, so it's worthwhile to pop open a chart and see where the bottom of the range is and where any puts you sell are relative to the range between 210 and 235.
Sector Exchange-Traded Funds With 30-Day Implied > 35%:
ARKK (31/45)
ARKG (18/41)
GDXJ (0/40)
MJ (7/40)
XBI (12/38)
XLE (2/36)
Comments: I've got ARKK, ARKG, and MJ July monthlies on, so I may look to add some GDXJ, even though its implied volatility is literally at the bottom of the 52-week range (which is still afflicted by the 2020 pandemic range, so implied volatility rank/percentile aren't all that helpful here), and it isn't exactly weak relative to where it's been. MJ and XBI are currently the most weak out of the group, so I'm personally leaning toward putting on some more XBI, having taken have a June trade last week.
Single Name With 30-Day >50% That Do Not Have Earnings Before Contract Expiry:
X (Steel) (9/74)
CLF (Basic Materials) (18/73)
SAVE (Airlines) (2/55)
F (Autos) (19/55)
OXY (Oil and Gas) (8/53)
SABR (Airlines; Technology) (25/51)
MRO (Oil and Gas) (0/50)
Comments: Given the slim pickings in the broad market and exchange-traded funds space, I've made a list of options highly liquid single name to potentially play while I wait for broad market or sector volatility to return. This list isn't exhaustive, and I've culled out a ton of meme names that have juicy implied volatility but are more likely to become a headache because they're (ironically) too volatile or they're in a space where they're more likely to blow up in my face (e.g., biopharma research and development, crypto).
Pictured here is an X July 16th 22 Short Put (20 delta), paying .74/contract as of Friday close, 3.48% ROC at max/27.6% annualized. As you can see, that play is somewhat close to price action of late, so I'd only put that play on if you're comfortable with potentially taking assignment at 22 and then wheeling it from there. Alternatively, opt for a setup that is consistent with any directional assumption you have as to where U.S. Steel goes from here and that takes advantage of the high implied here.
Closing (IRA): XBI June 18th 115 Short Put... for a .37/contract debit.
Comments: In for 1.50/contract (See Post Below), out for .37/contract here; 1.13 ($113) profit per contract with 21 days to go. It's still somewhat weak here, but implied volatility has crushed into sub-35, which is kind of my exchange-traded fund implied volatility cut-off.
Rolling (IRA): SPY July 16th 367 to August 20th 378... for a 2.56 credit.
Comments: With the July 16th 367 at greater than 50% max, rolling it to the next monthly strike paying at least 1% of the strike price in credit. So far, I've collected 8.75 + 2.56 in credits or 11.31 ($1131) of which 7.39 ($739) is realized gain. It would be better to roll this on a red day or when implied volatility is better, but the goal here is to stay mechanical, rather than trying to collect "ideal" premium each and every roll.
Closing (IRA): IWM June 18th 203 Short Put... for a .49 debit.
Comments: I collected a total of 6.32 in credits with this puppy over time. 6.32 - .48 = 5.84 ($584) in profit.
Closing (IRA): ARKK June 18th 87.96 Short Put... for a .26/contract credit.
Comments: In for 1.94/contract (See Post Below); out for .26/contract with 21 days to go. 1.68 ($168) profit per contract. Still have some July on ... .
Rolling (IRA): QQQ June 25th 300 Short Put to July 2nd 294... for a .04 credit.
Comments: Here, a take profit/window dressing roll. Put on for 3.01 (See Post Below), it's at greater than 50% max here. I want to take profit, but reduce risk by rolling the strike a little bit further away from current price, as well as milk the remaining premium out of the play without extending duration a ton. With the July 2nd 294 worth only 1.42 here, I've realized a gain of 3.01 - 1.42 or 1.59 ($159).
Opening (IRA): MJ July 16th 18 Short Put... for a .48/contract credit.
Comments: 30-day at 40.2%. 2.74% ROC at max as a function of notional risk, no doubt due in part that I had to go in a little bit more aggressive than usual due to the lack of delta granularity from strike to strike. It was either this strike (24 delta) or the 17 (14 delta).
Opening (IRA): ARKK July 16th 92 Short Put... for a 1.94/contract credit.
Comments: Still pretty weak here with fairly high implied volatility (30-day at 46.7%). Selling the 16 delta strike. 2.15% ROC at max as a function of notional risk; 14.8% annualized.
