1 - Options Trades as Long Term Investments

Martin Mansour Rank: 44 Followers: 16 Votes: 2 Years Member: 12 Last Update: 16 December 2017, 19:05 Categories: Trade Reporting
Market Breadth Analysis

Multi-Part Options Trades. My personal positions & investments.
Get a Price Discount & Reduce Risk -- by combining options and selling some premium.
Options Income Trades - Short Strangles on SPX (/ES futures) when volatility spikes; Lately have been selling premium in the Bond Futures (ZB), Gold (GC) & Oil (CL) because they're less correlated to stocks.
Market Breadth: McClellan Oscillator, Summation Index; $VIX , Put-Call Ratio, Advance-Decline, $TICK, $TRIN.
** FUTURES -- selling premium (short options for income) in Bonds ZB: and Crude Oil CL; some tail-risk hedges are in place.
PORTFOLIO HEDGE: Dec 16, 2017: 1 of these per $27,000 of SPY equivalent portfolio exposure
**Recent Trades:
12/14-15: closed lots of positions:
GOOGL short put spd, SHOP short put spd, JWN long call spd, NTES long call spd, MDT long call, SPWR short put,

Dec 12th: EXITed Bond spread trade pre-FED announcement

Dec 7th: New Positions:
KWEB: (CHINA ETF: TenCent 12%, BABA 10%, BIDU 10%, JD 6% )
BTO Jan 51C @ 5.4
BTO Feb 51C @ 6.1
STO 56/48 Put Spd @ 1.95

REG: Combo: BTO Jan 45C; STO 46P @ .05
IRA: Ratio: BTO 44C (x2) ; STO 47/42 put spd (x1) @ 42.37

Managing existing positions:
SKX Jan 26.67 short puts @ .05
BX Dec short puts
VNQ Jan short put spd
IYR Jan short put spd
LULU Jan long 77.5C @ 1.47
NQ 6300 short put @ 30.00

BX Feb 33 short Put
NQ STO DecWk4 6300P @ 43.50
lots of CL crude oil - closing some Jan expiry (Feb); opening some Feb expiry (Mar)

STO RUT Feb 1400/1600 stangle @ 22.25 (exit order: BTC @ 11.00)
BX: STO put;
WMT - STO 95Put, 98 & 99Calls
SQ: STO Jan 37Put
STMP: STO Feb 160Put

Dec 4th:
Treasury bond spread: Buy Notes /ZN (10 YEAR); Sell Bonds /ZB (30 YEAR)

Nov 30th:
sold FB put spds;
sold NQ (nasdaq 100) puts;
SQ: sold a put, bought an ITM call;
JWN: sold a straddle against previously bought long calls. ('covered straddle')

Nov 29th overnight


! * . Bond Trade: NOB: notes / bonds - Spread Trade

The first two charts are the Notes/Bond trade.

Notes are 10 year government Bonds (ETF: IEF); (Futures: ZN)
Bonds are 30 year government Bonds (ETF: TLT) (Futures: ZB)

NOTES and BONDS are highly correlated. (they trade together over 90% of the time)
When the pair diverge, trade the pair for a reversion to the mean (back to neutral)

*-Dec 4th - NOB trade setting up LONG - will enter today: LONG /ZN; SHORT /ZB

-Nov 16th pre-market: LONG NOB Spread: sold /ZB, bought /ZN
Nov 29th: EXITED

Nov 8th: Bonds (blue line) were much higher than Notes.
-Sold short the Bonds; Bought the Notes
sold /ZB, bought /ZN


! * . Bond Trade: NOB: notes / bonds - Spread Trade2

! * . Bond Trade: NOB: notes / bonds Spread Trade

this chart plots the Notes - the Bonds on one chart.
Long the Spread : buy notes, sell bonds
Short the spread: sell notes, buy bonds
November 8th: I went long the spread
Nov 10th: exited

The Futures trade overnight, so they're easier to trade. (no gaps)
The Futures have a very low capital requirement, and are taxed favorably (60% long term; 40% short term)

! * ..VIX - w/ SPX, VXX & XIV

! * .VIX - 2 Hour

! * .VXN - 2 Hour (Nasdaq VIX)

2 Hour chart of the Nasdaq's VIX. Implied Volatility of 30 DAY options on the $NDX

! * UVXY - 2 hour Candlesticks, 1024

! *$SPX - 1 hour, Correlations: Stocks, Bonds, Yen, Dollar, Gold, Oil. Elder Impulse

2016-2017: Selling Option Premium in Futures: Gold (/GC); Bonds (/ZB); Crude Oil (/CL); S&P's (/ES).
Selling Strangles, Puts & Calls -- Managing the Risk with Delta Hedging.

April12, 2017 - Volatility has been spiking recently. Safe-haven assets; Gold, Bonds, Yen are rallying.

! *$SPX - 10 minute - correlations

! *$VVIX - Daily; 'VIX of the VIX' -- implied volatility of VIX Options

$VIX measures the implied volatility of options on the SPX index

$VVIX (this chart) measures the implied volatility of options on the VIX index - (these are priced off /VX futures).
When this is high people are buying protection with VIX options.

11/18: When Volatility is LOW, I'm buying SPX Calendar Spreads (Delta .40, short 30 day/long 60 day)
exit @ +10%.

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