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2022 Q1 Trades

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nobatmanjokes
Posts: 99
(@nobatmanjokes)
Trusted Member
Joined: 2 years ago

Puts today were safe, as were my lower risk bond holdings…but those muni CEFs are taking a bit of a dip!

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2 Replies
earlyretirementnow.com
(@earlyretirementnowcom)
Joined: 6 years ago

Member
Posts: 294

@nobatmanjokes Same here.

The Preferreds are holding up all right but the Muni CEF got hammered. Geez!

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nobatmanjokes
(@nobatmanjokes)
Joined: 2 years ago

Trusted Member
Posts: 99

@earlyretirementnowcom I’m certainly no muni bond expert but I would have thought the Puerto Rico deal would have been good for these funds. Guess not!

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NavyPack
Posts: 182
(@navypack)
Estimable Member
Joined: 2 years ago

Make sure your selling for any Tax Loss Harvesting on your CEF shares.

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mpaziran
Posts: 17
(@mpaziran)
Active Member
Joined: 1 year ago

Wow! Amazing volatility today. Never thought I'd see 2 delta at $2.00+.

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NavyPack
Posts: 182
(@navypack)
Estimable Member
Joined: 2 years ago

Wild day!  Sold the 3650 Put on the Wednesday close for $2.65 @ 1:11 Eastern

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4 Replies
nobatmanjokes
(@nobatmanjokes)
Joined: 2 years ago

Trusted Member
Posts: 99

@navypack I sold 3350 right around then for half that price. Recently increased leverage and cut my premium target as I’m in the awkward phase between contracts.

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bginburg
(@bginburg)
Joined: 11 months ago

Active Member
Posts: 14

@nobatmanjokes One thing I've done when between contracts is to use ES and MES contracts to trim my leverage.  There is a little more commission drag due to this and MES only has Friday expiries, no M/W, but still an option (no pun intended).

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nobatmanjokes
(@nobatmanjokes)
Joined: 2 years ago

Trusted Member
Posts: 99

@bginburg that’s another good idea! In the last 6 months I’ve been tying my premium target to my leverage a bit more, good to hear other ways to do that

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NavyPack
(@navypack)
Joined: 2 years ago

Estimable Member
Posts: 182

@nobatmanjokes I'm trying to be slightly more aggressive after getting busted (Friday close) when VIX is high.  

In normal times, my plan is as follows...

Single Contract Delta  = 75 / 9-day VIX

Total Delta = (Account Size / Single contract Need) * single Contract Delta

==============

Target Delta  = 75 / 37.2 = 2.02

Single contract Need = 4356 * 100 / 2.8 = 155k

Account Size = 285k (made up)

Total Delta = (285k/155k)*2.02 = 3.70

I then either get 1 contact with higher risk (3.70 delta) or 2 contracts with lower risk (1.85 delta).

I do look at other factors like FOMC dates, largest 2-day drop in last 90 days, etc.

Thoughts?

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earlyretirementnow.com
Posts: 294
Admin
Topic starter
(@earlyretirementnowcom)
Member
Joined: 6 years ago

Well, nice volatile week. I sold 2DTE options all under 4000. And occasionally a same-day or 1DTE a little close to the spot. 

Thanks to the Fed for shaking things up!

I had three minor losses during this month but should be almost back to 0 for the month if my strikes for the rest of the month hold up.

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