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Puts today were safe, as were my lower risk bond holdings…but those muni CEFs are taking a bit of a dip!
@nobatmanjokes Same here.
The Preferreds are holding up all right but the Muni CEF got hammered. Geez!
@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!
Make sure your selling for any Tax Loss Harvesting on your CEF shares.
Wow! Amazing volatility today. Never thought I'd see 2 delta at $2.00+.
Wild day! Sold the 3650 Put on the Wednesday close for $2.65 @ 1:11 Eastern
@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.
@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).
@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
@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?
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.