The tl/dr is:
+$605.58
Tuesday, May 22, 2018
Another winner. What's for dinner?
No need to complete the collar when the funds are there waiting for the taking, so take them I did. See completed collar tab for details. Should I start another one? Why not?!
The tl/dr is:
The tl/dr is:
Thursday, May 17, 2018
Half is better than nothing
Closed the reverse collar (described in previous post) before expiration. See this page for details. Don't be afraid to click on it. It's just the completed collar rundown page. Or if you are suspicious or wary about clicking on links, just navigate your own darn self up to the link above and feel accomplished at pressing your finger directly there, to get to the same place and view the details.
I bought back the puts, I sold off the calls. The shares didn't exactly go over the falls...
[end poem]
... so I just covered them.
I bought back the puts, I sold off the calls. The shares didn't exactly go over the falls...
[end poem]
... so I just covered them.
Monday, May 14, 2018
How to make $1,000 in three easy steps
Would you like a $1,000 paycheck in one week while doing basically nothing to earn it? Well, nothing's free, so you'll have to pay with your nerves, at least for a little while, and that means you'll have to put something at risk, initially. But what if you could construct it so that you know what you'll lose, worst case, and then construct it further so that you won't lose anything, if you're unlucky enough that you're passed over on the day the paychecks are handed out? Would you like to try for $1,000 or nothing? Follow along with what I did.
Step 1: Buy 20 UVXY calls at the 12.00 strike, May 18th expiration for $0.75 each. The multiplier is 100, so this will cost you $1,500.
Step 2: Sell 2,000 shares of UVXY short at 12.30. This requires enough margin to be permitted to do that.
Step 3: Sell short 20 UVXY puts at the 11.50 strike, May 18th expiration for $0.45 each. This will bring in $900.
You've now only effectively paid $600 for the options (setting the credit received for the puts against the cost of the calls), and you have thirty cents of profit you could reap on the shares, if you actually exercised those calls to cover the shares at the strike of 12.00, which comes out to $600 coming in to offset the price paid, so that's all you'll see, worst-case. A total wash, with zero paid and zero lost.
Yet, should things go your way, you'll see a profit of up to $1,000. Should UVXY end up below your put strike price, and the shares end up put to you, you'd use them to cover your short, so that's 12.30 minus 11.50, or a $1,600 profit on the shares, and as detailed above, you paid $600 for the combo of puts/calls.
Max loss: $0
Max gain: $1,000
Expiration date: May 18th
Step 1: Buy 20 UVXY calls at the 12.00 strike, May 18th expiration for $0.75 each. The multiplier is 100, so this will cost you $1,500.
Step 2: Sell 2,000 shares of UVXY short at 12.30. This requires enough margin to be permitted to do that.
Step 3: Sell short 20 UVXY puts at the 11.50 strike, May 18th expiration for $0.45 each. This will bring in $900.
You've now only effectively paid $600 for the options (setting the credit received for the puts against the cost of the calls), and you have thirty cents of profit you could reap on the shares, if you actually exercised those calls to cover the shares at the strike of 12.00, which comes out to $600 coming in to offset the price paid, so that's all you'll see, worst-case. A total wash, with zero paid and zero lost.
Yet, should things go your way, you'll see a profit of up to $1,000. Should UVXY end up below your put strike price, and the shares end up put to you, you'd use them to cover your short, so that's 12.30 minus 11.50, or a $1,600 profit on the shares, and as detailed above, you paid $600 for the combo of puts/calls.
Max loss: $0
Max gain: $1,000
Expiration date: May 18th
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