Thursday, October 1, 2020

New Trades

The trades today include 2 Jade Lizards, which are similar to Seagulls. They both consist of a CSP plus a call spread. The Seagull is a CSP plus a Bull Call Debit Spread and a Jade Lizard is a CSP plus a Bear Call Credit Spread. The risk profiles are also similar except a Seagull has more profit on the upside and a Jade Lizard has more profit on the downside.

The following Cash Secured Put (CSP) positions were established today. All prices include TD commissions.

StockPriceOptStrikeOTMProbOTMExpDateDaysMarginPremiumROIAROI
XLB $63.49 P $60.00 -5.50% 83% 10/16/2020 15$6,000.00 $33.48 0.56% 13.58%
XLI $76.88 P $73.00 -5.05% 83% 10/16/2020 15$7,300.00 $41.48 0.57% 13.83%
XLK $117.84 P $110.00 -6.65% 83% 10/16/2020 15$11,000.00 $77.48 0.70% 17.14%

The following Seagull (CSP + Bull Call Debit Spread) positions were established today. All prices include TD commissions.

Profit if all options are OTM at expiration (i.e above the short put and below the long call).

Stock Strikes ExpDate Days ProbOTM Margin P/L ROI AROI
QQQ 265/282/284 10/16/2020 15 80% $26,500.00 $88.45 0.33% 8.12%
SPY 265/282/284 10/16/2020 15 80% $32,000.00 $93.45 0.29% 7.11%

Profit if both call options are ITM at expiration (i.e above the short call).

Stock Strikes ExpDate Days ProbITM Margin P/L ROI AROI
QQQ 265/282/284 10/16/2020 21 55% $26,500.00 $288.45 1.09% 18.92%
QQQ 265/282/284 10/16/2020 21 55% $32,000.00 $293.45 0.92% 15.94%

The following Jade Lizard (CSP + Bear Call Credit Spread) positions were established today. All prices include TD commissions.

Profit if all options are OTM at expiration (i.e above the short put and below the long call).

Stock Strikes ExpDate Days ProbOTM Margin P/L ROI AROI
QQQ 265/290/291 10/16/2020 15 80% $26,500.00 $227.45 0.86% 20.89%
SPY 265/290/291 10/16/2020 15 80% $32,000.00 $226.45 0.71% 17.22%

Profit if both call options are ITM at expiration (i.e above the short call).

Stock Strikes ExpDate Days ProbITM Margin P/L ROI AROI
QQQ 265/290/291 10/16/2020 21 70% $26,500.00 $127.45 0.48% 8.36%
QQQ 265/290/291 10/16/2020 21 70% $32,000.00 $126.45 0.40% 6.87%