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Strategies & Market Trends : Option Strategies
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To: robert b furman who wrote (2490)4/18/2023 6:06:19 PM
From: FIFO_kid2  Read Replies (1) of 2591
 
Bob- I had quite a few WAL put contracts due this week at various strikes averaging around a 4% monthly premium in aggregate. I was quite confident the stock had a major backstop as the marked to market book value was $16.80. However, it appears conservatism killed the potential here as I should have just put funds directly into the stock.

MCB also was up in the after hours at 35 so the MCB 2 1/2s puts I have sold looks certain to expire worthless for a 16% gain over 3 weeks and I have to say that has been my most lucrative put option sale in terms of percentage gain especially when considering the stock had to fall 90% in 3 weeks when the put sale was made. While you have to respect Marc Cohodes who is short MCB and who made his short calls of SBNY and SI. It is not very often a bank goes from a high level to absolutely nothing in 3 weeks time especially when the Federal Reserve is now on alert.

Here is the example of my week so far with regard to the short term earnings targets

I sold a few SCHW 45s at .22 on the open Monday after the earnings release that I covered at .01 today. I also sold BAC 26 at .06 before earnings that I covered today at .01. I also sold ALLY 22 at.15 on Monday but likely will not cover it because it is a put that trades in nickel increments. Earnings come out on Wednesday and taking some comfort that the stock is a Warren Buffet holding.

Today I sold AA 36s at .09 FCX 39 at .09 and 39.5 at .11 (I slightly am breaking the rule I set because I wouldn't mind more copper exposure) and TSLA 150 and 152.5 at .18 and .23 respectively. I decided to choose TSLA because it earlier met its production target.

I looked at T and KMI there isn't enough implied volatility applied to those names so the premium didn't hit my target profit. My question to you would KMI be considered treated as a MLP if so 60% of your put sale profit would then be classified as a LTCG
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