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Delta Variant Made For Interesting Option Trading Results For 2021 3rd Quarter

Oct. 01, 2021 7:30 AM ETCBRL, LUV, AMGN, ABBV, BP, WTW, OKE, PNC, VXF, NHI, WH, ARCC, FM26 Comments


  • As the quarter proceeded, so did concerns about the ill effects the COVID-19 Delta variant was having on the health of the world’s population and economic activity.
  • Two stocks perceived to be most affected by the Delta variant performed poorly and resulted in those Put trades being exercised against me (LUV and SLB).
  • August presented two opportunities to profitably exit trades.  I included a section on the thoughts behind my actions related to both positions.
  • This article covers all the option trades I made during the 3rd quarter of 2021.  I also cover a new option strategy I used. Overall, it was a good quarter.
Closeup Of Risk And Benefit Wooden Blocks On Seesaw
AndreyPopov/iStock via Getty Images


Data by YCharts

Two factors help set option premium levels, interest rates and market volatility. Of course, a stock's volatility is what matters. Interest rates, having declined from early 2021, did not move much during the third quarter, ending about where they started. While market volatility rose

This article was written by

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Build sustainable portfolio income with premium dividend yields up to 10%.

I have both a BS and MBA in Finance. I have been individual investor since the early 1980s and have a seven-figure portfolio.  I was a data analyst for a pension manager for thirty years until I retired July of 2019. My initial articles related to my experience in prepping for and being in retirement. Now I will comment on our holdings in our various accounts. Most holdings are in CEFs, ETFs, some BDCs and a few REITs. I write Put options for income generation. Contributing author for Hoya Capital Income Builder

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CBRL, SLB, LUV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I also have open option positions in the list shown in the article

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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