Getting Paid To Dance With TiNA
Summary
- We were introduced.
- We hit it off.
- Now we are in love!
TiNA and I made it through week 5. (TNA) All trades below.
Week 1:
Week 2:
Weeks 3:
Week 4:
Week 5:
= $205,919.15 in premiums collected to date.
Funds allocated to playing this trade gradually increased over the last 5 weeks and are now:
So that's 58.32% so far or 606.53% annualized. TradingCat says.... zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
All but 120 contracts are currently rolling week to week, (hopefully I can fix that soon) so if the 7/31 rolls are similar to the 7/24 take it ought to grind out ~25.29% return on actual capital invested even if one end (Puts or Calls) is rolled towards the next less risky strike.. Only one side of the trade can be near or ITFM on any given expiration since these are all strangles and not straddles, so that's the side that gets rolled up (Calls) or down (Puts) to reduce exposure.
For example, using next weeks positions, the plan for 7/31 is for this to happen:
TNA closed on 7/24 at $28.77. Let's say that on 7/31 TNA is ~$28.00 then:
- Roll TNA Jul 31 '20 $27 Put -200 to 8/7 $26.50
- Roll TNA Jul 31 '20 $27.50 Put -220 to 8/7 $27.00
- Roll TNA Jul 31 '20 $28 Put -70 to 8/7 $27.50
- Roll TNA Jul 31 '20 $30 Call -50 to 8/7 $30.50
- Roll TNA Jul 31 '20 $31 Call -20 to 8/7 $31.50
- Roll TNA Jul 31 '20 $32 Call -300 to 8/7 $32.00
or let's say it is ~$30.00
- Roll TNA Jul 31 '20 $27 Put -200 to 8/7 $27.00
- Roll TNA Jul 31 '20 $27.50 Put -220 to 8/7 $27.50
- Roll TNA Jul 31 '20 $28 Put -70 to 8/7 $28.00
- Roll TNA Jul 31 '20 $30 Call -50 to 8/7 $31.00
- Roll TNA Jul 31 '20 $31 Call -20 to 8/7 $31.50
- Roll TNA Jul 31 '20 $32 Call -300 to 8/7 $32.00
Etc.
EZ PZ Lemon squeezy!
Will I put every dollar on that lottery number? No, but .... it's tempting.
The other positions I have can pay the monthly bills so if this works for a few weeks I can build up my excess equity and pay down the debts at the same time.
Need some inspiration to join the party?
YRMV
PS: I don't trade on Robinhood and had to look up #YOLO
Analyst's Disclosure: I am/we are long EVERYTHING.
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