So I’m marking off 2023 as ‘complete’, but I have to think about setting up the GTC Sample Portfolio for the first month of 2024.
First of all? Sans any craziness out of the market today for the next 5 hours, our AA Put and SPY Call expire today profitably.
For next month? As we have been doing, we’re taking advantage of these high yields, and annualizing over 5% off the bat, by buying 30 Day Bills each month. So, earlier I put in a call to the Trade Desk to buy Bills off the secondary market. For the GTC Sample Portfolio, this would translate over to buying $58,000.00 worth of 30 day bills bought today with a rate of 5.23%
I try to stuff as many option trades in the beginning of the month as possible? And that would include today.
I was thinking about it? And since I am transposing my thoughts here publicly? I think I’ll tame down the risk a bit. Before, I was selling naked SPY (or in other markets), calls. I think since we are talking about trades publicly, it make be a bit more responsible to talk about such moves in terms of spreads, or verticals; so that we have pre-determined risk on these trades.
While our bias is bullish? We also run multi-strat. And one of those programs is giving me the green-light for bearish bets against the Stock Indices. So instead of selling a naked call this month? We’re looking to sell a spread; or ‘vertical’.
For the GTC Sample Portfolio, this would translate down to selling 1 496 / 500 January 31 Call Option spread (Selling 1 496 Jan 31 Call, and buying 1 Jan 31 Call). IVR was 6.9 at the time. VIX was around 12.82 with a 23% PoT, and the Deltas around 0.10 and an expected range of $488.50 and 33 DTE; for a net of 0.34.
I am attempting to sell a 70/73 Jan 26 UBER Call Spreads for 0.13, and we’ll see if I get filled. For the GTC Sample portfolio? This would be 1 such spread. IVR there at the moment is 6.2, with a VIX around 12.76, and the Deltas around 0.11 and an expected range of $66.00 with 28 DTE. We’ll see if I get filled there.
That’s it for now. I’m thinking about selling puts on USO, but I will need to see a little more action out of the market, before making a play there. And I continue to look for other possible trades.
But for now, setting up trades for January of 2024? That does it. At least for today. I’ll wait to see if I get filled on that UBER call spread.
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