@victor-pereira What is a "bull put"?
In general, if I have a position that has appreciated and ER are coming I would either get out of the way or enter into a hedge to preserve the value in case of adverse move.
Income with Options
SKX is down almost 20% AH. This is setting up for another trade like this before. But let the stock wash out before selling puts.
Skechers (NYSE:SKX) reports comparable store sales increased 3% in Q3.Sales for the international wholesale business were up 18%, while the company-owned global retail business recorded 16% revenue growth. Lower average selling prices led by a 3% drop in the domestic wholesale business.Gross profit rose 40 bps to 45.6% of total sales.Total inventory was up 4.6% Y/Y to $523.3M.The company ended the quarter with working capital of $1.23B."We believe that our international business represents the greatest growth opportunity with many countries continuing to show strong growth in the quarter, including China at just over 50 percent in net sales," says CEO David Weinberg.Looking ahead, Skechers expects Q4 sales of $710M to $735M.Previously: Skechers misses by $0.05, misses on revenue (Oct. 20)SKX -12.82% AH to $20.00
@kingtutty BOT means a debit trade, SLD - credit trade. To open I purchased a diagonal spread long Oct 210 Calls, short Sep9 205 calls for a $3.65 debit when TSLA was below $200. From there on the Oct 210 calls are my core position. Then I seek opportunities to sell weekly options, while I wait for the end of quarter when TSLA announces its car delivery number.
Option Hedging Strategies
@nobo I have been there...he-he. Selling short successfully takes more than a P/E screener.
Commodity Options and Futures
Hedge fund short positions have declined by the equivalent of 1,127 billion cubic feet, or 40 percent, in the last four weeks. By contrast, long positions have risen just 544 billion cubic feet, or 16 percent.
Hedge funds are reacting to signs the gas market is rapidly rebalancing from oversupply in 2015 towards a potential deficit in 2017 (“U.S. natural gas market rebalancing well underway”, Reuters, Sep 16).
Low gas prices have gradually eroded the excess supply by causing production growth to stall and go into reverse while encouraging record consumption by power producers.
Rebalancing has been accelerated by unusually hot weather across the most populous parts of the United States this summer.
F.A.Q. | Announcements
This past Tuesday, August 30th, the CBOE began trading SPY options that expire on Wednesdays. They are “p.m.” options, meaning that they settle at the end of the day on their expiration date. These fall under the general category of “weekly options,” which means they will be listed on a Tuesday, and there will be up to 5 expirations in effect at any one time. Otherwise, they are the same as any other SPY option. The CBOE has said that there was a demand for these Wednesday listings. When I first heard that there was going to be a Wednesday expiration, I thought it was to align a SPY expiration with a $VIX expiration. I thought perhaps there was a need for hedges on SPY and $VIX (such as the ones we often use) to expire at the same time. However, $VIX options expire on Wednesday, with an “a.m.” settlement. So the “p.m.” settlement on the Wednesday SPY options belies my theory. So, I can’t really figure out why there was demand for these Wednesday listings. Regardless, they exist, and they are already trading heavily. Just be careful now when you pull up your SPY option montage that you are indeed trading the option you intended to, as far as the expiration date is concerned.
printed courtesy L. McMillan
SPX Monday-Expiring Weeklys Options to Launch on August 15
CBOE plans to list S&P 500® Index (SPX) Monday-expiring WeeklysSM options, beginning August 15, pending regulatory approval. With the expected introduction of SPX "Monday Weeklys," CBOE will offer SPX Weeklys options (SPXW) with Monday, Wednesday and Friday expirations. CBOE presently offers End-of-Month SPX options which feature expiration dates that fall on the last business day of the month.
SPX Weeklys options are one of CBOE's fastest-growing products. SPX Wednesday-expiring weekly options had record average daily volume of more than 114,000 contracts last month.
Contracts with weekly expirations allow investors to:
• Implement more targeted buying, selling, spreading or hedging strategies
• Trade around breaking news or known economic events
CBOE pioneered short-term options trading in 2005 by introducing the first weekly expiring options contract.
For more information on SPX Weeklys options, please visit www.cboe.com/SPXW.
Still Institutional investors are better informed then crowd. Recent example is the last job report - institutional were buying one day before the job report while the crowd was selling http://www.spreadvectors.com: