Art of Options

Naked /ZB  put it is: DATE TIME DESCRIPTION Misc Fees Commissions & Fees AMOUNT 12/31/2019 14:41:16 SOLD -1 /ZBH20:XCBT 1/1000 JAN 20 (Friday) (Wk3) /ZB3F20:XCBT 150 PUT @0''03 -0.82 -2.25 46.88

All-in against the witches of Wall Street with SPX AM Call options spread. DATE TIME DESCRIPTION Misc Fees Commissions & Fees AMOUNT 12/19/2019 12:34:42 SOLD -29 VERTICAL SPX 100 20 DEC 19 [AM] 3225/3235 CALL @.20 -0.34 -37.7 580

The bull market is strong. However, selling far OTM call spreads works fine. DATE TIME DESCRIPTION Misc Fees Commissions & Fees AMOUNT 12/17/2019 12:30:06 SOLD -28 VERTICAL SPX 100 (Weeklys) 18 DEC 19 3230/3240 CALL @.10 -0.34 -36.4 280

Again it is all-in trading with SPX credit options spreads. DATE TIME DESCRIPTION Misc Fees Commissions & Fees AMOUNT 12/16/2019 13:08:42 SOLD -14 VERTICAL SPX 100 (Weeklys) 16 DEC 19 3210/3230 CALL @.10 -0.16 -18.2 140

Contrarians look to buy or sell against prevailing trends. For example,  when bearishness dominates investor sentiment, perhaps it’s time to consider increasing your equity exposure. Contrarian trading isn’t easy. The question is: how to measure investor sentiment? One objective measure of whether the sentiment is bullish or bearish is given by the P/C ratio— total put options volume relative to call options volume.  When P/C ratio is at extremes, price reversals can occur. A trader doesn’t have to be an options trader to potentially benefit from its insights. Think or Swim allows you to plot the Put/Call Ratio, to view the following data: $PCALL: All of the listed stocks $PCI: The Dow Jones Industrial Average $PCRL: The stocks in the Russell 2000 $PCSP: The stocks in the S&P 500® $PCND: The stocks in the NASDAQ® 100 The figures below show the case when P/C ratio caught the mid-term trend reversal of SP500 on 6/4/19.

Standing up to the bull market doesn't mean you have to have a physical fight with them by shorting stocks. Most of the time, you don't have to fight. There are almost always more effective ways to deal with it — SPX credit options spread. DATE TIME DESCRIPTION Misc Fees Commissions & Fees AMOUNT 12/12/2019 10:42:58 SOLD -14 VERTICAL SPX 100 (Weeklys) 13 DEC 19 3205/3225 CALL @.30 -0.16 -18.2 420

Settlement  The SPX index is Cash Settled , meaning if an option expires ITM your account will be amended by the difference of the settlement value and the strike of the option. A.M. Expiration  SPX options contract has a specific expiration date and time . SPX options are considered A.M. when the time of expiration is in the morning. Not understanding the A.M. settlement process may result in a significant capital loss. A.M. options stop trading Thursday but are settled only next Friday morning. Friday's opening prints of all SPX stocks are taken to calculate the SPX opening print known as SET . Any existing option positions are then Cash Settled using SET as the settlement value.  To avoid the risk of overnight price changes it is advised to close out your SPX A.M. options position on Thursday before the expiration. P.M. expiration  SPX options that expire at the close of the market regular hours , 4:00 PM ET, are considered P.M. The closing print from all

This trade is /NG (natural gas) credit put options spread: DATE TIME DESCRIPTION Misc Fees Commissions & Fees AMOUNT 12/9/2019 13:00:50 SOLD -1 /NGF20:XNYM 1/10000 JAN 20 (Financial) /LNEF20:XNYM 1.95 PUT @.016 -1.51 -2.25 160 12/9/2019 13:01:45 BOT +1 /NGF20:XNYM 1/10000 JAN 20 (Financial) /LNEF20:XNYM 1.7 PUT @.001 -1.51 -2.25 -10

All-in via SPX Credit options spreads : DATE TIME DESCRIPTION Misc Fees Commissions & Fees AMOUNT 12/6/2019 12:16:36 SOLD -27 VERTICAL SPX 100 (Weeklys) 6 DEC 19 3165/3175 CALL @.10 -0.32 -35.1 270

First thing when you wake up to see it gaped down is 'Credit options Call spreads'. DATE TIME DESCRIPTION Misc Fees Commissions & Fees AMOUNT 12/2/2019 10:34:02 SOLD -27 VERTICAL SPX 100 (Weeklys) 2 DEC 19 3150/3160 CALL @.10 -0.32 -35.1 270