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Dan

An expiry and a diagonal rollover

TLDR; BHP covered calls - rollover expired. PLTR - sold puts - diagonal rollout two weeks. Now, I haven't posted in a little while - two reasons for that. First, is that I was waiting for the previous trades to expire. 63 and 38 days respectively. The second reason will be in another post. First for BHP:


So I thought I'd be fine writing a 46.51 strike considering the previous activity. BHP hadn't gone near 46.50 in months so it looked like decent resistance. On the other hand it did gap up the day before I wrote... Anyway, as luck would have it those calls were in the money for nearly the entire 63 days the contract was open, but as these were European options, it's only the expiry date that matters, and it so happens that the BHP price dropped in the 2 weeks leading up to expiry. Looking for an opportunity to write some more now. Next is PLTR: This one wasn't as favourable as the BHP trade.




Again, we were close to 17, and bouncing from it for a few weeks, so I thought a short trade would be likely to expire OTM. Turns out that while it did almost go in my favour in the final days... those last two went ITM again. It's not a total disaster, ok I essentially only received an 11c premium for the first trade, which netted me around $720aud (remember that was just over $5k received initially, so gave most of that back. But the second trade brought in another credit of $1.28. Looking at the two together I received 74c + 65c (image is wrong and says 0.57c), or you could say I received 11c + $1.28. Total is the same either way. $1.39 premium received across the two trades. Keep in mind that I don't mind owning PLTR if it comes to it. I just had an idea that it might go a little lower so I reduced the strike and collected a bit more premium. Combined, it's a premium of just under $10k aud. That's an estimate because the PLTR trades are all in USD. So I did a rough divide by 0.67 for those numbers.

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