Thetagang Options Recap Week of 05-10-21

This was a wild week in the market, downward pressure forced some of my positions ITM (In-The-Money) this week. This pushed my buying power beyond where I felt comfortable. Lately I’ve been running around 40% BP used, mostly due to the end of February and beginning of March lessons learned. However, this week with the sell off my BP expanded to over 57%. Because of this, I wasn’t really able to take advantage of putting on anything new. I had already taken well advantage of the last drop and put on some good June 18 21 expiry positions.

Looking at the existing positions, I could of taken off 5x MSFT 220 PUTs for 5/21/21 expiry which would in small profit and would of freed up over 11,000 in BP. I decided to not take it off and let the theta work for me. You just never know if the market is going to go back up or not. This wasn’t a mistake nor did I regret it. The next few days this position went pretty deep in the RED but was never in danger of being ITM.

I had a few problem childs for 05/14/21 expiry, ARKK, MA, and TSLA. I felt the TSLA position wouldn’t go ITM by Friday, 550 PUT but you just never know. So, I took it off on Thursday (5-13-21) for a gain of 36% ($82). The Mastercard (MA) position was ITM at this point, and looking out at future expirys and strikes, I felt it would a good one to roll. I had a 360 PUT on and was able to buy it back for $-152 loss, roll out to 06-04-21 340 PUT for a credit. Amazing actually. Roll down, and roll out, for a credit to boot! I’ll take this all day long. This gave me some breathing room. Sadly, it ended the day on Friday OTM. This has happened a few time to me over the last several months.

I try my best to make smart decisions on which ones are problematic or likely to end ITM. PINS is a good example. This one I chose to just take off for a loss of $-350 (expiry of 05-28-21) as the long term outlook looked weak IMO.

This brings me to the last problem child. ARKK. I had 2 110 PUTS on and ARKK dropped all the way down to under $100. TSLA and ROKU make up a big part of ARKK. I felt the 110 strike was solid. Looking at a chart it had a pretty good support line there along with TL and also slightly below the 200 EMA.

Well, it ended Friday EOD at about 105. I decided to take the 200 shares despite my “no assignment” strategy. I felt ARKK wouldn’t be a bad one to take at 110. Call premium in the future actually was pretty good. So, I decided to put on 2x 110 CALLs for 05-28-21 expiry @ 1.75. Money in the bank!

HF