Puts and calls

Final score on week 2 of puts and calls. I exposed 14% of the portfolio to covered calls subject to being called away, and 12% of the portfolio to cash covering written puts. That is more than I would want to dedicate to puts and calls generally, but I was over 50% cash and I also was wanting to reduce UPST exposure prior to the ER.
With this large exposure, the premiums received amounted to 0.6% of the portfolio or 2.2% of the shares exposed. When I added more UPST calls on Thursday, the premiums became 0.66% of portfolio. The cash flow was excellent, IMO. Whether the week was a success will be determined Monday and Tuesday. That is, what will the UPST share price be after the ER. At the moment, the numbers don’t lie, whoever was on the other side of the deals doubled or tripled the premium they paid. But, I made the premium on the AFRM puts and calls and the share gain from purchase price to strike price and this amounted to 12.4% for the week, so I am content with that.

66% cash, 10% in UPST. Might sell covered calls on DDOG this week. Anyone notice AYX last week? Looks like up 31% from Tuesday’s open. Bert taking a very subdued victory lap, almost embarrassed to mention it given the YTD carnage. But IT revenue has held up well so far this earnings season.


Back to the well.

Puts and calls on:

STOCK  Put Strike  Call Strike
DDOG     $110         $120
CRWD     $187.5       $202.5
UPST     $25.5        $ 36 

Pretty tight spread on DDOG. UPST still has good premium for $25.50 which is the price at which I had shares called away. Almost $10 spread. I received about 0.9% of portfolio for the one week expiration.