Update: I incorrectly said to “STO” the short calls, I should have said “BTC”. The corrected order is: Trade Adjustment Details:[private_monthly] STC 2 BAC Jan16 10 calls BTC -2 BAC MarWk1 16 calls for a min net credit of $5.65 per contract (day order, limit order).
Stock Symbol: FaceBook / FB; Option Strategy: [private_monthly]diagonal call spread[/private_monthly]; Price at this post: $80.65; Reasoning: Putting on a slightly long delta trade on FB here with the idea of generating weekly / monthly income. Current greeks are: 23.5 delta, 2.8 theta, and 23.1 vega Trade Details:[private_monthly] BTO 1 FB Jan16 80 call STO 1 […]
Stock / Symbol: Bank of America / BAC Option Strategy: [private_monthly]diagonal call spread[/private_monthly] Trade entry date / price: 22 Jan / $15.82 Price at this adjustment: $16.07 Reasoning: We were able to capture nearly all of the premium on the calls we sold. Rolling the short calls to calls expiring on March 6th and a […]
Stock / Symbol: United States Oil Fund / USO Price at trade post: $18.95 Option Strategy: [private_monthly]diagonal call spread[/private_monthly] Reasoning: With USO down nearly 50% from it’s high back in August, I’m putting on a delta positive and theta positive trade on USO using a [private_monthly]Jan16 expiration call for the long leg[/private_monthly]. Greeks going into […]
Stock / Symbol: Bank of America / BAC Option Strategy: [private_monthly]diagonal call spread[/private_monthly] Price at trade post: $15.82 Reasoning: Here’s a positive Delta trade on BAC using an ITM diagonal. Similar to a covered call but with higher upside potential. This trade has a delta of 130, a theta of 0.7 and a vega of […]
Stock / Symbol: Solar City Corp / SCTY Option Strategy: [private_monthly]calendar call spread / diagonal call spread[/private_monthly] Trade entry date / price: Nov 7 / $51.30 Price at this post: $56.76 Adjustment: SCTY has moved up nicely but we were still able to allow the short Nov expiration call expire worthless. We’re currently up about […]
Stock / Symbol: Bank of America / BAC Option Strategy: diagonal call spread Price at trade post: $15.74 Price at this post: $14.90 Reasoning: Downsie stop level hit. Closing out here. Closing Trade Details: STC 2 BAC Jan15 12 calls BTC -2 BAC Aug14 16 calls for a min net credit of $3.00 per contract […]
Stock / Symbol: Bank of America / BAC Option Strategy: [private_monthly]diagonal call spread[/private_monthly] Price at trade post: $15.74 Reasoning: Here’s a bullish play on BAC following this morning’s earnings announcement. As there isn’t much premium in BAC’s options, an ITM diagonal is a nice way to generate some decent yield with similar risk characteristics to […]
Stock / Symbol: Apple Inc / AAPL Option Strategy: diagonal call spread Trade entry date / price: Jan 23 / $555 Price at trade post: $527.60 Current Position: [private_monthly] Long 2 AAPL 10(Mini) Jan15 525 calls Short -1 AAPL 10(Mini) Mar14 525 call at a net cost of $41.31 per mini contract [/private_monthly] Reasoning: Although […]
Stock / Symbol: Apple Inc / AAPL Option Strategy: [private_monthly]diagonal call spread[/private_monthly] Trade entry date / price: Jan 23 / $555 Price at trade post: $558 Current Position: [private_monthly] Long 2 AAPL 10(Mini) Jan15 525 calls Short -1 AAPL 10(Mini) MarWk1 530 call at a net cost of $46 per mini contract [/private_monthly] Adjustment: Rolling […]