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: PowerShares QQQ / QQQ Option Strategy: [private_monthly]Double Calendar[/private_monthly] Price at trade post: $100.82 Reasoning: Putting on a [private_monthly]double calendar[/private_monthly] on QQQ using the FebWk1 expiration for the short options. This trade’s greeks are: 6.1 Delta, 3.5 Theta, and 33 Vega. If QQQ is still trading at it’s current price by FebWk1 expiration, we’ll look to […]
Stock / Symbol: Russell 2000 / RUT; Option Strategy: [private_monthly]iron condor[/private_monthly]; Price at trade post: $1176.65; Reasoning: With RUT hovering near its 200 day average, I’m putting on a [private_monthly]iron condor[/private_monthly] on RUT. I’m selling the [private_monthly]1040 put and the 1300 call, covering with the 1030 put and 1310 call[/private_monthly]. The trade’s greeks are currently: […]
Stock / Symbol: SPDR Dow Jones Industrial Average / DIA Option Strategy: [private_monthly]double diagonal[/private_monthly]; Price at trade post: $174.67 Reasoning: Between now and the expiration of the FebWk1 options, the standard deviation calculation for DIA puts it in a trading range between [private_monthly]167 to 182. I’m going to use a Double Diagonal[/private_monthly] which has a […]
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: $54.30 Current Position: Long 1 SCTY Jan16 60 call for adjusted net debit of $7.10 per contract Adjustment: With SCTY up 6% since entering the […]
Stock / Symbol: Russell 2000 / RUT; Option Strategy: [private_monthly]bull put spread[/private_monthly]; Trade entry date / price: Dec 12 / $1161 Price at this post: $1198 Reasoning: Thanks to the market’s pop + drop in volatility, we’re up about 8% just a week into the trade. Going to attempt to ring the cash register now […]
Stock / Symbol: Russell 2000 / RUT; Option Strategy: [private_monthly]bull put spread[/private_monthly]; Price at trade post: $1161 Reasoning: With this pullback in the market, I’m putting on a [private_monthly]bull put spread[/private_monthly] on RUT. With an expected deviation of[private_monthly] +/- 83 points between now and January expiration, I’m selling the [private_monthly]1070 puts and covering with the […]
Stock / Symbol: IPATH S&P 500 VIX SHORT TERM / VXX Option Strategy: calendar call spread Trade entry date / price: Nov 21 / $27.88 Price at this post: $28.90 Current Position: Long 3 VXX Jan15 32 calls Short 3 VXX Dec14 32 calls At a net cost of $0.52 per contract Reasoning: With Volatility […]
Stock / Symbol: SPDR S&P500 ETF / SPY Option Strategy: [private_monthly]double calendar[/private_monthly] Trade entry date / price: Nov 20 / $203.92 Price at this post: $203.09 Reasoning: We got in the trade at $1.91 per contract and, thanks to the volatility increase we were looking for, and can now close for a credit of around […]
Stock / Symbol: IPATH S&P 500 VIX SHORT TERM / VXX Option Strategy: [private_monthly]calendar call spread[/private_monthly] Trade entry date / price: Nov 21 / $27.88 Price at this post: $28.50 Current Position: [private_monthly] Long 3 VXX Jan15 32 calls [/private_monthly] Adjustment: Last Friday, our short calls expired worthless, allowing us to capture their full premium. […]