Stock / Symbol: SPDR S&P500 ETF / SPY Option Strategy: [private_monthly]put calendar spread[/private_monthly] Price at trade post: $200.20 Reasoning: Looking to take advantage of the low volatility, I’m putting on a [private_monthly]put calendar[/private_monthly] on SPY. The greeks going into this trade are: -29.4 delta, -0.1 theta, and 31.7 vega. Using weeklies on the short puts, […]
Stock / Symbol: Russell 2000 / RUT; Option Strategy: bull put spread; Trade entry date / price: Aug 12 / $1141.93 Price at trade exit: $1155.28 Reasoning: Our bull put spread on RUT is already up over 7% after just a few days. No sense in waiting another 30 days or so for the last […]
Stock / Symbol: Russell 2000 / RUT; Option Strategy: [private_monthly]bull put spread[/private_monthly]; Price at trade post: $1141.93 Reasoning: With 38 days till September expiration, I’m putting on a [private_monthly]bull put spread[/private_monthly] on RUT. We have an expected deviation of[private_monthly] +/- 69 points between now and Sep expiration. I’m going to be a little more conservative […]
Stock / Symbol: Tesla Motors / TSLA Option Strategy: double calendar Price at trade entry: $225.75 Price at trade exit: $233.00 Remaining Position: long 1 TSLA AugWk2 245 call short -1 TSLA AugWk1 245 call Reasoning: With Theta negative (at -11), going to close out the remaining call calendar portion of this trade. Closing Trade […]
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: Tesla Motors / TSLA Option Strategy: double calendar Price at trade entry: $225.75 Price at this adjustment: $231 Current Position: long 1 TSLA AugWk2 245 call short -1 TSLA AugWk1 245 call long 1 TSLA AugWk2 205 put short -1 TSLA AugWk1 205 put Reasoning: Not looking like we’ll get enough of […]
Stock / Symbol: Tesla Motors / TSLA Option Strategy: [private_monthly]double calendar[/private_monthly] Price at trade post: $225.75 Reasoning: For TSLA’s earnings announcement on Thursday, the street is expecting a move of +/- 17. To play this, I’m putting on a [private_monthly]double calendar[/private_monthly] with strikes about 20 points OTM. The Greeks currently show a delta of 0.63, […]
Stock / Symbol: Apple Inc / AAPL Option Strategy: [private_monthly]calendar put spread[/private_monthly] Price at trade post: $94.18 Reasoning: Coming into this afternoon’s earnings annuoncement, I’m going to bet that Samsung has eaten into Apple’s iphone revenues and Google/Samsung into Apple’s tablet revenues. Not risking much here as we could just as easily see a positive […]
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 […]