Stock / Symbol: SPDR S&P 500 ETF / SPY Option Strategy: iron condor Trade entry date: Dec 18 Price at trade entry: $144.90 Price at trade exit: $145.10 Reasoning: Closing this position here would bring the Delta of our overall positions closer to even, from -41 up to -7. At this point, we’ve achieved nearly […]
Stock / Symbol: PowerShares QQQ / QQQ Option Strategy: put spread Price at trade post: $64.20 Price at trade exit: $66.97 Reasoning: Upside stop triggered. Closing Trade Details: STC 1 QQQ Jan13 65 put BTC -1 QQQ Jan13 61 put at the market. If you like, try for a limit of the mid – 0.01.(day […]
Stock / Symbol: PowerShares QQQ / QQQ Option Strategy: [private_monthly]put spread[/private_monthly] Price at trade post: $64.20 Reasoning: I’m adding this position to smooth out the greeks on our open positions + give us a bit more protection in the event of a market drop if/when we fly off the fiscal cliff. Our current greeks are: […]
Stock / Symbol: Bank of America / BAC Option Strategy: [private_monthly] diagonal call spread[/private_monthly] Trade entry date: Dec 13 Price at trade entry: $10.55 Price at trade exit: $11.43 Current Position: Long 5 BAC JanWk1 11 calls Short -4 BAC DecWk4 10 calls Reasoning: Well, I was wrong about this one. Although it looked like […]
Stock / Symbol: Russell 2000 / RUT Option Strategy: bear call spread Trade entry date: Dec 19 Price at trade entry: $850.50 Price at this post: $838.80 Current Position: Short -3 RUT Jan13 885 calls Long 3 RUT Jan13 895 calls for a credit of $1.38 per contract. + Long 1 RUT Jan13 900 call […]
Stock / Symbol: Bank of America / BAC Option Strategy: [private_monthly] diagonal call spread[/private_monthly] Price at trade entry: $10.55 Price at this adjustment: $11.27 Adjustment: Buying back one of the short calls to limit losses. Trade Details: [private_monthly] BTC -1 BAC DecWk4 10 call at the market Max Risk: $220 Max Reward: $110 or 50% […]
Stock / Symbol: SPDR Dow Jones Industrial Average / DIA Option Strategy: [private_monthly]iron condor[/private_monthly] Price at trade post: $132.90 Reasoning: Between now and January expiration, the standard deviation calculation for DIA puts it in a trading range between [private_monthly]126 to 138.[/private_monthly] This non-directional trade has a delta of -23, a positive theta of 6.5 and […]
Stock / Symbol: Russell 2000 / RUT Option Strategy: [private_monthly]bear call spread[/private_monthly] Adjustment: didn’t get filled on the 890/900 call spread, so I switched to a 885/895 spread and a 900 protective call Trade Details:[private_monthly] STO -3 RUT Jan13 885 calls BTO 3 RUT Jan13 895 calls for a min net credit of $1.35 per […]
Stock / Symbol: Russell 2000 / RUT Option Strategy: [private_monthly]bear call spread[/private_monthly] Price at trade post: $850.50 Reasoning: With 30 days till January expiration, I’m putting on a [private_monthly] bear call spread[/private_monthly] on RUT. Although the expected deviation is[private_monthly] +/- 47 points between now and January expiration, I think we’re not neutral here and are […]
Stock / Symbol: SPDR S&P 500 ETF / SPY Option Strategy: [private_monthly] iron condor[/private_monthly] Price at trade post: $144.90 Reasoning: With 31 days left till January expiration, we’re putting on an[private_monthly] Iron Condor on SPY to fit between the current standard deviation calculation of +/- 7 from its current price, with a slight downside bias. […]