Recent content by optionatrix

If you don't have margin problems from an early assignment, then possible problems I can think of are pin risk and HTB if you become short the stock.

I trade the SPX. I don't start with the mid. I always look at the (near) equivalent SPY position and closeby positions first, and compare the IVs. There are differences in terms of price, dividend, and exercise style, but the SPY mids gives me a general idea of the price I should put on for...

Yes, 8/9 8/2 37P long calendar. The calendar position was a range play for a short-term pause. If I left my long position on, it would be a straight out bearish call, which I don't want right now.

FB wants to pin @ 38. I sold my long position @ 0.40.

It looked nice in the early AM, but I didn't do anything. Not looking as great now. I'm just thinking to exit the trade sometime today and not to adjust the position at this point.

No offense taken, not logical and it's a fault. Sometimes I don't trade systematically and I modify a position based on gut feel. I looked at the intraday price action and it made me a little uncomfortable. Anyway, right now FB is at 38. It's closer to the breakeven point, and with one day...

Now I have an uneasy feeling that FB might explode either way in the last two days. I should buy a straddle or reverse my position LOL. But I instead decided to take off half the position @ 0.44, and let the other 5 contracts ride, maybe into expiration. I know that 10 contracts to begin with...

Sorry, front two weeks, 37P.

The position is currently at mid 0.37 (from my 0.36). I don't know if I'll exit today or tomorrow. The whole position is small anyway, risking only 10 contracts. I can't disagree that it was a risky, speculative trade, as the skew pointed to a higher move and I also think it could reach 40...

I'm dipping my toe into slightly short FB here with weekly time spread 37P. FB might stall at 38 IPO.

SPY commissions get too expensive for me when I put on 4-leg spreads. I trade more SPX, but usually I have to wait a bit to get filled at the price I want. The problem is when I'm in a rush to hedge/exit or when there's some panic in the market (with wider bid/ask spreads). If I don't want to...

Yes, much better to negotiate when volume was high. I used to trade hundreds of contracts IC each month when I negotiated. I trade less volume now as it was making me uncomfortable, but my commission rate did not change. It was probably easier to negotiate years ago than now. Getting the...

I think it's best to wait until a much higher VIX environment to do this type of trade (e.g. futures backwardation). And then, don't sell puts on this product. You can buy this or the XIV etf, but only short term because management fees are very bad. I prefer doing long put spreads (or short...

Will this trade exclusively on the BOX exchange? I will certainly watch the volumes and the spreads. I suppose any competition to the CBOE SPX is a good thing.

I do use SPXPM. But a lot of my trades are time spreads on weeklies, which SPXPM doesn't have. Some of the time spreads will hit the monthly options, which then becomes different because of the AM expiration for SPX.