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Out at 18.07 for a 1.6% return on debit inc. commissions. This trade was just not performing to expectation. AMZN is significantly outperforming the broader market today while I am short delta, and for the three days I have had this on the position has been fighting a rising IV, exactly the...

Don, you might find this recent thread helpful. The OP had a similar question: http://www.elitetrader.com/vb/showthread.php?s=&threadid=277656

Went ahead and closed for a .60 gain (2x theta) in a day, helped by a healthy vola drop today in the stock. 3.1% return on risk inc. commissions. Given my exposure with this and the AMZN fly I decided to go ahead and harvest the gains. Executed by closing the IC at 3.92 and will hold the long...

Absolutely sick. Congrats!

http://www.zerohedge.com/news/2013-09-24/tip-box-fed-made-it-possible-many-people-leak-it

Great to have you on the journal Soon, and good question. I think you hit on the key benefit for me, the added flexibility in managing the trade, as the p/l graphs are basically identical between the flies and the IC. I can take one of the flies or the other off, if the underlying starts to...

Long two overlapping Oct4 TSLA flies: the 155/175/195 in puts from 8.61, and the 175/195/215 in calls from 6.81. Looking for the stock to be somewhat rangebound the rest of this week between the two body strikes. Planning for a 3-day hold but will close early if it hits half of the initial...

Thanks, DP. I saw that you have a very similar position on. Nice call on the VXX fly in your journal, looks like a big winner.

I think there is a surprising amount of "juice" left in near-dated BBRY options given the $9/share tentative buyout offer and that we already had a preview of what Friday's earnings may look like. This trade has a break even range from approximately an 8.20 to 9.30 share price and expires well...

Especially on spreads centered around the ATM strike with a little more distance between the body strikes, the skew might be able to help explain the differential (that may or may not have been true in this case or the effect might have been minimal since the flies were so close together).

Long the AMZN Oct11 285/315/345 call fly from 17.71. VXAZN had a nice pop today, and I think the stock is showing some indecision on the daily chart after hitting a new 52-week high. Looking for a 1.50 gain here. Will close earlier if the position reaches half of initial thetas or if I lose...

Where did he claim that?

Don’t let the perceived negative comments get you down, and realize that though you may misinterpret them folks here are sincerely trying to help you and pass on the fruits of their experience. Your passion and work ethic is inspiring, and I have no doubt that you will be successful. You...

Happy to help. I had accidentally used 30 instead of 40 for the expiration profit calculation, so you are right, at expiration to achieve that return the stock would have to have been around 105, which the stock never reached. The key thing to realize is that when they sold the options there was...

I just looked up the passage in the book. It looks like they bought 80 LEAP contracts (each for 100 shares), at a 40 strike price, for a cost of about $26,000 (80 LEAPS *100 shares/leap * approx. $3.25). At expiration, those contracts break even at a stock price of 43.25, and every 3.25...

Subscribed. Good luck!

Thanks, brother. It's good to be back. I've made a tremendous amount of progress on my sheets and trading plan the last few days and feel confident stepping back in. My biggest changes going forward: focusing almost entirely on volatility rather than directional trading; being much more...

In the identical December position from .77.

Took advantage of the VIX drop today to put on two long overlapping Jan14 flies: the 12/14/16 in puts, and 15/17/19 in calls, from .75 total. I plan to hold these until very close to or through expiration. "The real glory is being knocked to your knees and then coming back. That's real...

It could be that the two spreadsheets in question did not normalize theta to a daily value: -1.6054 / 365 = -.0044