atticus' "ship it" vol trading journal

Doobs789 · Sep 19, 2012

Quote from atticus:

Oct 25/35/45 fly for 3.00 or better. Not to only reco flies, but you have no choice here. Too much overhead so 35 should contain it, and the fly will remain bid down to 25-26.

A virtual vol-lock here with the fly. 2.75 mid on the calls.

You serious? I wasn't. Seems a tad risky. But hey you're up so far.

atticus · Sep 19, 2012

Quote from Doobs789:

You serious? I wasn't. Seems a tad risky. But hey you're up so far.

I am doing it small.

Doobs789 · Sep 19, 2012

Quote from atticus:

I am doing it small.

Fair enough, I'll play. I might put something back on in AAPL, I still like being short a few deltas there.

atticus · Sep 19, 2012

Quote from Doobs789:

Fair enough, I'll play. I might put something back on in AAPL, I still like being short a few deltas there.

Why not wait until the new weeklies tomorrow? Sell a 700C for Oct to get some skin on the game until tomorrow's open.

Daal · Sep 19, 2012

Quote from atticus:

I think you trade with IBTWS right?

QCOR -> stock

Then quote the fly:

QCOR -> combinations -> option combos -> ("strategy" template) -> butterfly -> calls -> start with 25 strike in first box. 35 in middle, last box will populate with 45C.

You buy the call fly by clicking the offer and entering limit price. Go a dime or 0.15 above mid.

I'm thinking the stock has a good chance of bouncing hard like BPT and EDU did a while back. This would lose if the stock traded around 35 and 45 no?

Doobs789 · Sep 19, 2012

Quote from atticus:

Why not wait until the new weeklies tomorrow?

Yeah good idea. A little too much gamma in regular Sep for my taste.

Also, taking a shot here; short ES at 1457

atticus · Sep 19, 2012

Quote from Daal:

I'm thinking the stock has a good chance of bouncing hard like BPT and EDU did a while back. This would lose if the stock traded around 35 and 45 no?

I don't see much risk of a close over $35, but vols will drop massively. You actually have a pick-em here on vega vs. delta risk.

jtrader33 · Sep 19, 2012

Quote from atticus:

Oct 25/35/45 fly for 3.00

In at 3.00. Got burnt on this f-er in one of my intraday MR strats earlier today, so it owes me...

atticus · Sep 19, 2012

Quote from bs2167:

In at 3.00. Got burnt on this f-er in one of my intraday MR strats earlier today, so it owes me...

I think you'll get 4.00 by Tuesday.

Daal · Sep 19, 2012

Quote from atticus:

I don't see much risk of a close over $35, but vols will drop massively. You actually have a pick-em here on vega vs. delta risk.

So you bought 1 25C sold 2 35C and bought 1 45C for a net credit because you believe any rally will be muted to tomorrow but IV will tank enabling you to sell the position soon at profit?