DITM Options Long(Paper Journal)

M

MoneyMatthew

Hello all,

I am making this journal to publicly forward test a longer term trading strategy that I made. I can sleep easier at night being long a Put than being short the underlying. That is part of the reason why I decided to go with DITM Options.

During my forward testing I will be paper trading. I will never assume a fill at the mid-point. All Buys will lift the Offer and all Sells will hit the Bid.

I will be trading 3 Stocks at a time with each being a 1 lot. I will typically look to be about 30 days from expiration. Based on implied vol I will look at the 60% Probability of Touch. This is not a profit target but a check point to see if I should exit the position.

Let's get it on......
 
Here are my current positions:

TCK
Buy-to-Open 1 November 18th 2016 [$13.00 CALL] @ $7.40 [10/20/2016]
NVDA
Buy-to-Open 1 November 18th 2016 [$60.00 CALL] @ $8.50 [10/20/2016]
ADSK
Buy-to-Open 1 November 18th 2016 [$65.00 CALL] @ $6.85 [10/20/2016]
 
upload_2016-10-20_18-40-59.png


A screen shot of the screener I built, only time can tell if it turns out to be worth anything...
 
MoneyMatthew said:
No problem, will do. I will also show my running P&L. P&L Currently=$0
More...
Just curious if you are buying these based on a directional bias or if your screener was used to find something with the option pricing itself. You don't have to get in to specifics, just curious what is triggering the trades you are taking.
 
The screener is based on a number of things. Directional Bias is a factor among other things. I am not factoring in the option price or trying to put a value on the options in any way. All calculations are based on the underlying price.

I am basically just using ditm options to replace going long or short on a stock. It is easier for me to sleep at night knowing my max risk on a Long PUT vs. being short the underlying.
 
Things are looking great for the NVDA and ADSK CALLs that I bought back on the 20th.

TCK is not losing me money but if TCK does not hit $21.50 by Friday then I will close that position and look to replace it with a different name.
 
I am selling my NVDA November 18th $60 Call. It did its job by hitting the projected 60% probability of touch well ahead of schedule in terms of what implied vol originally said. I am not really trading fundamentals here but I want to take a profit before earnings. I will replace it with a new name sometime next week.

NVDA
Sell-to-Close 1 November 18th 2016 [$60.00 CALL] @ $12.15 [10/28/2016]
Price of Underlying at time of trade=$71.96

Profit=$365.00 Current PNL=+$365.00
Return on Capital=42.94%
 
MoneyMatthew said:
I am selling my NVDA November 18th $60 Call. It did its job by hitting the projected 60% probability of touch well ahead of schedule in terms of what implied vol originally said. I am not really trading fundamentals here but I want to take a profit before earnings. I will replace it with a new name sometime next week.

NVDA
Sell-to-Close 1 November 18th 2016 [$60.00 CALL] @ $12.15 [10/28/2016]
Price of Underlying at time of trade=$71.96

Profit=$365.00 Current PNL=+$365.00
Return on Capital=42.94%
More...
 
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