How long $3000 will last option trading

Bought back AMD APR 35/37.5 put for $1.45.
I sold this for $0.80 so it was a lost of $60.

Bought 6x AMD APR/MAY 35 PUT calendar $0.50.

IV of APR 35 is 65% and May 35 is 45%

I estimate IV of APR 35 to drop to 43% and May 35 to 40%. The profit zone would be when stock is between 32.50 - 38.50.

I'm looking at selling GM MAY 20/22.5 call. I'll probably wait until GM came back a little bit more.
 
I'm glad I cut down my risk by buying all my put spreads back yesterday. Today AMD took a lost from earning result and dropped down from $35 something yesterday to around $32.25 now.

I woke up at 6:30am today to sell my 35 APR/MAY calendar. I bought them yesterday for $0.50. I watched AMD keeps dropping and the calendar had quite wide spread. It went to b/a 50/70 cents at one time. I did not want to full around so I sold them at $0.60 when the stock was around $33. Overall I made $60 from 6 contracts for one night.

In the morning, the vol on APR was around 41% and MAY was 40%.

As of now, AMD is $32.25 with APR/MAY calendar at b/a $0.40/$0.55. Had I been up at my regular hour, I would have not make any profit at all.

I did not make much profit but I'm satisfied that I learned to estimate the profit range from both volatility and underlying price movements.

I also sold naked AMD call on APR $32.5. This one, I set my stop lost to be equal the credit I recieved ($0.85).

Summary of my trades today so far.

SOLD -3 CALENDAR AMD 100 MAY 06/APR 06 35 PUT @.60 ISE, AMD MARK 33.36
SOLD -1 VERTICAL GM 100 MAY 06 20/22.5 CALL @.90 ISE, GM MARK 20.08
SOLD -3 CALENDAR AMD 100 MAY 06/APR 06 35 PUT @.60 ISE, AMD MARK 33.00
 
Quote from skanan:

I'll start out with about $50,000 capital. I intend to allocate about $20,000 maximum. I'll probably trade 1-2 contracts at a time. I plan to spread my entry along time and different strikes as well. I'll monitor overall portfolio Delta, Theta, Gamma, and Vega too.
More...

Clearly some guy who is sharing his wisdom from a book he read, probably talks that BS at social gatherings with a bourbon & branch water in one hand, fat cigar in the other. A scene reminisent of the movie Titanic.
Listen Pal, 3 k is more than enough, only a true MORON would risk 50 k starting out. Don't trade for real until you find something that works papertrading. And then go for it with the full 3 k, the most important thing is to be desciplined with what you've learned papertrading. It helps alot to have an edge, mine is knowing Intraday Market direction and being confident that your belief in the forecasted trend is accurate. I get that info from an expert for a small fee. Oh yea, remember a true pro's #1 concern is keeping the inevitable losses as small as possible. Good luck.

...Rennick out
 
Rennick you haven't kept up:( He started out with $3000 as "tuition" $$$ and now has the confidence to invest more. With options...esp selling credit spreads you do need extra $$ for adjustments etc...very different than ES/daytrading etc.
 
ES, yours were an interesting trade. I'll definitely put something there as I belongs to the have NOTS too.

One more trade today:

Sold SPX 1225/1215 MAY put spread for $0.60.

Nick
 
It was a busy day for me.

Yahoo has earning announcement today afternoon.

The IV on APR 30 put is 91% and MAY 30 put is 42%. I projected both of them to be about 35% after earning. The APR 30 put is at $0.75 and May 30 put is at $1.05. The calendar APR/MAY 30 put calendar is about $0.30. The profit zone is yhoo between $27.69 to $32.95.

The APR/MAY 27.5 put cal is about $0.20 and the profit zone yhoo between $24.78 to $31.07

I bought 2X APR/MAY put cal at $0.35 and 1X APR/MAY put cal at $0.20. Now waiting for the earning.


Bought back 1X mrk APR 25 call for $25 profit.

Bought 2 TSO May 75 call for $2.75 and $2.80

Sold 2X MAY 1340/1350 call ON TOS for $0.90
Sold 1X May 1345/1355 call on TOS for $0.90
Sold 1X May 1345/1355 call on IB for $0.85
Sold 1X May 1345/1355 call on IB for $0.9

Total on SPX
- 9X 1215/1225 MAY put
-1X 1220/1230 May put
-2X 1340/1350 May call
-3X 1345/1355 May call

Edit: yhoo had good earning so I decided to bought 100 shares of yhoo at $32.73 and will close out the calendar spreads tomorrow. I plan to keep 1 may put and sell one OTM call to be collar on yhoo.
 
I'm contemplating putting on EBAY calendar:

APR 37.5 P IV 76.6% project 38% drop
MAY 37.5 P IV 38.27% project 2% drop

APR 40 C IV 71.40% project 35% drop
MAY 40 C IV 36.64% project 1.5% drop

I plan to buy 2 37.5 APR/MAY P and 1 40 APR/MAY call. The profit zone is from $35.48 to $44.
 
APR 19, 2006
Bought 2X 37.5P APR/MAY CAL. $0.65
Bought 1X 42.5C APR/MAY CAL. $0.55

Here is Ebay on APR 20 after earning in early morning. EBAY $37.70

APR 37.5 38.61% .b/a 40/.45,
may 37.5 30.44% b/a 1.25/1.30
May 42.5 30.86% .10/.15
APR 42.5 0/0.5

Here was my projection
APR 37.5 P IV 76.6% project 38% drop
MAY 37.5 P IV 38.27% project 2% drop

APR 40 C IV 71.40% project 35% drop
MAY 40 C IV 36.64% project 1.5% drop

The IV in May loosed more IV than I expected.

Sold 2X 37.5P APR/MAY CAL for $1.30
So this trade is approximately break even. I still have 42.5 MAY call left and probably leave it expire worthless.
 
All of these expire worthless.

1 1260/1265 APR put
-1 1230/1235 APR call
-1 1250/1260 APR put
-1 1335/1345 APR call

I came out a bit positive from April expiration. I'm busy with work so I haven't had chance to tally up the p&l so far yet. I'm still positive though.

Last Trade:
May 1st.

SOLD -1 VERTICAL SPX 100 JUN 06 1250/1240 PUT @1.00 CBOE, SPX MARK 1309.12
 
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