iceman's options trading journal

Quote from ssternlight:

At current prices -- not target prices of course --, you are spending $2.45 for a 3:1 spread. What's got you so bullish on oil at this point into the end of the year?
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just a trade- didnt even know they were in the oil biz--- :eek:

are they?

((kidding))

have not entered other leg of backspread yet- i.e. Dec 110c - will try to leg in @ or >3.50 per - so far not looking good today. :eek:
 
Quote from iceman1:

just a trade- didnt even know they were in the oil biz--- :eek:

are they?

((kidding))

have not entered other leg of backspread yet- i.e. Dec 110c - will try to leg in @ or >3.50 per - so far not looking good today. :eek:
More...

I'd like to learn from your journal and the fist step would be the rationale/strategy I hope.

Here's what I see. You are going long an 15% OTM 6 week call and looking to partially hedge the debit with a credit if it moves in your direction. Since it is a ratio trade you must be particularly bullish. If my understanding is correct, what's the rationale?
 
Quote from ssternlight:

I'd like to learn from your journal and the fist step would be the rationale/strategy I hope.

Here's what I see. You are going long an 15% OTM 6 week call and looking to partially hedge the debit with a credit if it moves in your direction. Since it is a ratio trade you must be particularly bullish. If my understanding is correct, what's the rationale?
More...

it's a backspread with thoughts that VLO re-tests its highs by year end - and/or trades back near 110 this month - we will see

so far the better trade was puts - duh! :D

it's tough to enter options as we near expiry- unless you have a clear read on how open interest will impact underlying price levels - that was my only concern with this trade at this time.
 
Quote from ssternlight:

I'd like to learn from your journal and the fist step would be the rationale/strategy I hope.

Here's what I see. You are going long an 15% OTM 6 week call and looking to partially hedge the debit with a credit if it moves in your direction. Since it is a ratio trade you must be particularly bullish. If my understanding is correct, what's the rationale?
More...

I am still moderately bullish - but could be wrong - if you think VLO/oil isn't a bullish trade than you should short or buy puts here -

IF I am wrong can always 1. sell a lower strike (i.e. 105) 2. take a .50-60 loss on long call or 3. convert spread into a bear spread and widen it (as aforesaid i.e. + 120/-105-110).
 
Quote from iceman1:

I am still moderately bullish - but could be wrong - if you think VLO/oil isn't a bullish trade than you should short or buy puts here -

IF I am wrong can always 1. sell a lower strike (i.e. 105) 2. take a .50-60 loss on long call or 3. convert spread into a bear spread and widen it (as aforesaid i.e. + 120/-105).
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I actually have no firm opinion whatsoever -- I trade index futuers and have been fooling with options for several years but don't trade them regularly or systematically. I was just trying to understand the risk and rewards of what you are doing as well as the implied bias -- if any.
 
Quote from iceman1:

it's a backspread with thoughts that VLO re-tests its highs by year end - and/or trades back near 110 this month - we will see

so far the better trade was puts - duh! :D

it's tough to enter options as we near expiry- unless you have a clear read on how open interest will impact underlying price levels - that was my only concern with this trade at this time.
More...

VLO 'looks' to have found some "support" at a TL from 10/20-10/28 - wanting to see it reverse the minor trend back to 105 - (not necessarily today :p)

going to recite the trader's prayer for a quick reversal :D
 
Quote from ssternlight:

I was just trying to understand the risk and rewards of what you are doing as well as the implied bias -- if any.
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it's a leveraged directional trade -- rather than buying underlying @ 100+ - the sale of the 110 calls reduces risk and allows for many "options" in managing/repairing expectancy of the trade down the pike.

IF stock was 20-40 I would buy IT instead.
 
Quote from iceman1:

it's a leveraged directional trade -- rather than buying underlying @ 100+
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Thanks,

Seems like you get no juice until 116 and change though -- unless you are able to leg in for a credit. Looks like oil is moving your way for the moment though. :)
 
Quote from iceman1:

VLO 'looks' to have found some "support" at a TL from 10/20-10/28 - wanting to see it reverse the minor trend back to 105 - (not necessarily today :p)

going to recite the trader's prayer for a quick reversal :D
More...

102.50 doable today -- what am I smoking this a.m. ? :eek:
 
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