Jimbo's Option Spread Journal

I just look for a good chart pattern where stock has been in a rolling pattern between support and resistance points.
Depending on the direction, I like to place a Credit Spread near these points, usually 1-2 strikes out, but the option premiums have to be worth the risk.
I know a lot of people do not use it, but I like to use the CCI (14) as a guide. It is good at pointing out the market direction...
Just throw that on the daily charts and see where it is heading.

I like GOOG just because of the stock movement (and the premiums are nice). 350-340 put spread when the stock has rebounded below 380 level, and 450-460 call spreads when the stock has been above 420.

Just started to trade in the SPX, mainly because of the index has been on a roar since May, and it is due for a break. The CCI has been above +100 for a couple weeks with only one minor pull back, plus Oct has normally been a down month for stocks. I do beleive it will pull back before the OCT Exp. date.
 
Quote from jllm03:

Update...
SPX Spread in-play again.
Sold a 1360 Call again to go with the 1370 call I bought a couple days ago.

5 Options @ 3.0 ($1500 Credit).
Minus $14.99 commissions.

GOOG will have to move quite a bit before I will open that one back up again....

Acct balance as of this morning before the trade $15,325.
More...

Rolled the OCT SPX 1360 c that I was short out at my break-even point. Bought it back @ 3.0, minus commission.
Re sold it again @ 5.5 x5 contracts ($2720 credit after the separate commissions). SPX should have some good profit takers coming in Thursday and Friday to take a little steam out of the market.

Still sitting on the sideline w/ GOOG for now...need another 5-10 points to interest me.

Acct Balance $15,265 after today's commissions.
 
Quote from jllm03:

Rolled the OCT SPX 1360 c that I was short out at my break-even point. Bought it back @ 3.0, minus commission.
Re sold it again @ 5.5 x5 contracts ($2720 credit after the separate commissions). SPX should have some good profit takers coming in Thursday and Friday to take a little steam out of the market.

Still sitting on the sideline w/ GOOG for now...need another 5-10 points to interest me.

Acct Balance $15,265 after today's commissions.
More...

GOOG was up to 419 close today. Will watch to see if it follows thru any higher on monday. If it hits 425, I will be selling the 460 again. 2 weeks left on theta.
Sitting on a small profit on the SPX 1360 /1370 call spread as of today, but I think the market will be backing off before the expiration... remember it's October...normally a profit taking month. Looking for a pull back next week below the 1340 area.
 
Quote from jllm03:

GOOG was up to 419 close today. Will watch to see if it follows thru any higher on monday. If it hits 425, I will be selling the 460 again. 2 weeks left on theta.
Sitting on a small profit on the SPX 1360 /1370 call spread as of today, but I think the market will be backing off before the expiration... remember it's October...normally a profit taking month. Looking for a pull back next week below the 1340 area.
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Back to GOOG again. Sold to Open 5 460 calls @ 4.4 to complete my bear call credit spread. ($2185 credit after comm.).
Two full weeks left to go until EXP. I will close it out if it makes it to the 460 level by then.
 
SPX is kicking my butt today. Was sitting on a small profit waiting for some kind of pullback, but it has not happened. Now sitting with a small loss on my overall SPX trades this month. Going to give it untill late Monday or Tuesday before I call it quits on this spread.
Still waiting for next Friday when the GOOG spread options expire. That should help out...as long as it stays below 460.
 
Quote from Honda:

I think Google reports earnings on Thur 10/19.
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Yep. Totally nuts. They reported on Thursday before expiration earlier in the year too. Could go for some long OTM lottery tickets Thursday PM.

Jimbo has been either incredibly skillful with GOOG over the last couple of months or...incredibly lucky with the timing and direction of moves. Either way, it's working for now! Good job.

Probably best to exit the spread prior to earnings report on Thursday or luck might just run out.

MoMoney.
 
Quote from momoneythansens:

Yep. Totally nuts. They reported on Thursday before expiration earlier in the year too. Could go for some long OTM lottery tickets Thursday PM.

Jimbo has been either incredibly skillful with GOOG over the last couple of months or...incredibly lucky with the timing and direction of moves. Either way, it's working for now! Good job.

Probably best to exit the spread prior to earnings report on Thursday or luck might just run out.

MoMoney.
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Yeah, your right about earnings next week...
"Buy the rumor..sell the News" always in my mind during earnings week. I never carried a stock thru the earnings report.
I mentioned Friday just because of the exp...but I will be out probably late afternoon on Thursday, that is if it does not get too close to the 460 short I have.
I have also entered a stop order to bail out if GOOG hits 460.
That would give me about 35 or so points of working room for it to move next week.
 
Would you do an IC on GOOG? Oct 410/420/430/440 is selling for 7.70. Max loss 2.30. I recall when they reported the day before July expiration. It was a non-event. ATM straddles were selling for about $30 on Thursday, went to 0 by the EOD on Friday.
 
Bailed out of the flaming SPX Spread this morning...
This market just does not want to take a breather....!
BTC the 1360 C @ 9.7 (4.2 debit x 5)
STC the original 1370 C @ 4.8 (3.3 Credit x 5).
After all the separate trades on this, in October Exp. month, I ended up with a negative on the trades of -$69.92.

I will wait for a pull back and then evaluate it again for Nov. possibly try an Iron Condor further OTM.
I have not traded one yet, but have done better with one while paper trading the strategy.

I still have my GOOG options in play for till Thursday, which are in the Green now (2.20 and 1.30 right now).

I will update my account balance after the GOOG trades are closed.
 
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