Jimbo's Option Spread Journal
- Thread starter jllm03
- Start date
Opened up Bull-Put Credit spread today on AGIX.
This stock was once a high flyer, and has recently been beaten down below $10.
They have a pending Drug approval coming up soon.
Most of the "talking" is that it will not be until sometime in Mar.
Either way it has taken off the last two days and option volume has increased dramatically.
I am going to play this on the lower side.
BTO 25 Jan 5.0 puts @ .25. (debit $625)
STO 25 Jan 7.5 puts @ .75 (Credit $1,875)
Minus commissions of $75.00
Stock today closed up at $11.90 ($12.50 HOD)
This spread will give me a breakeven point @ exp. of $7.00.
The way it is trading and from all the new reports, this drug should have a good chance of getting the go ahead.
People were buying up the high strike calls today 50, 60, ranges.
This stock was once a high flyer, and has recently been beaten down below $10.
They have a pending Drug approval coming up soon.
Most of the "talking" is that it will not be until sometime in Mar.
Either way it has taken off the last two days and option volume has increased dramatically.
I am going to play this on the lower side.
BTO 25 Jan 5.0 puts @ .25. (debit $625)
STO 25 Jan 7.5 puts @ .75 (Credit $1,875)
Minus commissions of $75.00
Stock today closed up at $11.90 ($12.50 HOD)
This spread will give me a breakeven point @ exp. of $7.00.
The way it is trading and from all the new reports, this drug should have a good chance of getting the go ahead.
People were buying up the high strike calls today 50, 60, ranges.
UPDATE......
AGIX said that the results of the study will probably be late 1st. QTR...so the Jan. options tanked this morning.
I closed out the short side of the trade and pocketed the profits.
BTC 25 Jan 7.5 Puts@ .05 (debit $287 with comm.)
I am going to leave the 5 puts up to see if the7.5 option may bounce back up a little, and do it again.
Took advantage of the Rolling pattern in the NDX for the past couple days...
I flipped a couple NDX puts this morning for a quick profit of about $1000.
Here's the scoop...
BTO 4 Jan NDYMP 1800 puts @ 1510.
Turned around about 20 mins later and...
STC 4 NDYMP 1800 puts @ 1780.
That is $1,050 profit in 20 min time, after the $30 commissions.
Done with this for the day. Walking away...
I have been "paper trading this for a week to see what the time frame of the dips and peaks are in the mornings.
New account balance update...
$16,070.00
I still have open AGIX Jan 5 puts (long), but they are worthless after the drop in the Jan options yesterday.
I flipped a couple NDX puts this morning for a quick profit of about $1000.
Here's the scoop...
BTO 4 Jan NDYMP 1800 puts @ 1510.
Turned around about 20 mins later and...
STC 4 NDYMP 1800 puts @ 1780.
That is $1,050 profit in 20 min time, after the $30 commissions.
Done with this for the day. Walking away...
I have been "paper trading this for a week to see what the time frame of the dips and peaks are in the mornings.
New account balance update...
$16,070.00
I still have open AGIX Jan 5 puts (long), but they are worthless after the drop in the Jan options yesterday.
Love this market...NDX.
Well, I waited for the right pattern to repeat again today.
Nice Gap up on the open signaled that a nice run was in the making.
This time I waited to see how much above the old all time high it would go. When the CCI was starting to look tired after the high was made I moved in.
Did this again for another nice profit. Holding time was about an hour or so.
BTO 5 Jan .NDYMX 1830 puts @ 11.80 (debit $5,914.95)
STC 5 Jan .NDYMX 1830 puts @ 14.00 (credit $ 6,985.05)
Profit of $1,070.10 ....18% ROI today.
Acct. Update: $17,140.
I closed it out at a comfortable level and not wanting to get greedy...(option went to 15.66 right after I closed it).
But a profit in hand is always better that a loss.
I am going to watch this again on Friday.
There should be some profit taking going on, new 6 Year high, along with the long weekend. It has to look JUST right before I will try it again.
Well, I waited for the right pattern to repeat again today.
Nice Gap up on the open signaled that a nice run was in the making.
This time I waited to see how much above the old all time high it would go. When the CCI was starting to look tired after the high was made I moved in.
Did this again for another nice profit. Holding time was about an hour or so.
BTO 5 Jan .NDYMX 1830 puts @ 11.80 (debit $5,914.95)
STC 5 Jan .NDYMX 1830 puts @ 14.00 (credit $ 6,985.05)
Profit of $1,070.10 ....18% ROI today.
Acct. Update: $17,140.
I closed it out at a comfortable level and not wanting to get greedy...(option went to 15.66 right after I closed it).
But a profit in hand is always better that a loss.
I am going to watch this again on Friday.
There should be some profit taking going on, new 6 Year high, along with the long weekend. It has to look JUST right before I will try it again.
Quote from Goddard:
Hi, jllm03
Can you please elaborate more on how you find those NDX trades? This seems like daytrading options
Looks nice though
I have deviated from the original intent of the Journal (Spreads) for this week. Since the spread that I put on for the month..AGIX...pretty much cashed out 2 weeks early, I am utilizing the NDX options for some quick hit and run plays.
Look at the NDX 1 min chart. over several days there are repeatable patterns for entry and exit. Great daily movement in the options prices.
Usually a dip after the open 9:45 or so...
Morning highs are usually around 10:45 to 11:00 time frame...
There seem to be a pull back around the lunch hour...
After lunch.. it can go either way...
Just have to look at the charts and take what it gives you.
Yesterday I waited to see how far it would go after taking out the 52+ week high. I just kept follow it up so I could buy the nearest ATM put strike. I try to not stay in it for no more that an hour or so.
That is all I am doing
Have not updated this since Thursday, but here it is...
Friday followed the same pattern.
BTO 5 Jan 1850 puts @ 15.80 (Debit $7,914.99 debit).
STC 5 Jan 1850 puts @ 17.20 (Credit $8,585.01)
Profit $670.02 (8.4 % ROI)
This morning...same thing...same time frames.
BTO 3 Jan 1850 calls @ 7.80 (Debit $2,354.99)
STC 3 Jan 1850 calls @ 9.30 (credit $2,775.01)
Profit of $420.02 (17.8% ROI)
Account balance update...
$18,230.00
Very good month. Well exceeded the normal goal of $1000 per month. Going to take a break for a couple days and start to look for some more spreads for the Feb expiration that will be coming up.
I do not want to do this all the time...the money is great, but I really do not like "Owning" options. Rather selling them for the credit instead.Quote from Goddard:
Hi, jllm03
How are you doing on your NDX trades?
Oh, seems you just wrote an update
Very impressive indeed. I don't have intraday historical quotes for Nasdaq, but have you considered backtesting your strategy for a year or someth? Would be quite interesting to do.
All I did is the just look at the 1 min chart for the day, then look at the High/Low spread of the options that is nearest ATM.
It is just a "Hit and Run" tactic ONLY.
With the NDX you have a pattern that seems to repeat. Along with the price movement on the options, I just had to take advantage of it.