Last pitch fork worked - trying another

donnap said:
Geez, a wee bit of volatility there. Looking better, now.
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Yeah, the combo (PF) is going out at 260 on the day. Gain of 30 handles. These things are great if you know what to look for. Best traded in a PM account.
 
donnap said:
you are essentially short a bunch of NPs now.
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Excuse that comment. Ass backwards. Rather a short combo. It's easy to see that the pressure is now to the upside. Looking a little better for you.
convexx said:
PF gain of 3,400 and a loss of $1,000 on futures.
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edit: Good trade. Not a bad haul since last Friday.
 
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I actually covered most of the NQ after the China-data, but will keep it as-is. I still have some NQ, but not 1:1 as reported.
 
Adjusted Sep SPX pitch fork - do not want to be short SPX here

I entered this pitch fork with hedge on July 23. I could have taken
about $3200 profit after Aug. long puts expired OTM per spread, but
instead I changed the position.

on 23 July sell 1 SPX Sep 18 1910.0 call for 83.50 per spread
on 23 July sell 3 SPX Sep 18 1910.0 put for 16.20 per spread

on 23 July buy 2 Aug 14 2014 1850.0 puts for 2.15 per spread

New position (I am short too many social networking bubble deltas - I
need to learn to hedge with ETFs or stock):

On 18 Aug buy to close 1 SPX Sep 1910.0 call for 67.30 - profit 16.20
loss on option - 4.30

I think I want to be long SPY stock so I left the short 1910 puts and hedged
half short spy. Now long about 360 SPY shares per spread instead of
short 140 SPY deltas.

On 18 Aug sell 300 SPY stock for 197.29
 
vanv0029 said:
Adjusted Sep SPX pitch fork - do not want to be short SPX here

Closed pitch fork

Pitch forks are a great idea especially in a slowly rising market.

Here are the results:

On 23 July sell 1 SPX Sep 18 1910.0 call for 83.50
on 18 Aug buy 1 SPX Sep 18 1910.0 call for 67.30
Profit: 1620

On 23 July sell 3 SPX Sep 18 1910.0 put for 16.20
on 21 Aug buy 3 SPX Sep 18 1910.0 put for 5.10
Profit: 3330

Profit per spread 4950

First hedge was with cheap Aug. puts:

on 23 July buy 2 Aug 14 2014 1850.0 puts for 2.15 per spread
Loss per spread 430

** during worst of Ukraine crisis around Aug 15 pitch fork was down
about 1800 per spread (maybe 1300-1400 with hedge). My thinking was that
if things really got bad I could close the short 1910 Sep call and own
valuable 2 SPX (4 ESU14) per spread.

Second hedge was shorting 300 SPY when short call was closed leaving
at the time 360 SPY shares of long delta.

on 18 Aug sell 300 SPY ETF for 197.29
on 21 Aug buy 300 SPY ETF for 199.37
Loss per spread 621

Total profit: 3899 per spread

** I am not sure about the short SPY hedge because when I closed today,
short 1910 puts were only long 390 SPY shares (13 deltas). Also if
the market had gone down 300 SPY would not have hedged much. Mostly
I can't hedge with underlying because my timing is terrible. Option
hedges do not require such exact timing.

Pitch forks are a great idea because most other option trades are not
working. I think Convexx's approach of trying to take a quick 50% profit
is better but requires good timing.

With only 5 more points of short put premium and 30 days to go and
Fed speeches tomorrow, I decided to close the trade.

I will enter new pitch forks after seeing what happens tomorrow when
the Fed (Yellen) talks. Interest rates can easily be raised which could
easily cause the market to sharply sell off.
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Landis82 said:
I did.
It's been a HUGE WINNER for me and is going a lot higher.
They can earn over $4.00 per share with just a 10% penetration of the addressable market.
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Yeah, good going. You did your homework on that one and it paid big. Impressive trade. Nice piece of fundamental analysis.

I asked because I sold some puts on it the first time it breached 17. Got assigned as it dropped to the 15s. Did the old sell calls against it and close with the conversion. Nice little trade.

Option premium is still pretty high.

Looking back I see it was 17P not 18.
 
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