My option trades

adding more SPY 145p (in some @3.80) and 142p right here - gap resolved and pinning at 139-140. of course a good bet is for someone else on here to sell them since my record of going against strong trends is dismal or is it abysmal! Doing the trade for proverbial April correction. But I have been the sucker at the table so far this year.

already in losing -139/+136 SPY spread - basically just entered higher strikes so I can sell more OTM/ATM SPY puts IF market corrects through 1380- 1375 - "hoping" to get as close to neutral as is possible in these present-day option markets (via leg-in process)

also long some NYSE and NDX stocks which will somewhat hedge SPY if market is not ready to plummet/correct just yet, and went long in 401K since October bottom (seriously) but selling some funds on each large leg higher.
 
Quote from falconview:

Iceman, or anybody else into trading.

I´ve got a small dorm, left over from my Hostel runnng days, with a community kitchen. You buy your own food, rent your own car, you are welcome. The dorm has 4 bunk beds and bathroom. My grown grandkids stay there whenever they come. If you are going to go into the Mayan ruin exploration route, underground sacrificial caverns, or offshore diving, snorkeling, sailboat stuff then you probably will need another $500 spending money, for tour entry fees.
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hell - I might take you up on the offer now that my hair is grey! When I first came on ET it was dark brown. lol
 
Quote from jeffalvinson:

Any bets that the SPY makes it up to the Pivot Point (Brown Line)
by the close today? (see attached 5 day chart of SPY pivot points)
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what else is new

but next week is telltale
 
Quote from falconview:

I suppose after a couple of weeks and I get into trading Calendar´s with any success, I shall have to learn how to do risk control through gamma and vega adjusting? At the moment it is just a cloud on the horizon threatening rain.
I haven´t yet a clue!
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NO. No fcuking adjustments. Just choose a strike you think will be touched and buy a calendar at that strike. That's all you have to know. CLOSE it if it trades away from the strike to such an extent that you're no longer comfortable with the trade.

XYZ at 102. Yes, this is a hypothetical. XYZ vol is 30% and you're mildly bullish. You choose a one month calendar (front month 30d to exp).

105 APR call at 3.00
105 MAY call at 4.60

Buy May, sell April for $1.60. Now you know at 30-vol, 30-days and 102 on shares that the May call will be trading at 3.00. So the 1.40 expectancy is the value of theta over the term if you assume static volatility.

YOU WILL EARN as the stock rallies to 105. You will also earn from the long theta. IF the vol rallies you will gain. At 105 on APR exp you can expect to earn a double if vol is sitting at 30% or better.

YOU WILL LOSE if implied vol drops significantly (400bp), OR the stock trades under 97 or above 113.

Choose a strike you think will be touched over the expected holding period. Buy a calendar at that strike if bearish. Buy a fly neutral to that strike if bullish.

Don't you *#^@! dare bring up adjusting gamma or any other greek. Your only concerns are direction, strike-selection and when to cover the trade.
 
The SPY hit the mutha (pivot point = brown line), but so far hasn't held (see attached 5 day SPY pivot point chart).

My SPY option trade is coming back from the dead and is more than half way there. I hope tomorrow doesn't open with another gap down open.
 

Attachments

I´ve heard about IB commissions. Before I do any changing anything I have to learn to trade with success first. With a growing equity balance. That is not true at the moment. Changing horses in mid stream in a raging torrent is not recommended.

Forex forex. I do believe you will get a dip tomorrow morning over in the first two hours. Just my guess.
 
Thankyou ATTICUS

I´ve read it three times already and going to have to read it some more. To absorb the intricacies here. Wish I had brought my printer with me.

The advice not to adjust then, is worth it´s weight in gold I presume?
I´m going to take a break, go do some other errands and re-read this again tonight. See if I get it all.
 
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