My option trades

jeffalvinson · Feb 23, 2012

Quote from jeffalvinson:
02-22-12 11:27 AM
My SPY programmed mechanical system just filled Buy No. 1,
SPY March 136 calls at 1.90.
Now the calls either have to sell at 2.47 or drop to Buy No. 2 at 1.60
with a new sell target at 2.25 for both Buy 1 & Buy 2 calls.
The program output looks like this:
SPY MAR136C:
BUY 1= 1.90 x 1.3 = 2.47 (1 Buy Sell Limit)
BUY 2= 1.60 X 1.4 = 2.25 (2 Buy Sell Limit)
Stop: 1.30

The R/R on these type of trades work out like this:
If Buy 1 fills and hits 2.47 there is a +30% win.
If Buy 2 fills and hits 2.25 there is a +28% win (overall).
If Buy 1 & 2 fills and then get stopped out at 1.30,
there is a -26% loss (overall).

(10 year reliability of this signal type W/L: 70%)

Buy 1 (1.90) filled yesterday and I am waiting for a Buy 2 (1.60)
fill today.
So far today the low on the Mar 36 calls today has been 1.64 and now unfortunately its rebounding before dropping to 1.60.
There's a lot more dollar profit in these trades if both buys (B1 & B2) fill before rebounding.

ryanpatrick · Feb 23, 2012

Jumped into those Deck mar 92.5 calls. The other interesting trade today would be CRM....that one's a real mover everytime, I think spreads would serve best though.

atticus · Feb 23, 2012

Quote from scottandmo:

Sorry, I meant to say bear CALL spread. I tried to edit my post but it was my first one so it was under review and I couldn't change it. I wanted to sell the 16 calls this morning and wait for a pull back to buy back the 12's, but it looks like I don't have the margin requirements to do so. I guess I'll just have to cut my losses cuz I don't think it's going any higher, so I don't want to just buy back the 12's and hold the 16.

Functionally not an issue which you choose. The difference between the two is the box-arbitrage. Maybe a penny or two worse due to it being deep ITM. I don't see the stock approaching $16.

atticus · Feb 24, 2012

Quote from atticus:

Speaking of BIDU. Not recommending a naked position to anyone, but I sold the Mar BIDU 120/150 strangle at 3.06 to open. Vol still needs to come in 500bp.

Out at 1.30.

jeffalvinson · Feb 24, 2012

Quote from jeffalvinson:
02-22-12 11:27 AM
My SPY programmed mechanical system just filled Buy No. 1,
SPY March 136 calls at 1.90.
Now the calls either have to sell at 2.47 or drop to Buy No. 2 at 1.60
with a new sell target at 2.25 for both Buy 1 & Buy 2 calls.
The program output looks like this:
SPY MAR136C:
BUY 1= 1.90 x 1.3 = 2.47 (1 Buy Sell Limit)
BUY 2= 1.60 X 1.4 = 2.25 (2 Buy Sell Limit)
Stop: 1.30

---------------------------------------------------------------------------

With the SPY only a fraction from its 3 year high and realizing it wasn't likely that Buy No. 1 (1.90) was going to hit 2.47 (+30%),
I sold the SPY March 36 calls at a reduced profit goal of 2.28 (+20%) this morning.

babutime · Feb 24, 2012

High Vol note on PCLN

High Implied vol going into earnings next week.

Have been verticle-ing this baby for the past week and a half. Sold a 595/560 weekly vertical that expires today with heavy theta decay.

Very speculative. But I've netted more than $2000 on this over the past week and a half.

For me, thats a ton of money lol...

babutime · Feb 24, 2012

Quote from babutime:

Sold a 595/560 weekly vertical that expires today with heavy theta decay.

Very speculative

Almost s#!t my pants when I just checked the stock

Luckily, I had my positions closed around noon. So no worries

whew!

falconview · Feb 24, 2012

Well I closed both qqq and CIXG on Thursday. Just got tired of it. Today friday, would have made money. Thursday I lost about -$280.

Today late, Friday I am back in IYT and QQQ Puts for a next week exit I hope.

Had to practice money management as I took a loss THURSDAY and dropped back from ten contracts to one contract.

See how it goes this coming week.

scottandmo · Feb 24, 2012

In for 10 May 17.5 calls on CTB. Hope earnings kickstart it's momentum again.

babutime · Feb 24, 2012

Quote from falconview:

Well I closed both qqq and CIXG on Thursday. Just got tired of it. Today friday, would have made money. Thursday I lost about -$280.

Today late, Friday I am back in IYT and QQQ Puts for a next week exit I hope.

Had to practice money management as I took a loss THURSDAY and dropped back from ten contracts to one contract.

See how it goes this coming week.

If you're long contracts and haven't made much money but your original hypothesis might still hold

AND

your capital isn't tied up

AND

you don't have other trades you think you want to make, disregard the "tiredness". Stick to it.

I've held some calls for the past two weeks- keeps moving back and forth so the volatility and a little bit of gain is keeping me alive but other than that its just frustration which "might" burst into a big move.