My option trades

[ryanpatrick]

Quote from iceman1:

sounds like you have a decent plan... do you buy front month options, always? If you go out a month or so, does that give you more time to adjust/repair your strategy... and some room for error so you take hit like on PH etc.

It's all front month....My research doesn't go beyond the earning trade. From experience, stocks act much different beyond the earnings scope (2-3 days after earnings are reported). That requires a diferent kind of research, especially on the technical side. In addition, you would have to continuously read in economic news that could affect the broader market too. Only during this earning period does a stock trade on its own.

Example, VMW had strong earnings so its going to trade higher, even though the overall market is very weak this morning as we can see from futures trading pointing to a -60 on dow jones and -8 on sp500. And 75% of stocks do follow the market, the other 25% are usually defensive stocks or those reporting some sort of event.

 

[ryanpatrick]

Bought back vmw feb 95 calls at $1.80 cost -372.95

 

[ForexForex]

Quote from ryanpatrick:

Bought back vmw feb 95 calls at $1.80 cost -372.95

I would have either closed entire position, or let it ride as a spread instead of buying back the short options and keeping the long options. Makes no sense in buying the 95 calls back at this time.

 

[ryanpatrick]

Quote from ForexForex:

I would have either closed entire position, or let it ride as a spread instead of buying back the short options and keeping the long options. Makes no sense in buying the 95 calls back at this time.

Actually my research shows that last 4 quarter VMW has moved more into the direction of the its trend after opening. I have VMW open at +2% and trade up to +9% gain back in Oct-2011, open at 3.48% and trade up to +5% back in July-2011, open +10.5% and trade up to +15% in April-2011, and open at -4.25% and trade down to -6.33% in Jan-2011.

It's not guaranteed, but the odds were clearly on my side when I bought back the short at $1.80 and just sold out the long calls at $6.50. Nice profit of $348.2. Only downside was I paid extra commission, but the extra $200 gain made up for that extra commission. It won't work on all trades, but this one was to my advantage.

Moving on.....TPX like it, love it, actually have the Allure bed pillow top...one heck of a mattress, but you will be paying a whole leg for this thing lol....Mine was on sale for $3995. And that's just the mattress, no bed set, dresser, mirror, or side tables included....Better last 20 years is all I have to say.

 

[iceman1]

Quote from ForexForex:

I would have either closed entire position, or let it ride as a spread instead of buying back the short options and keeping the long options. Makes no sense in buying the 95 calls back at this time.

Ryan,

I agree

maybe you should roll down or at least sell 100c to have 'some' hedge

b.t.w are you in Chicago

 

[iceman1]

any thoughts on buying puts on FFIV here ??

i am scaling into march 125p + 130p

and will sell Feb puts on PB

however chart does look st bullish - so might take some long front calls.

just think market has had a large rally and due for some reasonable correction ever if st trend does not reverse.

 

[ryanpatrick]

Quote from iceman1:

any thoughts on buying puts on FFIV here ??

i am scaling into march 125p + 130p

and will sell Feb puts on PB

however chart does look st bullish - so might take some long front calls.

just think market has had a large rally and due for some reasonable correction ever if st trend does not reverse.

Just a quick look at FFIV, I wouldn't touch the short side here. It just cleared resistance at $120.....it's next target could easily be $130 before correction....ultimately, with the strong fundamental supporting it, I'd expect it to test $145 in 6 months maybe in its next earning report or so.

Anyone playing the AAPL trade? Not going to try and guess this one I have no research on it recently but it'd be interesting to see how everyone else does on this trad tonight.

 

[TraderBoy23]

Anyone playing the AAPL trade? Not going to try and guess this one I have no research on it recently but it'd be interesting to see how everyone else does on this trad tonight. [/B][/QUOTE]


I might do some put spreads on it. But I'm not sure yet-- not sure if I wanna get in front of apple after 4s launch/holiday season.

 

[iceman1]

Quote from ryanpatrick:

Just a quick look at FFIV, I wouldn't touch the short side here. It just cleared resistance at $120.....it's next target could easily be $130 before correction....ultimately, with the strong fundamental supporting it, I'd expect it to test $145 in 6 months maybe in its next earning report or so.

Anyone playing the AAPL trade? Not going to try and guess this one I have no research on it recently but it'd be interesting to see how everyone else does on this trad tonight.

i agree it has upside - but it may sell off first is my hunch - chart 'looks' more bullish however

bought march 125p
sold feb 115p

order working to buy Feb 125c

 

[ryanpatrick]

Quote from iceman1:

i agree it has upside - but it may sell off first is my hunch - chart 'looks' more bullish however

bought march 125p
sold feb 115p

order working to buy Feb 125c

NICE, let me know how that one turns out....

I also added 2 PII 65 calls at $1.55....my trades are all front month and even weeklys where possible. I like PII now after reviewing HOG's results....the off road and two wheeler trade might work well this time around. I did get burn buying PII shares last time around.

Also have 3 tpx feb 65 calls at 2.50 and 2 IBM feb 190 call at 3.25....about $1900 in cash left.