My option trades

Wow! What a shocker this morning on SOCA Ryan!

Thank the beejibus that these were paper trades.

Lost on the SOCA 50/52.50 -$90 plus commissions of $12 or total loss of -$102

Lost on the SOCA 47.50/55 -$120 plus the cost of commissions of $12
which totalled the loss at - $132.
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Good experience, but back to the drawing board.:D
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Quote from falconview:

Wow! What a shocker this morning on SOCA Ryan!
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Like I said a post ago:

Quote from babutime:

SODA has the tenacity to do extremely disturbing things to your account if you're net short puts or calls - especially at expiration.

Anybody with a position with unlimited upside or downside risk might get hurt tomorrow.

I personally have a butterfly but looks like I wont do that much better if it really shoots tomorrow- especially on the upside.

If it tanks, I'll take a small hit.spreads...
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I took a small $100 hit.

Edit:

SODA also has a short sale restriction in case some of you were thinking about doing a paper trade and doing a "simulation" of what would happen in case you shorted it.

Well, you can't. Just letting paper traders in ThinkOrSwim know
 
Quote from atticus:

You suggested a short backspread at $0.50 which has unbounded upside risk. Regardless he can't trade a short backspread in a cash account. I really don't understand knocking a fly's wing hedge as suicide when you're suggesting unlimited risk in a short backspread. That's a bit nutty.

Pick a fly that is neutral to the strike you like.
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Didn't know what a backspread was, but I was trying to say that the "short backspread" could be suicide. In other words, why do a "short backspread" when you can just do the same thing as a fly with one more call on the top end.
 
Quote from scottandmo:

Didn't know what a backspread was, but I was trying to say that the "short backspread" could be suicide. In other words, why do a "short backspread" when you can just do the same thing as a fly with one more call on the top end.
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Gotcha, my misunderstanding.
 
Atticus, lets say you were holding the 40/50/60 fly on SODA right now, would you close out the whole thing or just cover the 50's and ride out the others? I suppose that depends on if you're bullish on SODA from now till expiration, but do you typically consider doing something like that or just close it all out at once or is that something you always hold till expiration? What are some other exit strategy's that are used with fly's?

I'm asking mostly because I bought 2 Mar 17 620/630/640 PCLN fly's for $1.5 each and am wondering what my options are if it start's breaking out of that range in either direction.
 
Well my morning is jiggling with trying to bracket the day´s action in the QQQ.

Holding 1 May QQQ 65 PUT at $2.59. Not going anywhere right now. Have a sell order in anyway, but long way from that. Will hold for the time being.

Have an order waiting in queue to buy some 64 Calls at $2.25.

Placed the CALLS order, for 5 contracts, so I can go swimming and not worry about the flutter in the market. See if anything clicks while I tune out?

Got to get back into my bread and butter rythm. Wife just phoned me and wanted to know if I´m making any money yet? Grrrrrr! ( I´m losing, don´t her wanting to know that yet though. :mad: )
 
Quote from falconview:

Well my morning is jiggling with trying to bracket the day´s action in the QQQ.

Holding 1 May QQQ 65 PUT at $2.59. Not going anywhere right now. Have a sell order in anyway, but long way from that. Will hold for the time being.

Have an order waiting in queue to buy some 64 Calls at $2.25.

Placed the CALLS order, for 5 contracts, so I can go swimming and not worry about the flutter in the market. See if anything clicks while I tune out?

Got to get back into my bread and butter rythm. Wife just phoned me and wanted to know if I´m making any money yet? Grrrrrr! ( I´m losing, don´t her wanting to know that yet though. :mad: )
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You bought a MAY Strangle? So you're expecting a $5 move from now to sometime in May on the quids?

Bold move...
 
Quote from scottandmo:

Atticus, lets say you were holding the 40/50/60 fly on SODA right now, would you close out the whole thing or just cover the 50's and ride out the others? I suppose that depends on if you're bullish on SODA from now till expiration, but do you typically consider doing something like that or just close it all out at once or is that something you always hold till expiration? What are some other exit strategy's that are used with fly's?

I'm asking mostly because I bought 2 Mar 17 620/630/640 PCLN fly's for $1.5 each and am wondering what my options are if it start's breaking out of that range in either direction.
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There is very little gamma in the position until you hit neutrality. Outside of the wing-strikes results in long gamma. I would sit tight here and look for a touch of 630 and re-evaluate. Looks like a good trade here.

I had no position in SODA and that was just mentioned in passing. My earnings trades are limited to term-structure trades 4-6 weeks prior to the release. I would've been out at the open on the day after the report.
 
Babu

Not really a strangle. Got rid of the PUT which was a counter trend trade that did not work out. Was one contract. Not sure what they are charging me for this, because the loss with commissions was $38. I bought the one contract at $2.59 and sold at $2.37 This should be a loss of $22 before commissions. I thought the commissions was three dollars each way, or $6. Maybe there is a higher charge for just one contract? Something squirrely here?

Anyway, I´m back in with CALLS, bought 2 contracts for $2.59. At least that is with the trend.
I am trading with tos.

I am trading within what is a choppy go nowhere area here, according to my reading of the market. Though there is an upward slope. I debated going ten contracts, then 5 contracts, but the market is weak and wishy washy, though more or less following the regression line. So, settled on 2 contracts, more for something to do than anything else. Got back from my swim at the beach and re-judged things. Thought I better get out of the PUT, as it wasn´t going to get filled, barring a miracle. Stupid thing for me to do, buying a counter trend trade anyway.
 
well, that was a whole day of reviewing SODA's price action and news. Can't find the swagger, but then again, I should have expected that too.....the price action went the same way as APKT just a few weeks ago where APKT came out with a poor report, traded low in premarket then just popped for a 10% pop in days. Here is SODA with just the opposite of that action. I will hold onto the spread, showing a loss of -460 or so at last check.

Gotta move on, and I didn't want to make some odd trade yesterday so I stayed away from my accounts. I did add FL and BIG calls today for reports tonight and tomorrow night. FL 29 calls at $1.20, and got BIG mar 45 calls at 1.20. About $800 total investment in both, I'm back down to $8600, so a total loss here pushes me back to about $7800 only. I'll take that risk heading into the weekend. Tired though as I took some 12 hours looking at SODA yesterday.
 
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