My option trades

iceman1 · Apr 30, 2012

anyone gonna take a position in GMCR?

earnings 5/2 after

traderlux · Apr 30, 2012

Quote from iceman1:

anyone gonna take a position in GMCR?

earnings 5/2 after

....bull put credit spread....gmcr $48.73, options pricing in $7.62 move....

.....wkly exp may 4, 39/41put, $41 cr, possible 26% return....

Jerkstore · May 1, 2012

Quote from atticus:

I don't have easy access to the pure vol-line, so I would take the vanilla calendar, buying v, short g.

I think we could see IV go to 2200 with RV above, so it's not a slam dunk. Purely discretionary here, but I quote all of the 121 flies and 1:1 calendars in excel descending in strike-width. I also plot a 30-day running OTC fly (theo) based upon the listed vol+skew and eyeball it. I pull vol from a peak to trough var figure as well. I have cells with 5-day running historical fly prices and some averages. If the bias hits a threshold I go to index vol to neutralize.

The sheet re-calcs every 5mins with the neutral fly:

Spot605

595/605/615... fly mid...weekly...monthly...30d modeled OTC...day5, 4, 3, 2, 1; var-imp. vola.
590/605/620...
585/605/625, etc.

I do the same with the calendars. I can price vol from premium within 100bp on the stocks I follow closely. Not all the time, but I quiz myself and if I am off I will hesitate to pull the trigger. A strong directional signal will trump any vol-bias I may have. IOW, I may short vol into a bear prediction if I am short sufficient delta.

Your method of over/under value determination is more sophisticated than many of the market making companies out there.

I particularly like the concept of watching var ranges. We do this in many different ways to watch outright vols, expiry vols, calendars, as well as skews...

babutime · May 1, 2012

Quote from Jerkstore:

Your method of over/under value determination is more sophisticated than many of the market making companies out there.

I particularly like the concept of watching var ranges. We do this in many different ways to watch outright vols, expiry vols, calendars, as well as skews...

That particular post of atticus' was so over my head I didn't even know what to ask... I'm guessing atticus' approach is more like that of a market maker as opposed to a retail trader?

...

ryanpatrick · May 1, 2012

Quote from iceman1:

Ryan

where art thou

The market showed topping signs in late March, I started following and trading AAPL short term positions dropped my account from $10000 to $8100. Took out about $6800 from account for family emergency (mom has cancer). Haven't traded since early April, and just logged back on today.

I have $1,224.81 remaining after visiting my family out west. Guess, today's a fine day to return if not yesterday.

I'm still jet lagged (in terms of earning trading)....so I'm still catching up. I can see that healthcare has been down, some cloud stocks are solid, restaurants are mixed as usual, the AAPL economy was strong CRUS busted out. I just got the list for this week.....I'm looking at V and WFM for calls and EL for puts.

Not in any positions yet.....and WOW, the thread is overblown, feels like so many different threads put into one.

By the way, seems like I missed out on 100 pages.

Doobs789 · May 1, 2012

Quote from babutime:

That particular post of atticus' was so over my head I didn't even know what to ask... I'm guessing atticus' approach is more like that of a market maker as opposed to a retail trader?

...

His method seems like a good approach to organize vol skew in a way that makes it easier to eyeball the data and price vol.

It must be easier to do using IB. With TOS I find it hard to pull prices/vols for customized positions in one shot (of course with a floating ATM middle strike day to day).

PBateman7 · May 1, 2012

had a few extra bucks laying around and decided to mess around with some options. Im really just an equities trader but im looking to switch things up a bit

Anyone have preference of trading index options over equity options??

Doobs789 · May 1, 2012

Quote from PBateman7:

had a few extra bucks laying around and decided to mess around with some options. Im really just an equities trader but im looking to switch things up a bit

Anyone have preference of trading index options over equity options??

I'd make sure you have a solid understanding of options before you start messing around with them. If not, your money will disappear pretty fast.

kinggyppo · May 1, 2012

Quote from ryanpatrick:

The market showed topping signs in late March, I started following and trading AAPL short term positions dropped my account from $10000 to $8100. Took out about $6800 from account for family emergency (mom has cancer). Haven't traded since early April, and just logged back on today.

I have $1,224.81 remaining after visiting my family out west. Guess, today's a fine day to return if not yesterday.

I'm still jet lagged (in terms of earning trading)....so I'm still catching up. I can see that healthcare has been down, some cloud stocks are solid, restaurants are mixed as usual, the AAPL economy was strong CRUS busted out. I just got the list for this week.....I'm looking at V and WFM for calls and EL for puts.

Not in any positions yet.....and WOW, the thread is overblown, feels like so many different threads put into one.

By the way, seems like I missed out on 100 pages.

sorry to hear that welcome back..........good trading.

PBateman7 · May 1, 2012

Quote from Doobs789:

I'd make sure you have a solid understanding of options before you start messing around with them. If not, your money will disappear pretty fast.

im not going into it blind but im no where close to where i am on the equities side. Takes money to make money right. im not going to dive in head first and go nuts but rather test a few strategies do some hedging things like that.