Hey guys, just thought it would be cool to post my trades and to possibly receive feedback from you guys.
I understand the theory behind the volatility and implied volatility (standard deviations etc), however I don't really have a formula to predict vol (would like to know what you recommend for readings so I can learn). I understand the general effects of vol on price and some of the greeks. I have general knowledge of it and what some of them do, however, considering that these are not constant values and change daily, I find it hard to rely on them as a predictor, unless you can accurately predict the direction they're heading in. I also understand some of the basic strategies.
Anyway my trades for february are as follows:
*note* I used implied volatility with the standard deviation formula to pick my strikes, when I first placed the trades. Some I had to convert into other trades. I also pick my credit spreads on the basis that the IV percentile is around 40% or higher.
Total margin requirement: $2310
-2 BBRY feb 28 10.00 Put +0.1
+4 BBRY feb 28 10.5 Call -0.35
-4 BBRY feb 28 11.00 Call +0.07
-2 BBRY feb 28 9.00 Put +0.03
net loss: -0.86
*thinking of exercising the 10.5 contract, giving me a cost basis of 10.71. Then turning it into a covered call at strike 12.00 @$0.50. Reducing cost basis to $10.2
+1 BBRY jun 21 10.00 Call -1.83
-1 BBRY jun 21 12.00 Call +.98
net debit: 0.90
potential profit: $110.
**bullish on blackberry so i figured a bull call spread would work. (is there a way to do a bull call credit spread?) I've been looking and I cant seem to find one.
+1 BBRY jun 21 7.00 Put -0.28
-1 BBRY jun 21 8.00 Put +0.52
net credit: $0.24
**did this to supplement the bull call spread.
-2 BBRY mar 21 13.00 Call +0.06
-2 BBRY mar 21 14.00 Call +0.07
net credit: 0.13
**this was 1.5-2STD move at the time. From what I remember.
-1 BKS mar 21 14.00 Put +0.13
-1 BKS mar 21 23.00 Call + 0.14
**naked strangle, around 1 STD OTM (
-1 GRPN mar 21 11.00 Call +0.04
-1 GRPN Mar 21 6.00 Put +0.04
net credit: 0.08
naked strangle, at least 1 STD OTM near a support/resistance level.
+9 IAG Jan 15 5.00 Call -1.08
(this was a mistake of mine) Trying to change this to a synthetic covered call. Kind of hard.
+1 VIX JUL 14.00 Put -0.61
-1 VIX JUL 15.00 Put+ 1.08
net credit: 0.47
**Bullish on the VIX
looking to put a bull credit spread of some sort. If possible.
Anyway these are my trades! I will be posting every month.
I understand the theory behind the volatility and implied volatility (standard deviations etc), however I don't really have a formula to predict vol (would like to know what you recommend for readings so I can learn). I understand the general effects of vol on price and some of the greeks. I have general knowledge of it and what some of them do, however, considering that these are not constant values and change daily, I find it hard to rely on them as a predictor, unless you can accurately predict the direction they're heading in. I also understand some of the basic strategies.
Anyway my trades for february are as follows:
*note* I used implied volatility with the standard deviation formula to pick my strikes, when I first placed the trades. Some I had to convert into other trades. I also pick my credit spreads on the basis that the IV percentile is around 40% or higher.
Total margin requirement: $2310
-2 BBRY feb 28 10.00 Put +0.1
+4 BBRY feb 28 10.5 Call -0.35
-4 BBRY feb 28 11.00 Call +0.07
-2 BBRY feb 28 9.00 Put +0.03
net loss: -0.86
*thinking of exercising the 10.5 contract, giving me a cost basis of 10.71. Then turning it into a covered call at strike 12.00 @$0.50. Reducing cost basis to $10.2
+1 BBRY jun 21 10.00 Call -1.83
-1 BBRY jun 21 12.00 Call +.98
net debit: 0.90
potential profit: $110.
**bullish on blackberry so i figured a bull call spread would work. (is there a way to do a bull call credit spread?) I've been looking and I cant seem to find one.
+1 BBRY jun 21 7.00 Put -0.28
-1 BBRY jun 21 8.00 Put +0.52
net credit: $0.24
**did this to supplement the bull call spread.
-2 BBRY mar 21 13.00 Call +0.06
-2 BBRY mar 21 14.00 Call +0.07
net credit: 0.13
**this was 1.5-2STD move at the time. From what I remember.
-1 BKS mar 21 14.00 Put +0.13
-1 BKS mar 21 23.00 Call + 0.14
**naked strangle, around 1 STD OTM (
-1 GRPN mar 21 11.00 Call +0.04
-1 GRPN Mar 21 6.00 Put +0.04
net credit: 0.08
naked strangle, at least 1 STD OTM near a support/resistance level.
+9 IAG Jan 15 5.00 Call -1.08
(this was a mistake of mine) Trying to change this to a synthetic covered call. Kind of hard.
+1 VIX JUL 14.00 Put -0.61
-1 VIX JUL 15.00 Put+ 1.08
net credit: 0.47
**Bullish on the VIX
looking to put a bull credit spread of some sort. If possible.
Anyway these are my trades! I will be posting every month.