Newbie's XEO trading journal

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10/21/05

Now I have to deal with IB 535/550/565. I legged out by bought back 550 call first for 0.15 and bought back 550/535 put back for $2.8. It was a stressful day and I was lucky to get out of this one for the profit of 4.2 - 2.8 - 0.15 = $1.35
 
Summary for October XEO result:

Start with loss on 1 570/555 put credit $3.5

Sold 1 IC 545/560/565/580 for credit $7.25

Bought back IC for debit $4.55

Sold 1 IB 535/550/565 for $4.20

Bought back IB for debit $2.95

Total -$3.5 + 7.25 - 4.55 + 4.2 - 2.95 = $0.45. After commissions, my $45 profit is probably around $0.

Overall, I'm satisfy with the break even or a small lost this month consider that the index was down quite a bit. I managed to train myself to wait.
 
10/25/05

Bought back 540 put for $3.3. Made 6.1 - 3.3 = $2.8. XEO drops more so I sold 550 at the end of the day for $5.7.

Now I have 530/550 credit put spread.

As for expectancy, I've positive expectancy after adjustments. I got $2.8 credit extra.

Still looking to sell call credit spread on XEO.
 
Sold 550/560 call credit spread today for $4.50. I should have done 555/565 instead when the index was 553 but I was too greedy.

Summary:

Now I have 530/550/560 unbalance IB. I hope I can trade on this position.
 
They are real at Think or Swim. I was looking at $3000 option courses. Then, Michael Catolico who posted at yahoo option club exaplained to me 4 important things

1. I don't have edge in selling premium or buying premium.

2. Each trade is a negative expectancy but I can build positive expectancy due to adjustment.

3. I have to be a good trader to make money on option trading.

4. Position sizing.

So, I decide that I'd rather trade and learn it this way. We'll see how many months I last before I used up my $3000 tutions.

-Nick

Quote from uninvited_guest:

Are these real trades or paper trading?
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11/02/05

Bought back 550 put for 2.7 (sold for 5.7), Sell 530 put for 0.55 (bought for 3.7).

Buy one extra 550 put for 2.7.

My position is

+550 put, -550, +560 call.

I spent $5.4-0.55=$4.85 today but collected credit $8.1 on the put side and $4.5 on call side. Total credit is $7.75.

The same position open today will be around $4.0 credit. So, on the expectancy side, I'm $3.35 ahead.

Waiting for index to come down hopefully to do something on the put side.
 
Skanan,

Just wanted to say, keep it up. I trade credit spreads on the XEO myself occasionally so might contribute here now and then.

Mostly I can be found rambling nonsense on Phil's SPX Credit spread thread.

Momoney.
 
Thanks! I read some of your post on Coach Phils's trade also.

Quote from momoneythansens:

Skanan,

Just wanted to say, keep it up. I trade credit spreads on the XEO myself occasionally so might contribute here now and then.

Mostly I can be found rambling nonsense on Phil's SPX Credit spread thread.

Momoney.
More...
 
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