OEX weekly options

Michael

Yesterday I did get my credit spread in. So we wait on the results of that tomorrow.

I also put on another long CALLS trade in the morning that reversed on apparently a false signal. I held it through the day, and decided to put on another trade in calls, when I get the signal again. This time it worked okay and this morning I got out of both long positions.

5 CALLS 535 Nov. @ 8.90 Sold this morning at 9.20 ( paper trade )

5 CALLS 530 Nov. @10.30 Sold this morning at 12.10 TOS TRADE

I feel confident enough now to do these long option trades in the monthlies in the TOS web based account. That is going to keep me honest as to results, I hope! ( grin )

Still holding the credit spread in PUTS wont finish until tomorrow if I am lucky.

The two long trades earned NET + 114
and NET +864

The credit spread from yesterday is a credit of NET + 840 unless I should get squeezed out today or tomorrow.
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Trading Journal

Kind of trying to figure out how to do a DIAGONAL TIME CREDIT SPREAD based on directional trading. Buy the month and sell the short in the weekly, but only based on a directional signal. Anything to advise on this before I start messing around with it?
 
Michael

My regular weekly credit spread was the lower one. The PUTS.
50 520/515 @ .25 cents

I also put on another one trying to make an Iron Condor in the WEEKLY but made a mistake, as I was trading the long positions in the November Monthly TOS option chain. So I accidently put on another spread overhead I thought at the time, 50- OEX 555/560 CALLS at .60 cents.Turned out to be not a weekly, but the monthly.
Being November it is not going to make me an Iron Condor for this week. Nor can I seem to get premium to do so in the weekly.
I have a CLOSING order in at .52 cents. The market didn´t go down quite enough to close it out. So I am letting it sit. Shouldn´t get me in trouble tomorrow, or even next week. I expect the closing order will just be eliminated at the end of the day without being hit. The OEX would have to drop to 530 to CLOSE out properly with a small profit and covering the commissions.
 
Micheal

Did another long PUT position this morning. Being a counter trend trade I just went for a quick dollar. Barely made it.

5 PUTS NOv. $10.40 and sold at $11.40 = net + $464

I was basically just seeing if the trade would work, with the signal I got. Don´t like to trade counter trend. Too chancy.
 
Falconview, do you think you can consistently find a trade or two a day that can do this? If so, that is great. I dont know anything about doing that, will have to leave that to you. Michael
 
Quote from falconview:

Michael

__________________________

Trading Journal

Kind of trying to figure out how to do a DIAGONAL TIME CREDIT SPREAD based on directional trading. Buy the month and sell the short in the weekly, but only based on a directional signal. Anything to advise on this before I start messing around with it?
More...

what opinion are you trying to trade?
 
MICHAEL

I am only fairly sure of one trade like this a week. Sometimes two. This week I think has been exceptional because of the sideways action of this market for this week. Once you get some money the idea is raise the ante, or bet size.

I´m fine tuning the TIMING and entry and exits. Or trying to. Trying to see how reliable my market interpretation is becoming. I need to be completely confident for these trades.

ELITE TRADER ( Diagonal TIME SPREAD )

Buy the LONG monthly on a TIMED entry, going up, or down. SELL the WEEKLY for time decay. I notice the trend time scale I am using is not going to let me do this too much with the WEEKLY option sale. I was figuring on like a 3 days of time decay collection in the weekly and in the monthly gaining on the directional move trend. This week the short term moves were too short, only overnight. Might collect some TIME DECAY on the last days of the weekly here, and a bit on the directional move for the monthly. Will have to paper trade this as a diagonal and see how it works out?
 
Well the ads have been predicting a BEAR MARKET in a couple of days, or next week. What we have is a pennant, or flag formation forming, so we are going to get a break out, one way or the other on Monday is my guess.
This is still an intermediate uptrend in the weekly bar charts though.
 
Falconview, just did a cndor trade in the SPY, did 350 contracts, and then afterwards noticed a $2000 in commissions. Holy smokes, dont want to do that with real money! What are the other choices for trades. Are there some brokers who would do that for a lot less?
I know you could trade the SPX instead, just wondering how to do the SPY.
Thanks Michael
 
I guess eoption at the top of the page would have been a whole lot less. What is it, $3 per trade plus 10C per contact, so does mean $3.10 per contact total. That would have made the condor commission 1035, right? Michael

I thought there were some places that were much less than $1 per contact, are there?
 
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