OEX weekly options

T J

I got your query a day late. This is Tuesday morning. I see the market going down again after the opening gap?

TRYING MY NEW SYSTEM, WHICH I DO NOT UNDERSTAND TOTALLY YET, BORROWED FROM THAT GUY I PREVIOUSLY TALKED ABOUT. I´m tweaking and adjusting in experiments.

Made after commissions + $1195 net on the long options ( 5 contracts ) or 44% gain on capital.

The debit spead for the same move only made after paying commissions + $48 Which definitely is an education. I expected much more for a 5 point OEX move.

Seems I miscalculated my sell price for an exit on the long option at $7.80 I thought I would get it in a 3 point OEX move. But it took over 5 OEX points to get it. To enter a sell order early, I am going to have to play with that part of the option calculator. I did get it, but by a fluke. What I want is a 3 point OEX move exit price.

Interestingly enough the debit spread had a debit of -$1200 and made a net profit after commissions of +$48, or +4% return on capital.
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Going to have to really study how to make this work on a regular basis. Needs a lot of understanding and playing around on my part.
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FV:

I think the move is due to EUR/USD. It went down last evening, and then in early hours of today during the night, it went the other way. Probably due to stops being triggers.

This market seems to be mirroring the dollar, which has lost around 10% of its value in about a month.

Now it is 12:50PM: a possible retreat in EUR/USD. If this happens, let us see if market will also retreat.

Spreads: could you please explain the method from that guy? I am not sure what it is.
 
Huunh? Im looking for your private email?

If you go back through the posts you will find it already.

I´m trying to figure it out. Certainly trying to pick the top here, I´m not doing good at all. Going to have to devise a method of doing that.

Whoops! got to go, wife is honking her horn, she just got back with groceries.
 
Forget the company shares you bought Charlie? But I got into HES middle of August for 6 contracts at $4710 debit. Just sold them for $9720. Before commissions the gross is $5010.

That is 106% return on capital for a three month trade using January 2012 Leap options. A once a year trade. Nice to say, your TIP worked. The price of the stock should go to $65 at least? But I´m taking the money and run. This year was a funny money paper trade. But next year the real thing! ( grin! )

100% a year on a single trade is no joke at all.
 
Hi guys, was away for a few days.

Last week took advantage of of the larger down swings and closed the 2100/2125 NDX calls for .30 debit to be safe, also rolled my 1725/1700 to 1800/1750 puts for a net credit of .60.

When there had been an uptick, sold 2125/2150 calls for a credit of .40. Was happier being further OTM, and given what happened to day, feel much more comfortable that I would have.

So far I think everything is OK.

Michael
 
Stanford

Tell me if you make any money on these credit spreads on the monthlies with all this rolling down, or up stuff. Itemize it. I'm very curious how it actually works out in practice. The cost must eat into your original credit?

T J

Neither of your CBOE credit spreads url's would load on my computer. CBOE had two calculators, but neither worked to load. The plug in was not available, etc. Would still like a spread calculator to do a debit spread check up. You got another one?

This is night time here and was just trying something in a debit spread movement, but couldn't figure it out. I still don't know which way the market will go Wed morning? Your USD is down. Does that mean the market is going up? The EUR is kind of flat on my 15 minute time frame. Went up today then the line goes flat. So looks like only the USD is an indicator. I think the market is running out of steam, but the way this trend is going, no way yet to tell for sure. I was working on early entries and the cost of closing them in debit spreads when the market goes contrary, trying to figure the cost of closing them. Anticipating a market turn.
 
falconview, yes actually if they expire worthless, I will be up about 5% for the month, after all the adjustments.
Yes it does eat into the original credit, but if I could consistently do an average of 3% per month I am very happy.
Michael
 
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