OEX weekly options

Stanford

I was losing up to -$1500 today for a while. I see now before the close I´m only negative -$300
As TJ says, tomorrow will tell on the breakout move. I don´t need much to make a profit if it will go my way.
 
Elite Think

Whats a moc?

Yeah! I insured my puts with a debit spread in Calls. Hopefully I can make something.

Trend is still up, until we get a big correction swing one day.

I´m going to have to look at LONG straddles and strangles and see how they work.
 
Stanford

Market on close are usually day trading orders.

This trend is still going up. It doesnt increase much, too slow for making money other than credit spreads. I estimate if it going to keep going it will do so for another 24 OEX points. A second leg, or wave so to speak.

Weekly credit spreads under the market then would be the play I figure in PUTS? Straight CALLS are useless in such a slow market. Ive got a verical CALL spread on, we will see how that works out, as I don´t know.

But for my TOS account I´m thinking a Credit spread early in the week at maximum credit. Which reminds me I need to check on those credit spreads I did on scratch paper and see what happened. Back to the option chain.
 
TJ

Or Stanford

I´´m trying to figure out this credit spread deal here. Would one of you or anybody else double check this for me?

The credit spead was in PUTS, a bull credit PUT spread. This was Larry Bergs way of trading directionally using credit spreads. I guess I would have four sets of commissions to deduct. I forget what that is but can look it up.

sold 5 OCT 525 at $6.00
bought 5 OCT 520 at $4.20 for a net credit of (+ $1.80 )

Close the spread doing

buy 5 OCT 525 at $5.25
sold 5 Oct 520 at $2.45 for a ( $2.80) is what I figure.

Now do I add the two credits together? Or do I subtract them?

If I add them together I made $4.60 x 500 equals $2300 before commissions. If that is true, that is a nice trade, but reliant on direction. ( something not right here?)

Let me see if I can figure it a different way, as I´m confused.

Sell at $6 + and buy back at $5.25 gives me a + .75 cents
buy at $2.80 and take away the sell of + $2.45 leaves - .35 cents

So +.75 - .35 would leave a profit of +.40 cents

500 x .40 cents would be a $200 profit less commissions for four trades, or $52 I believe? Which would make a net profit of $200 - $52 equals $148

THIS SECOND SOLUTION SEEMS THE MOST LIKELY. SO WHERE THE HECK DID I GO WRONG ON THE FIRST ONE?

i´VE GOT STARS IN MY EYES HERE from trying to figure it out. I now get a .35 cents profit? Not .40 cents? On a third try to figure it out.

HELP!
 
Quote from falconview:

TJ

Or Stanford

I´´m trying to figure out this credit spread deal here. Would one of you or anybody else double check this for me?

The credit spead was in PUTS, a bull credit PUT spread. This was Larry Bergs way of trading directionally using credit spreads. I guess I would have four sets of commissions to deduct. I forget what that is but can look it up.

sold 5 OCT 525 at $6.00
bought 5 OCT 520 at $4.20 for a net credit of (+ $1.80 )

Close the spread doing

buy 5 OCT 525 at $5.25
sold 5 Oct 520 at $2.45 for a ( $2.80) is what I figure.

Now do I add the two credits together? Or do I subtract them?

If I add them together I made $4.60 x 500 equals $2300 before commissions. If that is true, that is a nice trade, but reliant on direction. ( something not right here?)

Let me see if I can figure it a different way, as I´m confused.

Sell at $6 + and buy back at $5.25 gives me a + .75 cents
buy at $2.80 and take away the sell of + $2.45 leaves - .35 cents

So +.75 - .35 would leave a profit of +.40 cents

500 x .40 cents would be a $200 profit less commissions for four trades, or $52 I believe? Which would make a net profit of $200 - $52 equals $148

THIS SECOND SOLUTION SEEMS THE MOST LIKELY. SO WHERE THE HECK DID I GO WRONG ON THE FIRST ONE?

i´VE GOT STARS IN MY EYES HERE from trying to figure it out. I now get a .35 cents profit? Not .40 cents? On a third try to figure it out.

HELP!
More...

Falconview, here is how it works. You had a credit of 1.80 on opening, then it cost you 2.80 to close it (debit), so you lost 1.00 on that trade. Don't do that one too often!
Michael
 
Quote from falconview:

TJ

Or Stanford

I´´m trying to figure out this credit spread deal here. Would one of you or anybody else double check this for me?

The credit spead was in PUTS, a bull credit PUT spread. This was Larry Bergs way of trading directionally using credit spreads. I guess I would have four sets of commissions to deduct. I forget what that is but can look it up.

sold 5 OCT 525 at $6.00
bought 5 OCT 520 at $4.20 for a net credit of (+ $1.80 )

Close the spread doing

buy 5 OCT 525 at $5.25
sold 5 Oct 520 at $2.45 for a ( $2.80) is what I figure.

Now do I add the two credits together? Or do I subtract them?

If I add them together I made $4.60 x 500 equals $2300 before commissions. If that is true, that is a nice trade, but reliant on direction. ( something not right here?)

Let me see if I can figure it a different way, as I´m confused.

Sell at $6 + and buy back at $5.25 gives me a + .75 cents
buy at $2.80 and take away the sell of + $2.45 leaves - .35 cents

So +.75 - .35 would leave a profit of +.40 cents

500 x .40 cents would be a $200 profit less commissions for four trades, or $52 I believe? Which would make a net profit of $200 - $52 equals $148

THIS SECOND SOLUTION SEEMS THE MOST LIKELY. SO WHERE THE HECK DID I GO WRONG ON THE FIRST ONE?

i´VE GOT STARS IN MY EYES HERE from trying to figure it out. I now get a .35 cents profit? Not .40 cents? On a third try to figure it out.

HELP!
More...


Either way you think of it would be fine, but you seem to have two different prices for the same thing:

"buy at $2.80 and take away the sell of + $2.45 leaves - .35 cents"

If the $2.80 a $2.80 or a $4.80 (as stated earlier)? The two numbers seem to be off by $2.

It is the only post I read today in this forum so far. I do not seem to have time to stay long around here. So I wish you all well.
 
Quote from falconview:

Elite Think

Whats a moc?

Yeah! I insured my puts with a debit spread in Calls. Hopefully I can make something.

Trend is still up, until we get a big correction swing one day.

I´m going to have to look at LONG straddles and strangles and see how they work.
More...

MOC= Market On Close? (type of order?).
 
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